maharashtra: pro- gr-essive agricultural – a new horizon · grown -kharif & rabi jowar,...

2012

Pascheemspeaks

Maharashtra: PRO- GR-ESSIVE Agricultural –A New Horizon

A 3 pronged Agricultural Strategy for Maharashtra

Table of Contents

Introduction ..................................................................................................................................................2

Unique levers of Growth...........................................................................................................................2

The New Horizon - PRO – GR –( aggr)- ESSIVE strategy framework .........................................................13

PILLAR 1: Pro- tect The Small Farmers........................................................................................................15

Leveraging Pro-biotic Biotechnology for Increasing Productivity Of Agricultural Land For Small Farmer

................................................................................................................................................................17

Organic Farming - The Next Frontier Of Farming In Maharashtra..........................................................24

Low Cost Mechanization Development ..................................................................................................34

Pillar 2: GR- Grow The Large Farmers .....................................................................................................45

Grapes: Grow new variety & crops to cater to international & local needs ..........................................45

Banana ....................................................................................................................................................48

Mandarin Orange....................................................................................................................................50

Onion.......................................................................................................................................................51

Tomatoes ................................................................................................................................................53

Mangoes.................................................................................................................................................. 55

Pillar 3: Aggr-Essive Supply Chain Interventions.....................................................................................58

Brand Building.........................................................................................................................................58

Adoption of Information and Communication Technology (ICT) ...........................................................61

Enable framework of Farmer Company & Farm Accounting System ....................................................71

Conclusion:..................................................................................................................................................74

Maharashtra: PRO- GR-ESSIVE Agricultural - A New Horizon

2012

Page 2

Introduction

Maharashtra is poised to become a beacon of hope for “next generation of Agriculture” out of India.

Thanks to the levers of growth that the state has built up through innovation, adaptability &

entrepreneurship.

Unique levers of Growth

Width and depth of the Agri product range

The range of agro climatic zone enables Maharashtra to produce a variety of various fruits and

vegetables. The various agro climatic zones are:

9 Agro Climatic Zones Agriculture Map of Maharashtra

South Konkan Coastal Zone - Profile with Width & Depth of Crop production

Sr.

No

.

Name of the

Zone

Geographical spread of

the zone/ Districts and

tahsils included

Climatic conditions Average annual

rainfall

Soil type Crop and cropping pattern

I Very high

rainfall zone

with laterite

soils

Comprises mainly of

Ratnagiri and

Sindhudurg Districts

Total area of the zone is

13.20 lakh ha. Area

under cultivation 3.5

lakh ha.

Daily temp. Above

20 C. Throughout

the year. May

hottest above 33

C. Rainfall due to

S-W monsoon

from June to Sept.

3105 mm in 101

days

Laterite. PH

5.5-6.5 acidic,

poor in

phosphorous

rich in nitrogen

and Potassium

Grains & Pulses: Rice is the

major crops i.e. 39% of cultivated area.

Ragi 2nd imp crop 0.45 lakh. Ha. Vari is

minor hill millet grown on the slopes,

pulses like horsegram grown on residual

moisture. Oilseeds-Niger/ Sesamum,

area under Summer Ground nut, Jowar

and Tur is likely to increase with

irrigation.

Horticultural crops-Mango, Coconut,

Arecanut, Cashewnut Jackfruit, Banana

and Pineapple

Spices like clove Nutmeg and

Blackpepper


2012

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Transition Zone1 - Profile with Width & Depth of Crop production

Sr.

No.

Name of the Zone Geographical

spread of the

zone/Districts

and tahsils

included

Climatic

conditions

Average

annual

rainfall


IV Sub Montane Zone/

Transition Zone 1

Spreads over 19

tahsils of five

districts viz,

nasik, pune,

satara, sangli &

kolhapur. The

area of the zone

measures

10,289 Sq Km

Average

maximum

temperature

is between

28-35 C and

minimum 14-

19 C

700-2500

mm. Rains

received

mostly from

S-W

monsoon.

Soils are reddish

brown to black

tending to lateritic.

PH 6-7.Well

supplied in

nitrogen but low in

phosphorous &

potash

Grains & Pulses: Mainly dominated by

kharif cereals, groundnut & sugarcane.

Rabi crops are taken where there are

deep soils & moisture holding capacity.

Vegetables-potato, onion, chillies,

tomato & brinjal.

Fruits-mango, banana, guava cashew

& grapes.

North Konkan Coastal Zone - Profile with Width & Depth of Crop production

Sr.

No.

Name of the Zone Geographical spread

of the zone/Districts

and tahsils included

Climatic

conditions

Average

annual rainfall


II Very high rainfall zone

with non lateritic soils

Comprises of Thane &

Raigad districts. Total

area 16.59 lakh. ha Net

sown area 4.69 lakh. ha

With forest zone about

3%. 32% of land is under

forest.

Avg .daily temp 22

to 30C.Mini. temp17

to 27 C. Humidity

98%in rainy season

& winter-60%

2607 mm in 87

days. Maximum

rain received in

July i.e.41%

Coarse &shallow.

PH5.5to 6.5, acidic

Rich in nitrogen,

poor in

phosphorus &

potash.

Grains & Pulses :Rice is major crop 40,600 lakh ha

Vari 19,600 ha.Pulses-udid/ tur Vegetables-

brinjal, tomato

Oilseeds-sesamum, niger

Fruits-banana, chicoo

Western Ghat Zone - Profile with Width & Depth of Crop production

Sr.

No.

Name of the Zone

Geo graphical

spread of the zone/

Districts and tahsils

included

Climatic

conditions

Average

annual

rainfall


III Western Ghat Zone

/Ghat zone

It includes hilly high

lying terrains of

kolahapur, satara,

pune, ahmednagar &

nasik districts &

small area of

sindhudurg district.

Altitude varies from

1000- 1900mt

Maximum

temp. ranges

from 29-39 C.

Minimum temp

ranges from

13-20 C.

3000 to 6000

mm. Rainfall

recorded in

different

places of the

zone viz

Igatpuri,

Lonawala,

Maha

baleshwar, &

Radhanagari.

'Warkas' i.e.

light laterite

& reddish

brown.

Distinctly

acidic, poor

fertility low

phosphorous

& potash

content.

Grains & Pulses: 25% area is under

forest. Principal crops-rice/ragi/ kodra &

other cereals. Rabi jowar, gram,

groundnut, niger. Sugarcane major

crop. Area under spices 353 ha. Fruits &

vegetables 2933 ha. Well suited

conditions for rain fed crops.

Fruits-mango, cashew, jackfruit, jamun

and karwanda.


2012

Page 4

Transistion Zone 2 - Profile with Width & Depth of Crop production

Sr.

No.

Name of the

Zone

Geographical spread

of the zone/ Districts

and tahsils included

Climatic

conditions

Average

annual

rainfall


V Western

Maharashtra

Plain Zone

/Transition-2

This zone includes

tahsils of Dhule,

Ahmednagar, Sangli &

central tahsils of

Nasik, Pune, Satara &

Kolhapur districts.

Geographical area

17.91 lakh ha.Net

area sown is 8.86

Lakh ha.

Water

availability

ranges from

120-150 days

.Maximum

temperature 40

C & minimum 5

C.

Well

distributed

rainfall 700

to 1200

mm.

Topography is plain.

Soils grayish black

.Moderately alkaline

7.4- 8.4, lowest

layer is 'Murum'

strata. Fair in NPK

content. Well

drained & good for

irrigation.

Grains & Pulses: The zone is

predominantly a kharif tract suitable

for single rain fed crop. Principal crops

grown -kharif & rabi jowar, bajra,

groundnut, wheat, sugarcane, udid,

tur gram & ragi.

Scarcity Zone - Profile with Width & Depth of Crop production

Sr.

No.

Name of the

Zone

Geo graphical

spread of the zone/

Districts and

tahsils included

Climatic conditions Average

annual rainfall

Soil type Crop and cropping

pattern

VI Western

Maharashtra

Scarcity Zone/

Scarcity Zone

This zone covers

geo graphical area

of 73.23 lakh ha.

The gross & net

cultivated area is

58.42 ad 53.0 lakh

ha respectively.

Suffers from very low

rainfall with uncertainty

& ill distribution.

Occurrence of drought

is noted once in three

years. Dry spell varies

from 2-10 weeks. Water

availability 60-140

days. Which is affected

due to 1) delayed onset

of monsoon 2) early

cessation of monsoon?

Maximum temperature

41 C minimum -14-15 C

Less than

750mm in 45

days. Two

peaks of

rainfall., 1)

June/ July2)

September.

Bimodal

pattern of

rainfall.

General topography is

having slope between

1-2%. Infiltration rate

is 6-7 mm/hr. The soils

are vertisol. Soils have

Montmorilonite clay.

Poor in nitrogen, low to

medium in phosphate &

well supplied in potash.

Grains & Pulses: Based on

bimodal distribution of rainfall

hence two cropping systems

are noticed. During kharif

shallow & poor moisture

retentive soils are cultivated.

Medium deep, moisture

holding capacity soils are

diverted to rabi cropping.

Kharif cropping 25-30%.

Crops-bajra, jowar,

groundnut, safflower, pulses

etc. Productivity is rather low

in both the seasons.


2012

Page 5

Moderate Rainfall Zone

Sr.

No.

Name of

the Zone

Geographical spread of the

zone/Districts and tahsils included


annual

rainfall


pattern

VIII Central

Vidarbha

Zone

/Zone of

Moderate

Rainfall

The zone includes entire Wardha,

major parts of Nagpur Yavatmal 2

tahsils of Chandrapur & parts of

Aurangabad, Jalna Parbhani &

Nanded districts. Largest agro

climatic zone encompassing 49.88

lakh ha geographical area & 35.73

lakh ha net cropped area.

Maximum temperature

33-38 C Minimum

temperature 16-26 C

Average daily

humidity 72 % in

rainy season, 53 % in

winter & 35% in

summer.

1130

mm.

Black soils

derived from

basalt rock.

Medium to heavy

in texture

alkaline in

reaction. Low

lying areas are

rich and fertile.

Grains Pulses & Oil seeds :

Cropping patterns Involves

Cotton, Kh. Jowar, Tur, Wheat

other Pluses & Oilseeds

Eastern Vidharbha Zone

Sr.

No.

Name of the Zone Geo graphical spread of

the zone/Districts and

tahsils included


annual rainfall

Soil type Crop and

cropping pattern

IX Eastern Vidharbha

Zone/ High Rainfall

Zone with Soils

derived from parent

material of different

crops. There are four

subzone based on

climate, soils and

crop pattern

Includes entire Bhandara

& Gadchiroli and parts of

Chandrapur and Nagpur

districts. Geographical

area is 32.7 lakh/Ha. And

with almost 50% under

forest. Gross crop area

10.8 lakhs/Ha.

Mean Maximum

temperature varies from

32 to 37 C. Minimum

temperature 15 to 24 C.

Daily humidity 73% for

rainy season 62 winter &

35 summer

950 to 1250

mm on

western side.

1700 mm on

extreme east

side No of

rainy days 59.

Soils derive

from parent

rock granite,

gneisses, and

schist’s. Brown

to Red in

colour. PH 6 to

7

Grains, Pulses & Oil

seeds : Paddy is

predominant crop in

Bhandara. Rb. Pulses-

Gram, Lathyrus. Paddy

is followed by Rb. Jowar

Pulses and Oilseeds.

Assured Rainfall Zone - Profile with Width & Depth of Crop production

Sr.

No.

Name of the

Zone

Geographical spread of the

zone/ Districts and tahsils

included

Climatic

conditions

Average annual

rainfall


pattern

VII Central Maha

rashtra

Plateau Zone

/Assured

Rainfall Zone

Comprises parts of

aurangabad, jalna beed &

osmanabad districts. Major

parts of parbhani & nanded

& complete latur buldhana

& parts of akola, amravati,

yavatmal, jalgaon, dhule &

solapur. Area accounts to

75 lakh ha. Gross cropped

area is 67.8 lakh ha. Forest

accounts to 9.90 % of

geographical area.

Maximum

temperature

41 C

Minimum

temperature

21 C

700 to 900 mm

75 % rains

received in all

districts of the

zone.

Soil colour ranges

from black to red.

Type- 1) vertisols

2) entisols & 3)

inceptisols PH 7-

7.5

Grains, Pulses & Oil seeds: Jowar

is a predominant crop occupying

33% of gross cropped area cotton-

22.55%. oilseeds 5.17%, pulses

7.63 %. Kharif jowar /bajra followed

by gram, safflower. Area under

paddy is increasing. Pulses- tur,

mung, udid, gram & lentils.

Oilseeds- groundnut, sesamum

safflower & niger. Sugarcane &

summer crops are taken on

availability of irrigation.


2012

Page 6

Higher agricultural sector growth than the national average even after water stress:

Over the last 5 years Maharashtra has shown a growth of 6% in agriculture sector as compared to the

national average of 2% (FY10). This reflects an ability to use appropriate art & science o agriculture

entrepreneurship & innovation to impact Agri growth. This has been achieved insipte of 2 structural

weakness:

1. Water scarcity

2. Small land holdings

Water scarcity

Maharashtra is basically rain fed state with 80% area leaving only 20% under Irrigation, Out of this

around 17 % is through well irrigation. There are large variations in the quantity of rainfall within

different parts of the state. Ghat and coastal districts receive an annual rainfall of 2000 mm but most

part of the state lies in the rain shadow belt of the ghat with an average of 600 to 700 mm. The rainfall

variations from 500 to 5000 mm have been recorded with an average of 1000 mm distributed over 60-

70 days.

Geographically, historically and according to political sentiments, Maharashtra has five main regions:

� Vidarbha Region - (Nagpur and Amravati divisions) - (Central Provinces and Old Berar Region)

� Marathwada Region - (Aurangabad division)

� Khandesh and Northern Maharashtra Region - (Nashik Division)

� Desh or Western Maharashtra Region - (Pune division) and

� Konkan Region - (Konkan Division) - (including, Mumbai City and Mumbai Suburban Area).

Maharashtra contributes to about 9% of the total Indian agricultural output.

The geographical area of the state is 761 lakh acres. The total gross cropped area is 558 lakh acres of

which 432 lakh acres are under net crop.

The state is geographically divided into 4 clusters and each cluster has a different set of crops due

to different soil composition:

CLUSTER 1 -KONKAN REGION

Districts: Thane, Raigad, Ratnagiri, Sindhudurg

CLUSTER 2 - WESTERN GHAT REGION

Districts: Nasik, Pune, Ahmednagar, Satara, Sangli, Solapur, Kolhapur

CLUSTER 3 - MARATHWARA REGION

Districts: Aurangabad, Jalna, Beed, Latur, Nanded, Parbhani

CLUSTER 4 -VIDHARBHA REGION

Districts: Akola, Amravati, Wardha, Yoetmal, Washim, Nagpur


2012

Page 7

Small land Holdings

The land utilization pattern of the state:

Net Area Sown,

174733, 56%

Misc.Trees & groves,

2488, 1%

Current Fallow ,

13271, 4%Other Fallow,

12041, 4%

Permanent Pasture,

12524, 4%

Culturable Waste,

9137, 3%

Non- Agril use,

14069, 5%

Barren & uncult. ,

17198, 6%

Forest,

52122, 17%

*Area fig in ‘00’ ha

Source: MIDC report

Unlike other states the current average land holding of the farmers is ~3.5 acres as compared to 5.5

acres in 1990-1991.

In 09-10 the state’s GSDP has shown a growth of 8.7% over previous year’s GSDP. Currently

Maharashtra’s GSDP contributes to about 14.7 % to the GDP.

The per capita state income of Maharashtra is almost 1.5 times of per capita national income. Yet

farmer incomes are not keeping pace despite the fact that state’s State agricultural economy is growing

at 10%.

Around 65% of the population in the state is dependent on agriculture. Any improvement in this sector

has potential to reduce poverty. The Government of Maharashtra recognizes the importance of

agricultural sector in terms of its potential to address the key challenges of unemployment and poverty

in the state.

No. of

Operational

Land Holding

(lakhs) Area (lakhs Ha)

Farmers % %

Marginal 53.06 43.71 26.49 13.18

Small 36.06 29.71 51.27 25.5

Semi-

Medium 22.74 18.73 61.09 30.39

Medium 8.65 7.13 48.8 24.27

Large 0.87 0.72 13.38 6.66

Total 121.38 201.03


2012

Page 8

Balanced exports & domestic (interstate) market:

Maharashtra statistics shows that the state contributes very well to the exports and domestic markets.

Crops like mango, grapes, banana, and onion leads the exports Basket. The table above shows the

contribution of state to the overall Agri sector of the country.

Crops Production(' 000 MT) Exports(‘ 000 MT)

Mango 597 67

Grapes 440 56

Banana 5200 780

Onion 3146 471

Tomato 1112 300

Mandarin Orange 826 41

Strong processing linkages

To support exports and domestic consumption, Government has rolled out several plans for

encouraging private players to setup processing units in Maharashtra. In Eighth 5 year plan Government

provided assistance to setup 150 centers for Food Processing Training Center and later provided

financial support to establish it.

Agri Sector Key Players in Maharashtra

Co-operatives partnership society like MAHAMANGO established facilities like pre-cooling, cold-storage,

pack house, grading packing line etc. to support mango farmers for exports. The quality of facilities can

be judged by the fact that a Chinese delegation visited and inspected the facilities and agreed to import

Mangoes from India. This has supported export of Alphonso to China in large volumes.


2012

Page 9

In private sector the state also has Agri produce consumers industries like textile, sugar mills, oil

manufacturing, wineries etc. some national players in the state are: Reliance Industries, Ruchi Group,

Sula wine etc.

Proactive government initiatives & implementation – A Strong Eco System

Maharashtra government has taken many initiatives to support the Agri sector of the state. It compasses

training support, R&D, other infrastructure & financial support to attract private players at various

stages of value chain.

Government Scheme:

• Rashtriy Krushi Vikas Yojana

a. Farm Pond – Supplies pump set,

sprinkler etc.

b. Onion Storage capacity

c. Onion Chawl erection

d. Up gradation of pacs

• National Food Security Mission

• Maharashtra agricultural competitiveness

project (MACP)

Knowledge, Training & R&D

• Agricultural Universities - 4

• Agricultural colleges - 88 ( 25

Govt. & 61 Pvt., 2 aided)

• Centers for capacity Building:

a. State agri. Extension Management

Training Institute –SAMETI, Nagpur

b. Regional Agri. Extension Management

Training Institute– RAMETI (7)

• Six National Research Centre

a. Cotton, Orange, Pomegranate, Grape,

Onion & Soil Survey

b. Post Harvest Training Centre at

Talegaon, Dist-Pune, One of its kind in

Country

Infrastructure Support

1. Marketing platform: APMCs - 294

2. Pre and post harvest health check up

a. Soil Testing Labs – 118 (29 Public ,

89 Private)

b. Residue Testing Labs – 2

c. Fertilizer testing labs - 5

d. Seed Testing Labs - 3

e. Agro polyclinic - 231

f. Taluka Seed Farm - 194

g. Horticulture nurseries - 1373

h. Bio- control lab - 10

i. Pesticide Testing Labs - 4

3. Seeds Infrastructure

a. MSSCL & NSC is major public sector

organization in seed production and

distribution

b. Private & Public sector produces 18

lakh qtls. seed

c. 150 Seed processing Plants

d. Average Capacity – 400 qtls/day

e. 4 SAUS are engaged in Breeder &

Foundation seed production

f. Seed testing laboratory


2012

Page 10

One Floriculture park One Vapour Heat Treatment Plant

One Mega Food Park and Three Food parks.

One Eradiation Plant

Two Wine Parks - 54 wineries

Four PEQ facility centers

130 Integrated Pack Houses accredited by APEDA Established 10 Export Facility Centers under 6

AEZs

Facilities including pre-cooling, cold storage,

pack house, material handling line, ripening

chambers

Maharashtra Food and Agro Industry-Key Statistics*

Post Entry Quarantine centers 4

Irradiation Plant 1

Vapour Heat Treatment Plant 1

Seed Processing Plant 150

Private seed Producers 156

Developed Model Organic Farm 37

Winery 54

Agri Export Zone 8

Integrated Pack Houses accredited by APEDA 130

Primary Agri societies 21000

*Source: agricoop.nic.in

Significant progress of collective and co-operative working

Maharashtra farmers and government has exhibited a unique trend of forming and successfully

operating crop based organizations e.g. MAHA GRAPE, MAHA MANGO, MAHA BANANA,MAHANAR

(Pomegranate), Floriculture association, etc. these association/co-operative work for upliftment of their

farmers and crops. These groups act on the needs and demands of farmers and also develop joint

infrastructure for the same

They also formed Self Help Groups (SHG) which would look after post harvest handling, marketing and

primary processing. They also run Agri business centre. All these co-operative, SHG and associations

work smoothly and benefit the farmers in numerous ways. They have played a key role in improvement

of farmer status to help them to reach the current level.


2012

Page 11

Evolving infrastructure designed to support Agriculture

The good road and rail connectivity even helps the farmers to access local market and airports and ports

helps to access the International market.

• Road Connectivity: 97.5% of the villages are well connected with all weather and 2% by fair weather

roads in the state.

• Railway Connectivity : The railway route length per 1000 sq.km of geographical area is 19.44 km in

the state against 19.69 in the country (as on 31 march,2010)

• Airports: the state has the highest no of airports in the country. Maharashtra has a total of 22

airports out of which 3 are international and 5 domestic airports. Maharashtra is well connected to

the major cities in the USA, EU, Asia and other Indians metropolitan cities.

Ports: Maharashtra has a 720 Kms in coastline with 2 major ports and 48 minor and intermediate ports.

JNPT in Maharashtra is the India’s largest container port (59.4%), 20.5% of the total cargo traffic of the

major port in India handled through these ports -

Leadership status in select high value basket of products Like in Mango, Grapes, Banana,

Tomato, Mandrin Orange, Onion

Maharashtra has aggressively created a niche position in production / Exports in select crops. It is poised

to exploit and potentialise the next escalation points for a “World Leadership” position.

e.g. Maharashtra shows maximum production of Alphonso, which accounts for 90% of the total volume

exported from India. In exports of Kesar variety of mangoes Gujarat is followed by Maharashtra.

MANGO PRODUCTION (year 2009-2010) BANANA PRODUCTION (year 2009-2010) Area Productivi

ty

Area Productivit

y

No

.

State

(' 000

ha)

Production

(' 000 MT)

( MT/ ha)

No. State

(' 000

ha)

Production

(' 000 MT)

( MT/ ha)

1 Andhra Pradesh

480.4 4058.3 8.4 1 Maharashtra 85 5200 61.2

2 Uttar Pradesh

276.4 3588 13 2 Tamil Nadu 113.7 4980.9 43.8

3 Karnataka 153.8 1694 11 3 Gujarat 61.9 3779.8 61

4 Bihar 146 995.9 6.8 4 Andhra Pradesh 80.6 2819.6 35

5 Gujarat 121.5 856.7 7 5 Karnataka 104.4 2132.3 20.4

6 Tamil

Nadu

132.7 636.3 4.8 6 Madhya Pradesh 33 1459.8 44.2

7 Maharas

htra

474.5 597 1.3 Total 770.3 26469.5 34.36

Total 2312.3 15026.7 6.5

*Source: Indian Horticulture Database-2010


2012

Page 12

GRAPES PRODUCTION (year 2009-2010) MANDARIN ORANGE PRODUCTION (yr 09-10) Area Productiv

ity

Area Productivit

y

No

.

State

('

000

ha)

Production(

' 000 MT)

(MT/ ha)

No. State

(' 000

ha)

Production(

' 000 MT)

( MT/ ha)

1 Maharashtr

a

82 440 5.4 1 Maharashtra 138 826.5 6

2 Karnataka 17.4 317.6 18.3 2 Madhya

Pradesh

38.3 677.8 17.7

3 Tamil Nadu 2.6 44.1 16.8 3 Assam 12.8 141.8 11

4 Andhra

Pradesh

1.4 29.8 21 4 Rajasthan 8.9 135 15.1

5 Punjab 0.5 15.5 28.6 5 Mizoram 10.6 64.7 6.1

6 Others 2.4 33.7 14 Total 285 2084 7.3

Total 106.

4

880.7 8.3


ONION PRODUCTION (year 2009-2010) Tomato Production (2009-2010)

Area Productivity Area Productivity No. State

(' 000 ha)

Production

(' 000 MT)

(MT/ ha)

No. State

(' 000 ha)

Production('

000 MT)

( MT/ ha)

1 Maharashtra 200 3146 15.7 1 Andhra

Pradesh

87 1652.1 19

2 Karnataka 141.3 2266.2 16 2 Karnataka 48.3 1580 32.7

3 Gujarat 43.4 1078.6 24.9 3 Orissa 102.9 1394.7 13.6

4 Bihar 53 972 18.3 4 Maharashtra 50 1112.5 22.3

5 Madhya

Pradesh

57.3 952.3 16.6 5 West Bengal 53.5 1050 19.6

Total 756.2 12158.8 16.1 Total 634.4 12433.2 19.6



2012

Page 13

The New Horizon - PRO – GR –( aggr)- ESSIVE strategy framework

The Next frontier of growth hinges upon improving value addition by utilizing the unique levers to

address the future.

The focus of Agri Department so far was is on input & product and now the gear needs to shift to

consumer & market led strategies for maximizing value additions. The prescriptions for higher value add

to improve the returns on time & Money invested by farmers is to implement Pro-Gr-Essive strategy

framework.

PROtect - the small farmers and maximize the profit

GRow - the large farmers

aggrESSIVEly – Manage the supply chain – Branding, ICT, and Infrastructure


2012

Page 14

Pro-tect The Small Farmers

1. Leveraging Pro-biotic Biotechnology For Increasing

Productivity Of Agricultural Land For Small Farmer

2. Organic Farming - The Next Frontier Of Farming

In Maharashtra

3. Low Cost Mechanization Development


2012

Page 15

PILLAR 1: Pro- tect The Small Farmers

Maharashtra like rest of the India is characterized by relatively small land holding. Efforts for boosting

farm productivity have been focused on adopting technology and methods suitable for larger farms like

in the West. Tractors, protection farming, drip irrigation, hybrid seeds, chemicals-fertilizers & pesticides

are all technologies which support scale of farming typically greater than 10 acres.

Maharashtra and India’s future lies in ensuring high small farm productivity and profit gain by focusing

on solutions & strategies for smaller farmers. The focus should be 3 cost effective pillars of small

farmer’s profit – P.O.L


2012

Page 16

Leveraging Pro-biotic Biotechnology for Increasing

Productivity Of Agricultural Land For Small Farmer


2012

Page 17

Leveraging Pro-biotic Biotechnology for Increasing Productivity Of Agricultural Land For

Small Farmer

Maharashtra 226 lakh Hectares of cultivatable area and 135% of crop intensity has Soil and agro-

ecological conditions that are not adequate for a long agricultural season. In areas of intensive land use,

soil erosion, forest degradation, and reduction of soil fertility in agricultural land have become

increasingly evident.

Factors Affecting Agriculture

Since 1970s, around 20% of the land area of the villages, has been lost or rendered unproductive due to

land degradation and soil erosion. Around 65% of the households in the villages have been affected;

crop production has decreased by 25-30%, average household income has reduced by 25% and about

40% of the forest and grazing area has reduced as a result of land degradation resulting in

• Un-viable farming

• Lack of diversification in Crops & Other activities in Vidarbha & Marathwada

• Land locked areas in Marathwada & Vidarbha

– Lack of infrastructures, markets, roads, railway rake points, airport

• Infrastructural Bottle necks

– Roads, Market facility, irrigation, Tribal area

– Input dissemination , poor credit, Bank facility

To improve the natural degradation the farmers were educated to use fertilizers, pesticides and other

chemicals to enhance productivity. But continuous and indiscriminate usage of chemical based inputs

has led to:

• Change chemical balance of the soil.

• Increased input cost.

• Affects crop quality.

Today's challenges are various and contradictory. Increased agricultural yields are needed in order to

feed a growing population, negative environmental impacts must be minimized, and production has to

adapt to a rapidly and ever-varying environment stemming from climatic change due to high chemical

usage.


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Soil Biological Process through Micro-organism

1. Soil Formation and Aggregation:

Soil aggregates are clumps of soil particles that are held together by moist clay, organic matter (like

roots), gums (from bacteria and fungi) and by fungal hyphae.

2. Organic Matter Breakdown:

Organic matter breakdown is not a single chemical transformation but a complex process.

3. Degradation of Toxic Substances:

Pesticide residues in the soil are broken down in a similar way to organic matter. They are oxidized by

the microorganisms that produce the appropriate enzymes. Pesticides generally have very complex

structures and most are converted to several intermediate organic compounds before finally being

converted to carbon dioxide and water.

4. Transformation of Inorganic Molecules:

Nitrogen Cycle: It is described as a cycle because the nitrogen is never lost completely, it just changes

form and is held in different places.

1. Ammonification

2. Nitrification

3. Denitrification

4. Nitrogen fixation

5. Nitrogen immobilization

Therefore the need of the hour is a chemical free, low cost product/method to increase productivity of

the land.

Methods of growing productivity of agricultural Land in Maharashtra:

• Balanced use of Probiotic Biotechnology products to achieve the most favorable consumption

ratio. Use of hybrid and improved seed varieties.

• Implementation of scientifically advanced micro-organism in agriculture.

Magic Gro Super of Organic Biotech supports microbial activity to promote healthy plant growth of Oil seeds / Wheat / Rice / Corn

/ Bajra / Leafy Vegetables / Fruits & Vegetables.

Advantage of Pro-biotic Biotechnology Products:

• Simpler & Economic to use – The products water soluble and have foliar application. For crops

like Oil seeds / Wheat / Rice / Corn / Bajra the consumption is 1 kg/acre.

• Increase Yield - 25-35% depending upon the crops


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• Reduces Pesticide consumption - 15-20% reduction in usage of pesticides due to better

immunity

• Reduces Fertilizer Consumption - 10-15% reduction in usage of fertilizers

• Soil Conditioning - The usage of Biotechnology product also makes the soil nutritious for the

coming season

Example 1: Economic Benefit Analysis of Grapes

Parameters Without Biotechnology

Product

On Application of

Biotechnology Product Basis

Seed

Pesticides

Does not require

much pesticide.

Not sensitive to

pests

Fertilizers and

Manures 10000 7600

6000 for fertilizer

and 1600 for MGS

Other 8000 8000 Irrigation,

electricity etc

Cost of Cultivation

per Acre

Total 20000 18000

Price Realization per

acre 91000 104650

Increase of 15-20%

in yield

Post Harvest Losses

and cost Incurred - -

Gross Margin per

acre 71000 86650

Biotechnology

product’s share of

increase profit

2% ( Rs. 1733)

Cost of XXXXX

price of Rs 1600

per acre


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Example 2: Application of Biotechnology for Soya bean farming

One of the crops that show good response to microbial intervention is Soybean. High soybean yields

require large amounts of N fertilizers, which are expensive and environmentally damaging problems.

Biological fixation of N2 is a low-cost source of N for soybean cropping through the symbiotic association

between the plant and bacteria. In general, symbiotic nitrogen fixation in crop legumes not only reduces

fertilizer costs but also improves soil fertility.

Soya bean Without Magic-gro® Plus

application

With Magic-gro® Plus

application

Total Area 1 Acre 1 Acre

Yield per acre 7 quintal 12 quintal

In spite of any possible limitations, the use of inoculants appears compulsory in a frame of sustainable

agriculture, which seeks to increase crop yields and nutrient-use efficiency while reducing the

environmental costs associated with agriculture intensification.

It has been established that use of Rhizobim alone will not suffice. The use of inoculants based on soil

bacteria other than rhizobia has also increased in the last

Although less developed, it is expected that inoculants based on mycorrhizal fungi will also play a

relevant role in sustainable agriculture and forestry.

Adoption Barriers

The main barriers in adoption of the Biotechnology product/methods can be clustered as follows:

1. Awareness barriers – Farmers are minimally aware about existence and benefits of these types

of products

2. Technology and knowledge barriers - Furthermore, there is a need to further build the

knowledge and skills of sectoral institutions to deliver new results. Farmers have low awareness

about the biotechnology products and techniques.


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Suggested Policies for Pro-biotic Biotechnology Products:

Policy 1: A budget of Rs. 200 Cr. for free sampling of Probiotic Biotechnology Product:

• A budget of Rs. 200 Cr. should be sanctioned for the providing free samples to small farmers of the state.

• The product should be tested by government labs and only passed product to be distributed.

• The sample should be provided with small training session on the application of the product in their type

of field.

• The sample should be provided based on the size land holding and type crop grown by each farmer.

Policy 2: Sectoral Institutes should be funded with Rs 2 Crores for R&D & farmer education about new and

existing biotechnology products

• Pro-biotic Biotechnology Products are different for different types of soil. So the R&D for new product

development should be a continuous and simultaneous process.

• Different crops require different Pro-biotic Biotechnology products.

• The sectoral institutes with R&D facility should be funded with Rs 2 Crores for developing new products.

• These institutes should also conduct continuous education and promotion campaign across the state.

Policy 3: Clarity on No Certification or Registration for these types of products:

• Internationally these products do not require any registration and certification for these products like

other chemical fertilizers and pesticides. Similar strategy should be followed to promote usage and

availability of these products among farmers.

The “No certification and registration” should be promoted simultaneously with promotion of the products.


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Organic Farming - The Next Frontier Of Farming In Maharashtra


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Organic Farming - The Next Frontier Of Farming In Maharashtra

The farming that is driven to produces food that do not involve modern synthetic inputs such as

synthetic pesticides and chemical fertilizers, do not contain genetically modified organisms and are not

processed using irradiation, industrial solvents, or chemical food additives. It can be said that it is the

solution which blends science and tradition to produce under an ecosystem that benefits one and all.

Organic farming essentially that is not only chemical free produce but also same or higher yield with

lower input cost.

There are two types of Organic food categories:

1) Certified organic- This Organic produce fulfills the norms and compliances set by the certifying

agencies. It has three sub categories:

• "100% Organic": Can only contain organic ingredients, meaning no antibiotics, hormones,

genetic engineering, radiation or synthetic pesticides or fertilizers can be used.

• "Organic": Contains 95% organic ingredients, with the balance coming from ingredients on

the approved national list.

• "Made with Organic Ingredients": Must be made with at least 70% organic ingredients,

three of which must be listed on the package, and the balance must be on the national list.

2) Non Certified Organics- This Organic produce is produced and bought without any certification from

any authorities. Mostly produced and sold based on Relationship of trust between the farmer and

retailer. It can also be termed as perceived organic.


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Organic farming much maligned and least understood. It’s a unique Indian opportunity.

Myth Reality Implication

• Export market is the key

driver of the organic

business

• The key driver of Organic

food adoption is consumer

preference for “chemical

free” food

• Consumers prefer to be

“fully” organic and not

partially

• The domestic market is the

key driver of growth though

exports is the driver of

standards

• The primary driver of organic

food adoption is:

Farm economics and land

sustainability

• Consumers will readily buy

even partial organic

• For anything to sustain in India it is

important that it captures the Indian

market.

• Considering the average land

holdings in India and Economics

organic Farming is emerging to be

the only choice for farmers to

reduce the Input cost and to

maximize profits

• With increasing health awareness

India is ready to experiment with

anything that has a perceived better

health notion associated with it

Product:


• Organic produce has

challenges of taste, shelf

life and physical

characteristics

• Organic produce is only

viable for certain crops

• There is limited market

availability of Organic

products

• Organic products sell at 2-

3 times premium

• Organic produce is better quality

produce with higher shelf life

• Organic production is happening for

all crops and processed food

• There is limited market availability

of Organic products but number of

retail counter are around 5000 Very

few stock full range, Fruits and

vegetables are not available

• Organic produce gets a farmer 10 to

25% premium but for consumer it is

at 100 to 300% premium.

However, some players like Morarka

have stabilized operation at 30-40%

premium

• Both in terms of shelf life and

higher revenue Organic is the

emerging key word

• Organic is available in almost all

categories and in all forms

• Whatever is put on shelf is being

sold. Customers are willing to

buy everything that reaches

them

• All Organic produce is selling at

a premium. With increasing

players and decreasing

operational cost the margins are

shrinking


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Knowledge and Infrastructure:


• Since organic farming is

traditional, knowledge of

Organic farming exists within

farmers

• Testing and certification is not

easily available and is

expensive

• Central and state legislation is

largely in place

• Effective organic farming needs

more intensive “knowledge” of

farm, soil, crop rotation, inputs

etc.

this knowledge base is “scarce”

and largely non standards

• Testing in India is weak

Certification is inexpensive as a

group. For Indian market trust is

more important than

certification example PGS

• Central and state legislation is

still evolving

• Organic is not traditional

farming it involves a lot of new

scientific approach

• Testing and certification is

becoming very easy and

inexpensive. Moreover

government is taking steps to

encourage it further

• Central and state legislation will

evolve due to pressure from

marketers and consumers

Supply Chain:


• Output linkages for raw

produce are weak and to

processed food are slightly

better

• No significant barrier to getting

relevant farm and post farm

equipment and packaging

• There is a challenge in sourcing

natural fertilizer in Organic

• Output linkages to processed

are weak due to scale issues

and output linkages for fresh do

not exist

• Shortage of both on-farm and

small scale equipment of good

quality Packaging solutions not

available at farm gate

• There are no micro-macro

challenges in sourcing

manure/compost:

- 1 livestock per acre is required

compost and vermi-

compost available (sometimes

in the first year of transition

extra manure has to be sourced

from outside which is not

currently seen as a challenge)

• There is a huge scope in

processed and fresh category

• Farm gate and packaging

solutions are also huge

potential markets

• With the livestock availability in

India it is never a problem to

have a problem in sourcing

natural fertilizer in Organic

farming


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Economics:


• Organic produce has lower

yields in the first three years

• Organic production may be

lower in input cost but has

higher labor and other costs

• Organic crops are more

susceptible to diseases and

pests

• In our sample most farmers felt

that yield is not any lower or at

times even better. Some who

had used non-organic inputs for

many years had experiences of

drops in yield

• Organic production has much

lower input costs and similar

labor costs to non-organic.

However management time-

daily attention is a key issue

• If proper methods are followed

actual performance of organic

has been same or better

• Lower yields in first three years

is hardly a deterrent for farmers

• Time management and extra

labor is a deterrent only for

lease farms

• All crops need precaution and

attention


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Farm economies in India have also proved that Organic farming is the future

of Indian farming in more ways than

one.

The comparison below reiterates the point further:

Banana:- 60-90 days crop (most of varieties grown in India)

Parameters Conventional

Agri-produce

Organic Agri-produce ( till it

gets to year 3 or 4 of the

crop )

avg. cycle time for crop 60-90 days 100-120 days

Yield/ hectare 80-100 tones 50-70 tones ( best yield)

Input cost ( assuming plant

is already there to bear

fruits from season to

season)/ hectare

30k-40k 70k-90k ( bio-products

included as inputs)

Market value (Rs.)/ hectare 2 -4 lakhs 3-3.5lac

ORGANIC FARMING IS THE FUTURE OF FARMING IN

INDIA


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Owing to its rich traditions of organic farming a lot of work has been done since the time the first farm

was converted into organic. Various initiatives have been undertaken by the government from time to

time.

Still a lot of work has to be done. Being a reservoir of natural resources the state has the massive

potential to become the pioneer of organic farming. Current organic scenario indicates that.

Current organic picture of Maharashtra

Presently the total area under organic cultivation for Maharashtra is 6.5lakh Ha which is increasing

annually. Moreover about 30 percent of the area is under forest cover which is considered to be organic

by default.

Advantage Maharashtra

A state with rich traditions of organic farming

A large area under extremely low chemical input agriculture belonging to tribal population.

A state with massive potential to become the pioneer of organic farming


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Area under organic certification process and number of registered farmers (2009-10)

o Area under Organic cultivation : 6.50 Lakh Ha

o Area registered for certification : 1.14 Lakh Ha

o Certified area : 0.42 Lakh Ha

o Area Under Conversion : 0.72 Lakh Ha

o Total Vermi compost units : 1.26 Lakh

o Total Bio Dynamic Compost Depot : 2.02 Lakh

o Identified service Providers : 91 NGO’s

o Developed Model Organic Farms :37 Farms

o Major Crops : Cotton, Cereals, Fruits & Vegetables etc

About two lakh farmers have been registered as certified organic farmers. This is about one third of the

total number of certified organic farmers in the country. Presently even having such a vast pool of

natural resources that is organic and large number of certified organic farmers the overall state wise

ranking of various organic crops needs to be improved.

Maharashtra –Present Organic statistics crop wise

Presently cotton has been identified as major organic produce in the state. Besides that fruits,

vegetables and herbal plants also contribute a lot due to large forest cover in the state.

Organic Maharashtra-an opportunity

According to a report banana, pomegranates, pineapple, grapes, amaranth, ginger, large cardamom,

sweet fennel, peanut, onion, and sugar/jaggery are the commodities which will emerge as significant

organic commodities produced in India in the next two to three years. Already production of these crops

has been going on Maharashtra.

Parameter

Cotton Wheat Other

cereals

Pulses Oil seeds Spices Fruits/ve

getables

Herbal/

medicin

al

othe

rs

Quantity

(tones)

155766 2795 15355 13756 55607 8516 143093 6214 1206

Area (in

lakh ha)

81360 1294 5860 9201 35058 1897 10561 1022 6276


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The table below indicates the potential for various organic produce for next 5 years.

Crop Coverage area(hectares) Estimated coverage area in

next 5 years(hectares)

Pulses 9201 15000

Cotton 81360 1,50,000

Wheat 1294 4000

Fruits+Vegetables 10561 20,000

Organic Maharashtra -the way forward

Need for cluster based organic farming:

The next few years have been forecasted as very encouraging for organic cultivation. The need of the

hour is to identify the major organic crops that are showing encouraging signs for growth. After

identifying them there is need to identify different pockets in the state where these crops are being

cultivated. This is called ‘cluster based approach’.

Often an organic farming faces the issue of being surrounded by conventional farmers and end up selling

his produce with them thereby incurring losses. Hence in order to reduce transportation cost, a cluster

based approach is required. This cluster based approach consists of various steps.

Step 1: Identifying the crop:

The first step is to identify the crop. Considering cotton as an example it is the leading organic crop that

is produce in Maharashtra. Presently the current organic cotton production area in Maharashtra is

about 81360 hectares which is about 70 percent of the total organic production in Maharashtra. The

next 5 years for organic cotton shows more than 100 percent rise in its production.

Step 2: Identifying the cluster:

Cotton in Maharashtra is cultivated along the river Narmada. There is need to identify different clusters

where organic cotton can be cultivated along the area.

Step 3: Strengthening of supply chain:

After identifying different clusters the next step is of strengthening the supply chain. Presently only 15-

20 percent of the total farm produce that reaches the market is accounted as state organic output

whereas 80-85 percent of the total farm produce is sold as ordinary produce, consumed by farmer or

sold directly to consumers. There is a requirement for collection centres or Mandis where the organic

produce can be collected.


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Separate Mandi for organic produce

Similar on the lines of conventional farming, Organic Mandis should be established across the state. This

will help in selling organic produce at a premium. About 20 lakh additional jobs can also be generated if

on-farm storing, processing, value addition, packaging and marketing facilities are included, considering

organic farms provide more than 30 per cent more jobs per hectare as against non-organic farms in the

next five years.

Also there should be emphasis on export related organic produce. As the soil in Maharashtra is

conducive for export oriented organic produce like spices, the farmers should be encourage to opt for

such organic produce. With about 45 per cent of total area under certified organic farming in India,

Maharashtra has the potential to take India’s global share in organic exports from less than one per cent

to about 2.5 per cent by 2015.

Moreover research grants should be given to state based universities for further research in developing

various kinds of seeds and plants that uses no or less chemicals. Plus there should be group tours

conducted to organic producing countries for state officials, researchers and likeminded people for

study and experience.

Also one of the major issues organic agriculture is facing at the present is the lack of education and

awareness among farmers. As organic farming is a bit labor intensive, a proper training to farmers about

organic inputs and farming techniques is a must. Annual training budgets of around 7 crores should be

sanctioned to the relevant training and promotion bodies for conducting various training programs

across the state.

The mentioned policies support training and promotion programs instead of any fiscal benefits to

anyone.


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Low Cost Mechanization Development


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Low Cost Mechanization Development

So far in our country, 'Tractor' has been the major driver for agriculture mechanization. Designers and

manufacturers have been relying on tractor as a major source of farm power and thus we see that the

majority of the commercially available farm implements are tractor driven. However, as we all know,

Maharashtra agriculture is dominated by small and marginal farmers (Tab 2), whose smaller landholding

and weaker economic status render them ‘economically unviable' for single ownership of many of the

high-value agricultural machinery and equipments especially tractors, harvester, combine etc.

Therefore, we have to ‘relook’ and 'reengineer' farm mechanization so that we can effectively bring

small and marginal farmers in the fold of mechanization. The future of farm mechanization in India lies

in the success of design, development and easy availability of low-cost agricultural machineries and

equipments that would not only suit the requirements of our diverse natural resources but also match

the economic strength of the large and relatively low productive 'bottom of the pyramid' Indian

Agriculture.

Understanding the challenges and Right Technology for the small farmer:-

What a small farmer needs what the Maharashtra Has

� Low cost power equipment (Diesel plough)

cost less than Rs 75,000.

� Flexibility to use easily for rota-vators ,

water pumps, sprayers electricity

generation etc with low cost attachments

� Powered self-propelled implements for

weeding, tilling etc.

� High cost tractors (greater than Rs 1.4

lakhs per acre) and total cost greater

than Rs 4.5 lakhs.

� Modern implements at unaffordable

high costs.

� No availability

A simple machine has more impact than complex machine e g. cycle rickshaw

in cities and wheel barrows in village improves the production 7 to 8 times.


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Table-1 Number And Area Of Land Holdings In Maharashtra.

No. of Operational Land

Holding (lakhs) Area (lakhs Ha)

Farmers % %

Marginal 53.06 43.71 26.49 13.18

Small 36.06 29.71 51.27 25.5

Semi-Medium 22.74 18.73 61.09 30.39

Medium 8.65 7.13 48.8 24.27

Large 0.87 0.72 13.38 6.66

Total 121.38 201.03

*Area fig in ‘00’ ha Source:- MIDC report

We are focusing to improve the productivity of marginal< 2.4 acre farm (72 %) and small,

semi-medium farms 2.4 - 9.8 acre (19%).


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The need of the hour is to adopt a collaborative approach among industry players and the government

to benchmark relevant technology and engineer indigenous and cost-effective solutions. There are two

ways through which we can achieve the desired result:-

1. Adoption of low cost equipment

2. Custom hiring or Farm equipment bank

Adoption of low cost equipment:-

Some low cost farm equipment available in market.

S.No Name Of The

Equipment

Used For

Cost

Cost Of Operation Benefits

1 Self propelled Hydro

tiller Puddling in light and

medium soils

Rs 32,000/-

(including engine)

Rs 113/ acre

Field efficiency

75% and labor

requirement 20

man-h/2.4 acre

2 Low Land Manual Rice

Seeder

For sowing pre-germinated

paddy in puddle fields

Rs 1200/-

Rs 150/acre.

16% increase in

yield compared to

conventional

method

3 Manually Operated

Single Row Garlic

Planter

Row wise Garlic plantation

Rs 1,000/-

Recover the cost in

0.98 acre.

Improve the

quality of planting,

removal of human

drudgery during

planting.

4 CIAE 3-row Seed-cum-

Fertilizer Drill

Sow crops like wheat,

gram, sorghum, soybean,

pea, sunflower and drill

fertilizer

Rs 3000/-

Rs 49-152/acre

Operation cost is

very less as

compared to

conventional

method

5 Animal Drawn Jyoti

Multicrop Planter

For planting groundnut,

sunflower, soybean, pigeon

pea, bengal gram,

sorghum, wheat and maize.

Rs 7100/-

Rs 101/acre

Operation cost (Rs

101/acre) is very

less as compared

(Rs 365/acre) by

conventional

method


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Model 1:- Small and Semi-medium Farmers

A simple 5.5 HP Diesel Plough is an ideal range of Horse Power (HP) engine, which is best suited for

the small and medium size Indian farms. The technology used is simple and rugged and can be

repaired even by a cycle mechanic in a village. It is used for regular tillage operations for small land

holdings. It can plough seed, de-weed, spray, irrigate, etc. with matching accessories

Model 1 A: Owning a Diesel Plough for self usage

Comparison between conventional 35 HP tractor and 5.5 HP Diesel Plough is as below:- S.No Specification 35 Hp Tractor

(Conventional)

5.5 Hp Diesel Plough

1 Price 4 lakhs Rs.55000

2 Fuel Consumption 3.5liter/hour 1liter/hour

3 Maintenance Cost Rs 4250/Month Rs 1200/Month

4 Operations Perform Ploughing, cultivator

operation, rotovation, harrowing,

reaper application, threshing

Ploughing, cultivator

operation, rotovation,

harrowing, reaper

application, threshing


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Monthly Expenses of 35HP Tractor and 5.5 HP Diesel Plough

35 HP Tractors:- 5.5 HP Diesel Plough:-

S.No Expenses Rs/Month

1 Fuel @ 3.5ltrs/hour @

Rs.45/liter x 150 hrs.

(A)

23625

2 Lubricants/repairs

+maintenance and

depreciation (B)

3500

3 Total Expenses 27125

S.No Expenses Rs/Month

1 Fuel @ 1ltrs/hour @

Rs.45/liter x 150 hrs.

(A)

7200

2 Lubricants/repairs

+maintenance and

depreciation (B)

1200

3 Total Expenses 8400

Total annual expense of 5.5 HP Diesel Plough (Rs.100800) is approximately 300% less as compare to

the annual expense of 35HP Tractor (Rs. 325500).So we can say that Diesel Plough is the best suited

low cost equipment for small and semi medium farmer.


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Model 1 B: Entrepreneur Model (Owning a Diesel Plough for Renting):-

Single farm ownership and use of tractors and machinery on these small farms is not economically

viable. But through custom hiring of agricultural machinery even small farmers have been able to

get the benefit of agricultural mechanization.

Cycle rickshaws are a popular mode of transport not only in smaller towns and cities but also in

large metropolitan cities. This cycle rickshaw industry also runs on custom hiring model.

• Cost of a rickshaw= Rs 6,500 to Rs 8,000

• Average rent of a cycle rickshaw (maintenance cost inclusive) =Rs 25

• Average number of days a rickshaw plies =240 days

• Life of a rickshaw =5 years

• Profit per rickshaw per day on a new vehicle =Rs 18

• Payback period per rickshaw without interest =362 days

We can also use this (cycle rickshaw) model for renting farm agricultural equipment. Here we are

suggesting two models for custom hiring of farm equipment.

Cost Benefit Analysis for 5.5 HP Diesel Plough:-

Cost of Diesel Plough = Rs. 55000

Revenues

8 hrs/day x 20 days/month @ Rs 60/hr (average) =Rs. 9600/ month

Expenses

Fuel @ 1 liters/hour @ Rs.45/liter x 160 hrs. =Rs. 7200/ month --- A

Lubricants/repairs +maintenance and depreciation = Rs 1200/month ---B

Total Expenses (A +B) = Rs.8400/month

Total Outflow = Rs.8400/month

Profit = Revenue- Outflow

= Rs.9600/ month-Rs. 8400/month

=Rs.1200 /month/Diesel Plough

Profit of a small and semi-medium farmer is Rs.

1200/month/Diesel Plough.

Small or medium farmer can rent their diesel plough to marginal farmers or who ever need it (even

big farmers) and generate profit of Rs.1200/month/diesel plough.


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Model 2:- Land less farmer/BPL/SC/ST

Model 2 A: Hiring a diesel Plough

Farmer having marginal land <2.4 acre can’t afford to buy even Rs.55000 Diesel Plough but he can

avail its benefit by hiring it from semi-medium farmer or any entrepreneur from the village.

Cost of renting a diesel plough is Rs.60/hr.

Model 2 B: Entrepreneur Model

Maharashtra government should give a diesel plough free to at least one Landless farmer/BPL/SC/ST

and make him the agent for renting the Diesel Plough in every village in order to improve their

economical condition.

Suggested Policy for Farm Mechanization

There is no separate National Policy on Agricultural Mechanization. Here we are suggesting some

polices in order to promote farm mechanization so that the productivity of small farms will increase.


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Policy 1:-

Kit For Small Farmers/BPL/SC/ST:

The Maharashtra government should give an agriculture equipment kit to small farmers (<4.8 acre).

This kit would include basic mechanization tools which help farmers to increase their productivity

with less input cost (manpower, time).

The total cost of the kit would be approx Rs 5000, an example of a kit is mentioned below:

1. Wheel Barrow.

2. Shovel.

3. Jalli.

4. Drati.

5. Khurpa.

6. Kassi.

Population of Maharashtra 1123 lakh

Families in Maharashtra 187 lakh

45% of Total Population live in rural area 554 lakh

60% Families indulge in Agriculture Work 112 lakh

30% of the total Families indulge in

Agriculture Work are BPL/SC/ST

34 lakh

Total Cost = Cost of Kit * BPL/SC/ST Families indulge in Agriculture work

= 5000*35,00,000

=1750 cr

Kit Financer:-

1. State Government

2. Central government

Delivery Point of Kit:-

State Level

• MLA

• Gram Panchayat Level

Benefits :-

1. It will generate employment for local agriculture equipment manufacturer.

2. Increase the farm productivity from 15% to 20%.

3. It will also give positive impact on State Economy.


2012

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Policy2:- Innovation Fund

Innovations are the key to any new development and new achievement. Innovations in Agri sector

nobody seems to have thought of. There are some ideas like SHGs, contract farming, corporate

farming and also innovative technologies.

Innovations in Agri sector must be separately funded and the Union Agri Ministry must be proactive

to support and push the new innovative Agri technologies.

DST, Nasscom have created these funds for creative innovation, ideas and businesses. Why not in

Agri sector? To innovate many new agribusiness innovative ideas! Locate them in Agri universities, in

colleges, in private Agri business companies and for local farmer.

1. To demonstrate bankability of new concepts in agriculture and farm sector.

2. To extend support for developing proto-types and for further development to make it commercial.

3. To support activities connected with market survey for potential assessment/ market

acceptability for new Agri/rural products.

4. To provide support for acquiring innovative technology from reputed research institutions.

5. To extend support for obtaining patents for innovative technology/designs/ products.

6. To provide extension support for marketing/ dissemination of knowledge relating to new

products.

7. To support innovations in IT to take knowledge in different spheres to the rural areas.

8. To provide support on the analogy of venture capital for innovative ideas - technological and

managerial (like supply chain management) in farm sector for further development.

9. To support any activity which will further increase productivity, flow of credit, making

knowledge available to the villages which could result in improved living standards for the rural

poor.


2012

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Summary of Action for Increasing profitability of small farmers

Policy Approximate Budgets Envisaged Benefits

One round of free

distribution to the

small farmers of the

state

Rs 200 Cr Awareness and

firsthand experience

of the product and its

effect on agriculture

produce.

Initiate R&D for

development for new

and better products

and farmer education

and promotion of the

new and existing

products

Rs 2 Cr per annum Development of new

product for various

types of soils and

crops

Probiotic

Biotechnology

Application

Clarity on No

certification and no

Registration of the

product

Promote usage of the

product among farmer

& sale of product by

retailers etc

Creation of Cluster

Based Farming

Easier facilitate the

overall growth of the

sector

Organic Farming

Separate Mandi for

Organic produce

Separate facilities to

motivate and farmers

and also customers

Free Kit to small

famers/BPL/SC/ST

Rs 250 Cr To provide basic level

of mechanization

Low Cost

Mechanization

Development

Innovation Fund To acknowledge the

effort and encourage

other to build gadgets

for increasing

productivity


2012

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Gr-ow The Large Farmers

1. Grapes

2. Banana

3. Mandrin Orange

4. Onions

5. Tomato

6. Mango


2012

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Sr No Crop

State Average (

MT/ Ha)

Potential

Reported by

SAU( MT / Ha)

1 Grape 28.2 30

2 Bananna 58 87.5

3

Mandarin

Orange 9.1 15

4 Mango 3.5 15

Pillar 2: GR- Grow The Large Farmers

For Maharashtra six crops are potentially large. To make them world class in terms of variety, yield, and

price realization in both domestic and export market is the goal.

Specific strategies needs to be followed to strengthen and deepen Maharashtra‘s foothold in select

product categories: i.e. Yield Gap Analysis

1. Grape

2. Banana

3. Mandarin Orange

4. Onions

5. Tomatoes

6. Mango

Source: Maharashtra Horticulture Dept

Grapes: Grow new variety & crops to cater to international & local needs

Sr. No. Grape Variety Characteristics

1 Thompson Seedless Berries are oval to oblong in shape with T.S.S.18-22o Brix, acidity

0.5 to 0.7%

2 Sonaka Berries are elongated, cylindrical and amber coloured,T.S.S.

around 22 o Brix,acidity 0.4- 0.7%

3 Sharad Seedless Berries are oblong to elliptical in shape and bluish black in colour

with T.S.S. 18-21 oBrix and acidity 0.5-0.7%

4 Tas-e-Ganesh Berries are ovoid shaped and green to amber in colour with T.S.S.

20-22 o Brix and acidity 0.5- 0.65%

Domestic strengths for exporting grapes are enumerated in following paragraphs:-

• Grapes in India are mainly cultivated in tropical region of the country where vines are pruned

twice. Fruit pruning can be adjusted to harvest the crop as per the demand of the importing

country.

• Technology for production of Extra Class or Class I table grapes is available in the country.

• The grape growers of the country are very innovative and very much receptive to new

technologies and have registered with GLOBALGAP certification.

• Yields of grapes in India are highest in the world.

• Farmers of different regions have organized themselves by forming association/cooperatives

and thus transfer of technology is easy.

• Agri Export Zones for enhancing exports of grapes have been established.


2012

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• Farmers of Maharashtra state in cooperation with MSAMB have branded their product as MAHA

GRAPE

• The grape cultivators have research support from NRC for grapes, Pune, IIHR, Bangalore and

State Agricultural Universities.

• Grape growers in cooperation with MSAMB and APEDA have set up modern pack houses for

handling and packing of grapes for exports.

• APEDA has already set up a residue analysis laboratory at Pune for grape growing area of

Maharashtra in order to cater to phyto sanitary requirements of importing countries.

• Geographically India is at an advantageous position as compared to Chile, South Africa and Israel

for exporting grapes to South East Asian countries like Hong Kong, Singapore etc.

Local Level Scenario :

• Though currently Maharashtra ranks first in the production of grapes in India it is being closely

followed by Karnataka whose production was 3.18 Lakh tons in 2010, whereas Maharashtra was

at 4.4 Lakh Tons,

• Productivity of the Indian grapes is 8.3 MT/Ha, where as USA has the productivity of 17.5

MT/Ha

Share of Grape Exporting Countries

Source : Apeda

International Level Scenario.

• India ranks 15 in with the share of just 1.46% in terms of the world scenario for exports.

• There is a need for production of Imported IPR Varieties

• Productivity of the Indian grapes is 8.3 MT/Ha, where as USA has the productivity of 17.5

MT/Ha.


2012

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The Way Forward:

Maharashtra needs to accelerate growth of grape production through

• Bridging Yield gaps through

o Supply of quality input

o Effective extension

o Improving agricultural research & extension interactions

o Promoting FFS by Emphasizing skill transfer to staff as well as farmers

o Emphasizing soil Health Programme

Scenario after Specific Strategies

� Maharashtra maintains its leadership position among the Indian States.

� Investments in farm practices and variety towards improvement of Shelf Life of Grapes such

that the price points may be maintained longer in the market.

� More variety to meet the rising demands of the local as well as international markets

� Maharashtra to have the yield as per the potential reported by State agricultural

Universities (SAU).

� Maharashtra to help India achieve the target of being among the top 10 exporting country

within a period of 5 Years Horizon.


2012

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Banana

Banana varieties grown in

Maharashtra

Grand Naine, Shreemanti, Dwarf Cavendish, Basrai, Robusta, Lal Velchi,

Safed Velchi, Rajeli Nendran, Red Banana

Availability Round the year

Details of domestic strength of banana are as follows

• India is the largest producer of banana in the world.

• More than 32% of total banana production takes place in Maharashtra and Gujarat states.

• Rainfall and humidity are quite less particularly in Maharashtra and also to some extent in

Gujarat state, resulting in lesser incidence of insects, pests and diseases compared to Central

and South America and South East Asian countries.

• A superior cultivar namely Grand Naine, well accepted in international market is being cultivated

in sizeable area in Maharashtra and Gujarat states.

• Red banana cultivar which is preferred in some countries can create a market for itself with

support of display, campaign etc.

• Banana is cultivated in sufficient acreage and in different agro-climatic conditions and thus is in

a position to meet the large demands from importing countries on a continuous basis, provided

planting and cultivation is well planned.

• Transfer of technology is easy as growers have organized themselves by forming cooperatives/

associations and have branded their product as “Mahabanana”.

• Agri Export Zone for promoting exports of banana has been established in Maharashtra in

Jalgaon area.

• Post harvest handling facilities are available at a small scale at Navsari and Borsad in Gujarat

state.

• Banana Export Facility Center with mechanical handling system has been set up at Saavada in

Jalgaon and Basmantnagar in district Hingoli in Maharashtra state.

• Geographically, India is better placed compared to South East Asian, Central and South

American countries for exports to Gulf countries.

• Special training programmes need to be conducted to give knowledge to farmers about

production of export quality banana in Maharashtra.

Local Level Scenario:

• Currently Maharashtra ranks first in the production of Banana in India but it is followed very

closely by Tamil Nadu and Gujarat.

• Production of banana in Maharashtra was 52 Lakh Mt, Tamil Nadu was 49.81Lakh Mt and

Gujarat was 37.8 Lakh Mt in 2009-10.


2012

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Share of Banana Exporting Countries

Source: Apeda

International Level Scenario :

• India ranks No:1 with the share of 29% in terms of the world scenario for exports followed by

Philippines at 9 %.

• India need to learn for Indonesia(54 MT/ha) and Costa Rica(48MT/Ha) how to increase the

productivity / Hectares

The Way For ward:

• Maharashtra needs to accelerate growth of Banana production through

• Yield & Cropping area Improvement. It needs to insure that its position as No:1 is not

challenged.

• Maharashtra has to think in terms of servicing the processing Industry & make Investment in the

R&D for shelf life and newer variety to be abreast of competition

• Educating & providing of Quality Seeds along with the right farming techniques to increase the

productivity form 34.4 MT/Ha to at least 40 MT/ Ha in the coming five years to cater to the

international as well as the growing domestic demand.

Scenario After Specific Strategies

• Maharashtra retains it No:1 position,

• Investments in farm practices and variety towards improvement of Variety of Banana.

• More variety to meet the rising demands of the local as well as international markets

• Maharashtra to have the yield as per the potential reported by State agricultural Universities

(SAU).

• Maharashtra to help India maintain the No: 1 position among the exporting country for a period

of 5 Years Horizon.


2012

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Mandarin Orange

VARIETIES. The important varieties cultivated on a commercial scale are the 'Nagpur' orange, the

'Khasi' orange, the 'Coorg' orange, 'Desi Emperor' and the 'Sikkim' orange.


• Maharashtra clearly has an edge over other states in terms of mandarin oranges and leads by

200% in production in 2009-10; the state has lacking in terms of varieties and need to increase

its productivity.


• India shares the third position with Mexico and with the share of 6% in terms of the world

scenario for exports. Brazil Lead the pack with share or 28%

• Indian Oranges have productivity of 9 MT/Ha , whereas Indonesia has a productivity of

36.5MT/Ha and USA has productivity of 34.1 MT/ha

The Way For ward:

• Though Maharashtra is quite ahead from others states in the production of Mandarin Orange ,

MP is growing it very aggressively the production of the same .

• Coordination required between Agri and Food Safety for and tight domestic standards (the

Maharashtra Brand needs to be established)

• Investment in the R&D for more shelf life and newer variety to be abreast of competition

• Education & providing of Quality Seeds along with the right farming techniques to cater to the

growing Demand.



• Investments in farm practices and variety towards improvement of Variety of Mandarin Orange.



(SAU).

• Maharashtra to help India reach 10 % share among the exporting country for a period of 5

Years Horizon.


2012

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Onion

Onion varieties:

Bhima Red, Bhima Raj, Bhima Super, Bhima Kiran, Bhima Shakti, Bhima Shubra, Bhima Shweta, Baswant-

780, Pusa Madhavi, Arka Niketan, Arka Kalyan, Arka Bindu, Arka Pragati, Arka Pitambar, Arka Lalima (F1

hybrid), Arka Kirtiman (F1 hybrid), Phule Safed, Phule Suwarna,Phule Samarth, HOS-1, Agrifound Dark

Red, Agrifound Light Red, Agrifound White, L-28, Agrifound Rose, Agrifound Red (Multiplier), Line-355,

Udaipur 102, Udaipur 103, Punjab Naroya, Punjab White, Punjab Naroya, Punjab White ,VL-3 (Long

day), Akola Safed, Rajasthan Onion-1 and Aprita (RO-59).


• Maharashtra leads in onion production in India with the total share of 26% closely followed by

Karnataka at 19 %.

International Level Needs Scenario :

• India ranks 2nd

with the share of 16% in terms of the world scenario for exports, china lead with

20817295 MT production.

• India’s productivity is 16.1MT/Ha , wheras USA leads with 54.9 MT/Ha followed by Japan with

52.7 MT/Ha


2012

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The Way For ward:

• Maharashtra needs to grow more to remain at number one position or this position will be lost

soon to Karnataka.



• More focus to meet the rising taste demand of the local processing industry as well as the

international needs.


• Education & providing of Quality Seeds along with the right farming techniques to cater to the

international Demand.

• With focus on more productivity India should Target for number one position in world scenario

for exports share within 5 year of time



• Investments in farm practices and variety towards improvement of Variety of Onions.



(SAU).

• Maharashtra to help India reach 25% share among the exporting country for a period of 5 Years

Horizon.


2012

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Tomatoes

Tomato - Variety Characteristics

ARTH-3

ARTH-3 Plants determinate; fruits large, squarish round, deep red, compact;

uniform ripening, harvesting starts after 80-85 days and continues upto 160-180

days; gives an average yield of 88-95 tons/ha. Suitable for table purpose.

Avinash-2 Avinash-2 Heavy yielder, determinate, compact growing hybrid. Fruits semi

oblong, medium sized, good coloured, uniform ripening.

Pusa Hybrid-1

Pusa Hybrid-1 Plants are determinate; compact with good foliage cover and

prolific bearing; fruits are round, smooth and attractive. It has an added

advantage of providing tomato from June to mid July

Pusa Hybrid 4 Plants are determinate, compact with dark green foliage, good foliage cover;

fruits are attractive, round smooth, average weight of 70-80grams and it shows

uniform ripening, good for long transportation. Average yield 550 Qtl/Ha.

Vishal Arka

Vishal Arka Plants are determinate; fruits are round, firm, deep red with green

shoulder, average weight of 140 gram; tolerant to fruit cracking; matures in 160

days with an average yield of 75tons/Ha.

Domestic strengths for exporting tomatoes are given below:

• India stands at fourth position in production of tomatoes next to China, U.S.A. And Turkey.

• Maximum production of tomatoes takes place in Andhra Pradesh, Orissa, Karnataka,

Maharashtra, West Bengal, Bihar, Gujarat etc.

• Tomatoes are available for export throughout the year.

• High yielding F1 hybrids are being cultivated by farmers on a quite good scale.

• There is excellent research support from all the SAUs and National Research Institutes like

IIHR, Bangalore and IIVR (Indian Institute of Vegetable Research), Varanasi.

• Distribution of raised seedlings of F1 hybrids is quite prevalent and is getting popular among

vegetable farmers.

• APEDA has established a number of Agri Export Zones for vegetables namely in Punjab,

U.P., Gujarat, Bihar, Jharkhand and West Bengal for promoting exports of vegetables and

infrastructure for the same is being/has been set up.


• Maharashtra ranks third in production in India with 8.9% share of the total produced,

Karnataka leads with 12.7 % followed by Orissa at 11.2 at no two


2012

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International Level Needs :

1. India ranks 3rd

with the share of 9% in terms of the world scenario for exports, China Leads

with 25% share.

2. India’s Productivity is 19.6MT/ha, where as china’s productivity is 23.3 MT/ Ha , USA

Leading with 84.4 MT/Ha

The Way Forward:

• Maharashtra needs to grow more aggressively and must try to beat Orissa in 5 Years time to

take the number two position.



• Processing Variety of tomatoes needs more focus to meet the rising taste demand of the

local as well as the international needs.


• Education & providing of Quality Seeds along with the right farming techniques to cater to

the growing Demand.


• Maharashtra attains No:2 Position domestically,

• Investments in farm practices and variety towards improvement of Variety of Tomato

fulfilling the needs of the processing Industries.


• Maharashtra to have the yield as per the potential reported by State agricultural

Universities (SAU).

• Maharashtra to help India reach No:2 position with 10% share among the exporting country

for a period of 5 Years Horizon.


2012

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Mangoes

Varieties grown in Maharashtra Alphonso, Kesar, Payari, Vanraj, Rajapuri, Gulabi

Area under crop in Maharashtra 4,48,000 ha.

Maharashtra’s Production 6,46,000 MTs

Available in February to June

Domestic strengths for exporting mango from India are listed below:

• India occupies top position in total production among mango growing countries of the world.

• India cultivates a wide variety of mangoes; some of them are very colourful and attractive with

par excellence edible quality.

• Mangoes are cultivated with sizeable production in almost all the states i.e. Andhra

Pradesh,Uttar Pradesh, Maharashtra, Gujarat, Tamil Nadu etc.

• Transfer of technology for cultivation of mango is easy as in many states; farmers have formed

associations/cooperatives.

• In Maharashtra state mango growers are quite innovative.

• Agri Export Zones for facilitating exports have been established in almost all mango growing

areas.

• Packhouses on modern lines have been provided in all mango exporting regions i.e. in Ratnagiri

and Sindhudurg in Maharashtra and in Navsari and Borsad in Gujarat for Alphonso variety; in

Latur and Aurangabad for Kesar mango; in Saharanpur and Malihabad in U.P. for Dashehari and

Chausa mangoes.

• Facilities for facilitating mango exports like Post-harvest Management Centre have been

established at Malihabad and Saharanpur. Similarly a mango Export Facility Centre has been

established at Ratnagiri.

• Mango farmers of Alphonso and Kesar are already being trained in GLOBALGAP

Requirements

• Mango growers of Saharanpur have already branded their product as “NAWAB” mango.

• Facilities for Vapour Heat Treatment and irradiation for eliminating fruit fly have already been

set up.

• India is in advantageous position, as it is nearer to Middle East countries compared to

• Australia, Kenya etc. main suppliers in Middle East.

Local Level Scenario:

• Maharashtra lag in volume wise production of mangoes, Maharashtra is ranked 7th

in the India

states in terms of volume with just 4% share, Andhra Pradesh lead the production of mangoes in

India with 27% followed by uttar Pradesh with 23.88%


2012

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• Maharashtra is known for its Alphonso mangoes and it has kept its focus on this type of fruits

itself for domestic as well as International needs.

• Maharashtra needs to grow more variety.


1. India ranks No:1 with the share of 45% in terms of the world scenario for exports, China is

next with 10%

2. Productivity of the Indian mangoes is 7.0 MT/Ha, whereas Brazil leads with a productivity of

15.6 MT/Ha

The Way Forward:

• Maharashtra currently is focussed more on the Alphonso Variety which is also called the king of

Mangoes .There is a need for Maharashtra to grow more varieties to cater to the growing local

demand.


Maharashtra Brand needs to be established) Focus on local processing industry’s need should

catered

• Investment in the R&D for more shelf life and newer variety to be done

• Education & providing of Quality Seeds / Sapling along with the right farming techniques to

cater to the growing Demand.


• Maharashtra retains it No:1 position

• Investments in farm practices and variety towards improvement of Variety of Mangoes.



(SAU).

• Maharashtra to help India retain No: 1 position among the exporting country for a period of 5

Years Horizon.


2012

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aggr-Essive Supply Chain Interventions

1. Brand Building

2. Information Communication Technology

3. Enabling Farmer Company & Adopting Farm

Accounting


2012

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Pillar 3: Aggr-Essive Supply Chain Interventions

Maharashtra has achieved my many milestones in agriculture sector. Now further growth the state

requires a set of intensive action. These action set focuses on various areas of agriculture. The suggested

actions are

Brand Building

Maharashtra is known as the Agri & Industrial hub of India. While mango, banana, oranges, etc are some

of the best known fruit from the state has a rich and varied list of fruits, vegetables and herbs. Given its

unique growth levers Maharashtra should become the Horticulture production center of India. The state

should build a high quality brand image similar to the Champagne regions in France, the Swiss Alpine

regions or closer home, the Kerala brand in Ayurveda Therapy.

Several countries and states across the world have created brands (and even patented them

internationally) around specific food products produced in a region. Prominent examples of patented

brands are Swiss chocolates. While chocolates are made all over the world, Swiss chocolates command a

premium amongst chocolate lovers regardless of the actual manufacturing company. Similarly countries

like Java and Costa Rica have created brand images for their coffee. Closer home Darjeeling Tea has

acquired brand status and is now being promoted actively by the government of India. A recent success

story is the Dilmah Tea from SriLanka.

Maharashtra as a brand for nature fresh high quality horticulture produce will requires a holistic state

level approach to ensure stringent monitoring and quality certification processes at all levels of food

production, education of farmers to improve farming techniques, better distribution, marketing and

logistics infrastructure, better infrastructure for pre and post harvest processing and packaging and a

planned branding approach for the state.

Case Study: Washington Apples – A Case of Increase in Consumption through Marketing &

promotion


2012

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Learning & Recommendations:

• Maharashtra should initiate consumer awareness of the Maharashtra brand produce like grapes,

mangoes etc.

• Maharashtra should appoint a PR, trade marketing & merchandizing agency to carry out various

promotions like road shows, free sampling etc.

• Consumer promotion through road shows, kiosks, free sampling should be conducted.

• Maharashtra should participate in International food events e.g. Gulfoods, FHA Singapore, Fresh

Summit, Asia Fruit Logistica etc to initiate awareness among large International buyers.

• International markets should be studied to understand the consumption pattern (demand) of

various produce and also the availability (supply) of the produce.

• At domestic level participation of regional food summits to be carried out e.g.- Processed Food

Outsourcing Summit AAhar etc.

• The consumption pattern of the produce should also be studied at domestic level and produce could

be promoted for specific usage. E.g. In case Maharashtra mangoes are good for some recipe then

the promotion campaign should be designed accordingly to promote usage.

Benefits

1. A branding strategy for the state will help it to differentiate its produce from the other states or

countries, given the favourable image with relation to horticulture produce that it has established in

the consumer’s mind over the years.


2012

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2. Branding will help in identification of the produce with the state resulting in lower marketing costs

and a better distribution mechanism as against the effort required to market several smaller

individual brand

3. Branding will help in giving a sense of identity to the growers and help in better farming and quality

techniques before the marketing of the produce itself. A case in point is that of Amul where the

owners take pride in their involvement in the milk revolution.

Agri Focus Knowledge Center Cum Convention center

This would be a permanent location for Food company exhibitions center and training center for farmer

education on food processing. This is supposed to be linked to Food parks in the state.

They would also act as knowledge dissemination center for government scheme, market information

etc.

Example of some similar successful implementation:

M. S. Swaminathan Research Foundation (MSSRF)

MSSRF was one of the first organizations to set up information technology centres in rural areas as a

means of providing farmers access to various kinds of information. MSSRF seeks both to generate

relevant content – for which it has set up the Jamsetji Tata National Virtual Academy (NVA) - and to

disseminate it through Village Resource Centres (VRCs) and Village Knowledge Centres (VKCs)

The Village Knowledge Centre concept consists of a three-tier system using a hub and spokes model: the

national hub, block hubs and VKCs. The national hub is located in Chennai and connects several data

providers including universities, agricultural experts and financial institutions. VRCs form the second tier

and are located at the block level. They are linked to MSSRF through teleconferencing and satellite

connectivity provided by the Indian Space Research Organization (ISRO). Each VRC is linked to

approximately 40 VKCs that are used to disseminate information at the village level. As of 2009-10,

MSSRF had developed 15 VRCs and 101 VKCs in five states: Tamil Nadu, Puducherry, Maharashtra,

Orissa and Kerala.

The kinds of content generated and transmitted through this network include information on

government schemes; agricultural best practices for farmers and cattle owners; weather forecasts for

farmers and fishermen; and market price information. MSSRF also runs training programs on computer

skills through these centres. MSSRF has also developed three mobile applications: ‘Fisher Friend’ that

provides updates on government schemes, fishing zones and early warning weather alerts; ‘IKSL Airtel

Green Sim Card’ through which it provides audio advisories related to agriculture, animal husbandry and

government schemes; and an application that provides audio and text advisories to NABARD Farmers’

Club members. These applications reach approximately 200,000 farmers and fishermen on a daily basis.

Learning & Recommendations

• Annual conference on Horticulture

• Permanent training on food processing and technology usage.


2012

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• Maharashtra should also have prototype of machine and technologies for new product testing.

• Maharashtra should establish a net work of Village Knowledge Center (VKC), headed by block hubs

which will be situated in District head quarters.

• Information will be provided to Block hubs which will be then disseminated through VKCs.

• VKCs would provide information on:

o Domestic & International market information in terms – demand volume, price, demand

variety

o Best practices by farmers

o Government schemes and policies

o Government supported Infrastructure

Benefits

• To empower the base level farmer

• To support the basic level understanding on various crops

• Increase profitability

Adoption of Information and Communication Technology (ICT)

Information technology is used to reduce information asymmetries and gaps in ways that assist farmers

and entrepreneurs. It usually leverages the widespread adoption of mobile technologies to lower costs

of collecting and disseminating information on prices and growing practices.

ICT adoption interventions would happen at two levels:

1. Farm level – Computer management is possible given the high literacy of Maharashtra and

the technology adoption exhibited by the farmers.

2. Mandi level – Networking Agriculture Mandi of Maharashtra

Farm level adoption

IT has proved to be a performance booster in all sectors but farm level adoption was low due to the

existing literacy rate of farmers. But Maharashtra exhibits a high rate of adoption of newer technology.

Considering this unique feature along with the high literacy rate this seems to be the best time for

encouraging farmer for IT adoption at farm levels.

This would involve free internet connections to the computer owned farmers. The farmers should be

Trained on internet usage and other Agri related software like plantation management, track and trace

etc. The target for this should be the large and developed farmers rather than marginal and smaller

farmers.


2012

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The proposed financial model for the same is as followed:

Approx 10 lakh farmers with computers will be given free internet connection for periods of 3 Years.

Cost of the Internet @ 299 Monthly unlimited MTNL / VSNL Plan = Rs.3588 Pa

= 10 Lakh farmers * Rs 3588 = Rs.358 Cr p.a.* 3 year = Rs.1076 Cr.

Relevant Software for plantation management & farm Track n Trace @ Rs. Rs.10, 000/- onetime cost

10 lakh farmers * Rs.10,000 = Rs.1000 Cr ( Over a period of 3 years time )

Networking of Agriculture Mandis in Maharashtra

Maharashtra with its large fertile land and good water resources has variety of crops but post harvest

the farm output undergo transportation and change of hands before reaching actual customer. The total

supply chain is an unorganized process and leads to deterioration in quality and therefore increases

wastage.

NABARD - Strengthening rural infrastructure


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Key Concern

• Lack of seamless supply chains cause high value losses

• A & B category mandis lack vital inter linkages

• C & D category markets are not developed due to:

o Low annual arrival/ throughput, consequently, does not have economic threshold

• Lack of organized service providers- poor service levels

• Inadequate access to banks, restricted availability of credit to farmers

• Lack of information price, demand and stocks: Distorted price discovery mechanism and scope for

hoarding


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Existing Supply Chain

In India the supply chain has 4-6 intermediate movements of produce as against 2 in US.

Therefore development of an organized supply chain is key need for improvement of farmer’s

throughput and cost realization through sales of Agri-produce. Development of organized supply chain

involves up gradation of stakeholders and bringing up of new infrastructure. This development will ramp

up the total supply chain from “Farm to Market”

Some support infra structure to organize stakeholders in the value chain of Farm to Market.

The total development would be done with an objective of:

Establish cost effective and efficient Supply Chain Infrastructure for agriculture goods to ensure:

1) Adequate storage and QA infrastructure

2) Shorter and seamless supply chains

3) Lower transaction costs

4) Enhanced value addition to all stakeholders


2012

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The execution process will be guided by the below mentioned principles:

1) Protect interests of ALL existing stakeholders

2) Shortening of Supply Chains

3) Break information barriers

4) Leverage technology with capacity building

5) Facilitate private investment to maximize value for money to public investment


2012

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Illustrative Delivery

System

Advantage of Integration

• Uniform grading system

o Certified quality and quantity to end users

o Enhanced comfort to bankers due to uniformity in the system

• Access to online platform for farmers, traders and other stakeholders

o Commodity financing

o Implementation of Negotiable warehouse receipt system and make tradable

o Spot and future trading at Mandi premises


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• Enhanced transparency & accuracy in information

o Error-less automatic reporting & capturing of huge data base for further research and

analysis

o Reduced pilferage and leakages

o Timely collection of Mandi fee

• Increased efficiency and reduced post harvest loss due to better support infrastructure in the mandi

areas

o Warehouse and cold storage

o Drying, cleaning, sorting, grading unit

o Banking, Agri-inputs centre

o Decentralization of business from main mandi to C & D class mandi

“Trace” & “Track” – Across Supply Chain

• Acting as a tool for communication by making information available along the Supply Chain

• Tracing the source and cause of a quality issue to prevent recurrence

• Building trust throughout the food chain by setting up preventive measures

• Allowing differentiation and effective efficient logistics, product authentication, anti-

counterfeiting policies, waste management.


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Benefits to Stakeholders

• Farmers

o Enhanced Liquidity options through NWRs

o Secured payment settlements

o Standardized Quality & Certification prior to trading

o Help farmer earn enhanced value of the product

o Price discovery in Mandi is more dynamic (Lower info barriers)

o Cultivate crop for markets away from physical reach

• Traders

o Low cost overheads since no physical handling of product

o Increased exposure to buyers across Mandis


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• Buyers

o Better information on Price and stocks across Mandis

o Wider pool of suppliers

o Hassle free procurement – Door Delivery through LSPs

o Certified Quality & Quantity through Third Party product certification

Suggested Way Forwards

• A detailed RFP to be prepared for inviting all major players to develop plans and execute a pilot for

this project.

• The interested player should be analyzed for selection.

• Various models of working models like PPP model etc should be considered.

Some examples of leveraging technology:

Logistimo

Logistimo is a social enterprise that has developed a low-cost supply chain management solution which

combines an online web platform that can be accessed via a website or a mobile phone. Although it has

not been used for agricultural solutions – their main use so far has been in tracking public health

campaigns and distribution of medicines - this is one of the main sectors that they are targeting.

Logistimo enables semi-literate users with minimal training to capture and transmit data in a low-cost

way through the internet or Short Messaging Service (SMS). They also have phone-based applications

that enable basic low-cost mobile phones to be used as devices that can provide point-of-sale, order

management and transportation dispatch data. Thus, by using only low-cost mobile phones, Logistimo

users can get real-time data on orders, inventory levels, and transaction history from their collection and

distribution networks.


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• Maharashtra to link all mandis for creating a network which is assessable even by a remotely located

farmer.

• Improve the efficiency of supply chain by introducing Track & Trace method for consignments.

• Create an intelligent warehousing system by keeping track of inventory available etc.

Digital Green

Digital Green leverages the simple concept that farmers are more likely to adopt growing

practices that are used by their peers. The organization develops and disseminates videos of

farmers explaining and demonstrating a range of best practices. The recordings are made by

experts at the grassroots level – scientists from government institutions, NGO experts, field staff,

and progressive farmers – but the videos are recorded in local languages and dialects, and local

farmers, individually or in groups, usually act in the videos.

Digital Green disseminates content by shipping DVDs to villages and has tied up with seven non-

profit organizations - PRADAN, BAIF, Samaj Pragati Sahayog, ACCESS, Action for Social

Advancement, PRAGATI, and VARRAT – to display these videos in multiple sites within target

villages and interact with farmers to promote adoption of best practices. As of January 2011,

80,986 farmers across six states in India - Andhra Pradesh, Bihar, Jharkhand, Karnataka, Madhya

Pradesh, and Orissa – had seen these videos.


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Enable framework of Farmer Company & Farm Accounting System

Concept of Farmer Company

The structure of co-operative and associations existing have a group of farmers came together and

creating a legal entity for supporting the common cause. This legal entity is entitled to avail benefits

given to the agriculture sector company.

But the need now is to professionally manage the co-operatives and associations. This will support the

groups to manage external relationships in a better manner. Currently the relationship/interaction is

limited to negotiate with government but this professional company would enable them to interact,

negotiate and close deals directly with the consumer companies.

In this arrangement a co-operative and a group of professionals would come to gather to form a

“Farmer Company”. This farmer company overall should be entitled to avail benefits of an agriculture

company. The legal structure could be an LLP or co-operative.

Case Study: Janarth

Janarth is an Aurangabad-based organisation that has been working on agriculture support for a number

of years. Its interventions have been principally in 3 areas.

— Input supply. Janarth runs a chain of shops that sells seeds, fertilisers, pesticides and other inputs to

farmers. This intervention brings a range of benefits to the farmers – timely availability, assured quality,

reasonable prices, in parts or portions that the farmers can afford and close to the farmers’ doorstep,

thereby reducing his transportation costs. These centres are a source of reliable information on a

number of issues and also help benchmark prices. This intervention covers about 3,000-4,000 farming

families covering 10,000-15,000 acres.

— Marketing of produce. Janarth is a registered adat in the local mandi and by participating in the daily

auctions helps provide the best price to the farmers. It also is a trading house and so actually buys up

the produce if there are no other takers. This operation benefits about 3,000-3,500 families in the

region.

— Value addition. Janarth has set up a 30 MT per day pulses processing plant and a 8 MT per day grain

cleaning unit which is fed from some of the purchases made by the trading house. It sells the output

through its trade channels in has set up in Maharashtra, Gujarat and MP and has also floated its own

unregistered brand. This unit makes a marginal profit (its objective is not profit maximization) and is

hence self-sustaining.


• Maharashtra should make the concept of Farmer Company as legal entity.

• The farmer company should be able to avail the benefit of an agriculture company.


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Benefit to farmers

There are benefits for farmers to work with food companies:

— Opportunities for product diversification. From producing what they know, farmers can diversify

their crops to grow what the market needs, and hence creating more choices.

— Access to market information. As a corollary of the earlier point, such relationships can bring more

direct information to farmers on market needs, prices etc.

— Stability of income. By tying up with food companies, farmers can de-risk their incomes and make it

more predictable. This is particularly interesting because some studies suggest that farmers prefer

predictable if lower income to one which is more volatile, even if the potential incomes are higher,

simply because of the limited risk-taking capacity.

— Access to technology and improved farming methods. There is sufficient empirical evidence to

suggest that food companies are willing to invest in improving productivity and quality of the produce

they procure from their suppliers to ensure security of supply. Also, food companies that insist on their

suppliers adhering to verifiable standards are also willing to invest in their suppliers.

Farmer Company

Co-operative

/ farmer

Association

Company of

Professional

managers

International

customers

Government Future plans

for growth


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Farm Accounting

Objective:-

To facilitate small and marginal farmers to learn how to maintain an Accounting system that will enable

them to have a better visibility for-

1. Potential revenue- cost drivers across their core Farm and allied economic activities.

2. Aid in decision making

3. Create a practice of maintaining data on all critical core-farm related/ allied income generation

activities (beehiving, vermicompose, bio-gas, poultry, and dairy-related activities) not to

mention cost drivers for same.

Why do you need an Accounting system?

1. To get a better sense of costs ( direct and indirect, variable) and potential revenue streams

based on crop cycle/ pattern, acreage, likely risks(pest attack, priceless that cost of production.,

low yield etc.)

2. Assets and liabilities of the farm at any point of time

3. PROFIT AND LOSS estimation and deriving actual of the farm yearly.

4. Help farmers in creating a Database that will give pointers / aid in taking other decisions,

namely-

A). to hire or buy a plough for tilling, weeding, harvesting and threshing,

B). Replacement of cattle, machinery, new farming technique, farm size addition impact, low

level produce processing etc.

5. Aid in Data generation and simple report preparation for submission to co-ops banks/ local

lenders (s-term- few months etc.) from angle of debt servicing ability and working capital needs

assessment/ farm equipment and other related services providers ( drip irrigation, soil testing,

veterinary agencies etc. )

6. Facilitate in having discussions with sourcing agents/ consolidators/ processors/ inputs providers

for farm and non-farm rev. generation activities ( likely to help in cluster/ co-operative farmers

group approach) when

To create an Accounting System, this will help the farmers to get used to the concept of RECORD

KEEPING of all data pertaining to your core/ allied farm activities on a day-to day basis.


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Introducing the concept of a “ Diary” system maintenance:-

The RECORD KEEPING:-

A simple concept of bookkeeping that captures the following:-

1. Payments to be made to parties on different dates.

• Either the actual amt. borrowed/ amount with interests and late payment dues ( based on

mutually agreed terms by lender)

• Mile-stone payments ( if any) – provisioning for same

• Amount taken as Credit against inputs for core-farm and allied activities (supporting the

farm) and others.

2. Assets- fully owned/ partially-owned/ lease based – Agri-equipments, storage units etc.( account

for depreciation that can be booked)

3. Stock (of produce/ inputs etc) in hand – seeds, fertilizers, growth controllers, pesticides used by

crop-specific use.

4. Cost incurred for various activities (crop mgmt. / support)-> labor costs for soil

preparation/seeding/weeding etc. and support drivers like vermicompose production., water

mgmt. ( watershed maintenance) and irrigation systems in place. Not to mention providing

allowance for exigencies based on norms/ measures.

Thus, the broad Accounting will consist of following registers:-

1. Cash book

2. Assets ( fixed/ seasonal)

3. Loan

4. Stock

5. Debtors/ creditors status

6. Personal use register ( based on produce self-consumed/ exchanged with other farmers on

barter type system)

7. Cost mgmt. ( for core farm, support activities and related activities like poultry, beehiving,

greenhouses)

Conclusion:

The state has been strong in horticulture produce but with growing competition the need now is to

initiate strategies which will support the growth and retain the leadership position in Agri sector (6 key

crops).

The proposed strategies are envisaged to be implemented over a period of 3 -5 years.

The Confederation of Indian Industry (CII) works to create and sustain an environment

conducive to the growth of industry in India, partnering industry and government alike

through advisory and consultative processes.

CII is a non-government, not-for-profit, industry led and industry managed organisation,

playing a proactive role in India's development process. Founded over 117 years ago, it is

India's premier business association, with a direct membership of over 6600 organisations

from the private as well as public sectors, including SMEs and MNCs, and an indirect

membership of over 90,000 companies from around 400 national and regional sectoral

associations.

CII catalyses change by working closely with government on policy issues, enhancing

efficiency, competitiveness and expanding business opportunities for industry through a

range of specialised services and global linkages. It also provides a platform for sectoral

consensus building and networking. Major emphasis is laid on projecting a positive image of

business, assisting industry to identify and execute corporate citizenship programmes.

Partnerships with over 120 NGOs across the country carry forward our initiatives in

integrated and inclusive development, which include health, education, livelihood, diversity

management, skill development and water, to name a few.

CII has taken up the agenda of “Business for Livelihood” for the year 2011-12. This converges

the fundamental themes of spreading growth to disadvantaged sections of society, building

skills for meeting emerging economic compulsions, and fostering a climate of good

governance. In line with this, CII is placing increased focus on Affirmative Action, Skills

Development and Governance during the year.

With 63 offices including 10 Centres of Excellence in India, and 7 overseas offices in

Australia, China, France, Singapore, South Africa, UK, and USA, as well as institutional

partnerships with 223 counterpart organisations in 90 countries, CII serves as a reference

point for Indian industry and the international business community.

Confederation of Indian Industry105 Kakad Chambers, 132 Dr Annie Besant Road, Worli

Mumbai - 400 018Phone : +91 22 24931790

Fax : +91 22 24939463 / 24945831www.cii.in

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