Problems and prospects of privatization of extension services

Transcription

1 Problems and prospects of privatization of extension services Prabhjot Kaur Dept. of Home Sci. Extension and Communication Management Punjab Agricultural University, Ludhiana, India Pankaj Kumar Assistant Professor,KVK, Nurmahal (Jalandhar) Punjab Agricultural University, Ludhiana, India Dr Kanwaljeet Kaur Dept. of Home Sci. Extension and Communication Management, Punjab Agricultural University, Ludhiana, India ABSTRACT Extension services are mainly funded and delivered by government in Indian context. But, there are private players, who also fund and deliver extension services. This process of funding and delivering the extension services by private individual or organization is called Private extension. Public extension services are widely viewed as supply driven rather than demand driven. Public extension deals with a large area, large population and diverse cropping pattern. Extension services provided are general in nature rather than specific and intensive. The extension worker: farmer ratio is very wide in India i.e. 1: The primary reason behind the agricultural extension privatization was found to be the declining trend in government expenditure for extension in several countries over the last decade. Financial burden have forced governments to make sharp reduction in the budget of public extension programmes. Commodity based farmers organizations are operating; focusing not only on production but also processing and marketing.farmers need information on a wide range of topics and their demand for agricultural information is not uniform across producers or regions. Advice from a privatized system may be more effective because the farmers can select an advisor who is best able to help.sometimes big farmers often bypass extension agents in preference for direct contact with research scientists. By charging they will come to know the value of extension worker. Privatization of agricultural extension services has the disadvantage that it may hamper the free flow of information.unlike public extension the private sectors services are primarily interested in sales of its agricultural inputs including seeds, agro-chemicals, etc. at higher rates which increase the cost of production. There is a need for the collaboration of public and private extension efforts to serve the diverse target population of the farmers. Krishi Vigyan Kendras (KVKs) should act as a coordination and liaison between the farmers, government agencies and private sector involved in rural development. INTRODUCTION The Green Revolution has been the foundation of India s agricultural achievement, transforming the country from one of food deficient to self-sufficient (Anonymous 2001). India owes a lot to its scientists and extensionists in making the country self-sufficient in case of food grains production, taking the benefits of green revolution (Reddy and Rao, 2001). Many serious problems for agriculture sector are heavy demand for food, declining cultivated area due to population pressure, stagnating agricultural productivity due to natural resource degradation, increased competition in international markets, poor irrigation and water management, environmental deterioration, inadequate development of agro-processing units and inadequate marketing of agricultural products, etc. Though, agriculture sector contributes about 24.7 per cent of the national gross domestic product (GDP) and > RJSSM: Volume: 03, Number: 09, January-2014 Page 89

2 provides employment to about 57% of the total work force (Sulaiman 2003). One fundamental element in meeting these challenges is the adoption of improved agricultural production technologies and marketing techniques by farmers and other concerned entrepreneurs. However, this places greater responsibility on the agricultural extension sector, since it is a vital channel for proper dissemination and adoption of new agricultural technologies to farmers as well as a channel back to researchers and policy makers regarding farmers problems, needs and concerns. The human and financial resources available to agricultural extension are the two major key elements for the success of agricultural extension organizations in their endeavor. The success of agricultural development in general and agricultural extension in particular depends largely upon the quality and quantity of human and financial resources available within the organization (Bahal 2004). Presently, no state government can provide required number of field level workers, because of the limitations of budget. Therefore, in the government sector there is a problem of providing sufficient and well trained manpower, allocating required funds for the development purpose, lack of specialization to guide the farmers in some of the entrepreneurial activities such as seed production, mushroom cultivation, floriculture, vermi-compost, off-season vegetables, dairy & many others. This has created more opportunities for private sector. The process of functioning and delivering the extension services by private individuals or organizations is called private extension.. CONCEPT OF PRIVATIZATION Privatization is the act of reducing the role of government or increasing the role of private sector in an activity or in the ownership of assets (Savas, 1987). The extension services are mainly funded and delivered by government in Indian context. But, there are private players, who also fund and deliver extension services. This process of funding and delivering the extension services by private individual or organization is called Private extension (Shekara 2001). There are many different ways in which farmers can contribute to the costs of a privatized extension services:- They can pay a fee for each visit to an extension agent makes to their farm and for any other service the extension agent provides, which is also the way consulting firms are paid. A levy can be charged on certain agricultural products from which agricultural research and extension are financed. However, it is easier to collect from some products than from others. Cost can be met from membership fees paid to a farmers association. The difficulty with this approach is that not all the farmers will belong to the association. Non-members also get benefit from the extension service through informal communication with members who are visited by extension agents. The extension worker can receive a specified portion of the extra income, a farmer earns as a result of advice given by an extension agent, for example from a yield increase greater than the regional average. Such a scheme requires a reliable farm accounting system which cannot currently be achieved. (Van Den Ban and Hawkins 1997) Privatization is used in the broader sense of introducing or increasing private sector participation, which does not necessarily imply a transfer of designated state-owned assets to the private sector. In fact, various cost recovery, commercialization, and other so-called privatization alternatives have been adopted to improve agricultural extension (Swanson et al 1998). Privatization as a system of agricultural extension is gradually being adopted in Indian agriculture because of the following reasons: > RJSSM: Volume: 03, Number: 09, January-2014 Page 90

3 1. Handicapness of the public extension to reach all the farmers, all the time, regarding all problems has created the space, which is gradually filled by private extension. 2. A shift in agriculture from subsistence level to commercialized agri-business and increased specialization among farmers. 3. To meet the challenges of globalization and liberalization of the farm sector. 4. Demand of the farmers for specialized knowledge, information and assistance. 5. The services which are not fully covered by public extension are covered by private extension. PROBLEMS IN PUBLIC EXTENSION SYSTEM The following are some of the problems in public extension system:- 1. Public extension services are widely viewed as supply driven rather than demand driven. 2. Public extension deals with a large area, large population and diverse cropping pattern. Extension services provided are general in nature rather than specific and intensive. 3. High cost, growing conflicts between farmer s interest and policy goals, poor motivation of staff and conflicting roles are observed in public extension. 4. Insufficient face to face contact between extension workers and farmers. 5. Inadequate funds for operational purpose. 6. Incomplete extension services. 7. Inadequate internal organization structure. 8. Lack of resources with extension personnel. 9. The extension worker: farmer ratio is very wide in India i.e. 1: (Shekara 2001) NEED OF PRIVATIZATION The primary reason behind the agricultural extension privatization was found to be the declining trend in government expenditure for extension in several countries over the last decade. Financial burden have forced governments to make sharp reduction in the budget of public extension programmes (Van Den Ban and Hawkins 1997) Privatization represents one of several alternatives to activate the inefficient or budget starved public extension services. Extension service has been an important input for agricultural development in most developing countries including India, where agriculture remains the only source of revenue for millions of rural poor. Today, agriculture consultants and large number of consultancy firms are catering to the needs of hi-tech agriculture, large holdings and commercial and irrigated crops. Commodity based farmers organizations are operating, focusing not only on production but also processing and marketing. Advancement in the areas of information and communication technology helps the farmer a lot and commercial agriculture needs more investment, latest technologies and various inputs like seeds, fertilizers, etc which are provided by a large number of private players. Hence, the independent farmer of yesterday is dependent on many players than ever before. Indian farmer is looking for more profit through his agriculture means. It may be through low cost technology, high production technology, value addition, good marketing or through any other ways. Changing-cropping trend and emergence of contract farming. Need to earn more from smaller holdings. Private extension systems should play a complementary role so that all sectors of farmers get the required support at the right time and in the right form. Farmers need information on a wide range of topics and their demand for agricultural information is not uniform across producers or regions. > RJSSM: Volume: 03, Number: 09, January-2014 Page 91

4 REVIEW OF THE STUDIES CONDUCTED ON PRIVATIZATION IN INDIA De and Sahu (2001) observed that there is a great scope for privatizing fisheries extension in areas of high growth potentials viz. intensive carp culture, ornamental fish breeding and culture, pearl culture, feed manufacturing, fish processing, product development and value addition, etc. They further reported that small scale aquaculturists should continue to be served by public sector whereas the commercial aquaculturists should be asked to pay for the services. Kalra and Virk (2002) stated that majority of the farmers (80%) ready to pay soil testing fee, ware houses fee (80%), 50 per cent of the farmers were in view of privatization of electricity provided regular power supply shall be ensured, regarding certified and quality seed majority of the farmers (92%) were ready to pay its cost. It is true in consultancy services for raising new beneficial crops and its marketing e.g. commercial floriculture, vegetable production etc. Singh (2003) studied the opinion of Punjab Kisan Club members and reported that most of the farmers agreed to privatize the technical extension services for cash crops (32 %), flower cultivation (40.67), plant protection measures (39.33%), seed propagation (60.67%) and dairy farming (46 %) in categories of food crops, horticultural crops, agronomic practices, seed production and subsidiary occupation. Majority of the farmers were of the view that the small and marginal farmers would not be able to pay against private extension services. Extension contacts and operational land holdings of the farmers were positively and significantly correlated with overall scope of privatization of agricultural services. Tiwari (2003) studied the attitude of Agricultural Development Officers (ADO) towards privatization of agricultural extension services in Punjab and reported that majority of the ADOs suggested privatization in the areas of plant protection measures for the cultivation practices of flowers, technical extension services about post-harvest technology, most of the officers suggested privatization in subsidiary occupations. Regarding the perceived constraints, majority of the officers perceived that it will be difficult for small and marginal farmers to pay for the extension services availed by them, collaboration among the different development departments due to privatization will be less. Privatization of extension services will lead to increased cost of production. ADVANTAGES OF PRIVATIZATION Advice from a privatized system may be more effective because the farmers can select an advisor who is best able to help. The farmers are likely to prepare questions more carefully in order to make best use of the advisor s time for which farmer has to pay. The success of agricultural development in general and agricultural extension in particular depends largely upon the quantity and quality of human and financial resources available within the organization, which private companies may have in abundance. Sometimes big farmers often bypass extension agents in preference for direct contact with research scientists. By charging they will come to know the value of extension worker. DISADVANTAGES OF PRIVATIZATION Privatization of agricultural extension services has the disadvantage that it may hamper the free flow of information. Farmers may be less inclined to tell their colleagues, what they have learned from the extension agents as they do not like free riders. Privatization really amounts to take away of possessions of government very carefully in a undetectable manner. This path for privatization has come from corporate sector, not from > RJSSM: Volume: 03, Number: 09, January-2014 Page 92

5 public. Furthermore, apart from the economic benefits of gaining access to public invested capital, the corporate sector also stand to increase its political power through privatization. (Davidson and Ahmad 2003) Unlike public extension the private sectors services are primarily interested in sales of its agricultural inputs including seeds, agro-chemicals, etc. at higher rates which increase the cost of production. Extension agents in a privatized extension service are inclined to focus on the large farmers who can afford to pay of their fees. Subsistence farmers will seldom be able to pay this fee. The private extension services will concentrate on topics for which farmers are willing to pay a fee, e.g. farmers will be more inclined to pay for information on the right pesticide to cure a plant disease than for education about how to prevent degradation of the environment, farmer organizations development or those issues related to sustainability of resources. Even though, the latter topics may be more important for them in the long term. SUGGESTIONS FOR PRIVATIZATION OF AGRICULTURAL EXTENSION SERVICES A successful privatization programme should have a vision of its goals resulting in a clear mission statement and formulation of a strategy and flexibility in managing the change process. For an effective changeover, it is advisable to privatize in a phased manner without affecting the interests of farmers (clients) and the existing service providers. The following suggestion for privatization of agricultural extension services are:- Collection of a nominal charge from the beneficiaries which may be increased gradually in the coming years. Financing by organizations engaged in agro processing and input delivery industries feed manufacturers, private manufacturers, farm implements, etc. At initial stages, the government can provide grants/subsidies to projects in this field till farmer become self-sustainable. Creation of corpus funds raised from the fees for the services which has to be spent on research and development and extension of new technologies. Gradual autonomy for the agencies engaged in extension like creation of extension boards with a clear direction that they should become self-sustainable in a given time-frame eventually leading to full autonomy with zero funding by the government (Rajashree 2005) There is a need for the collaboration of public and private extension efforts to serve the diverse target population of the farmers. Krishi Vigyan Kendras (KVKs) should act as a coordination and liaison between the farmers, government agencies and private sector involved in rural development. The emphasis should be given on development of women, small and marginal farmers through private extension supported by public extension. To achieve this, extension projects need to be formulated for women, small and marginal farmers. Public extension system should consider introducing partial cost recovery for extension services with reference to specialized and demand driven technologies. CONCLUSION Privatization of agricultural extension system should not be seen as an alternative to public extension system. It can get a greater success in the areas of hi-tech and commercial aspects. The infrastructure and the extension already available should be strategically deployed to improve the efficiency of the public extension system. Private extension systems should play a complementary role so that all farmers get required support at right time in the right form. Due attention needs to be given to the challenges that have been mentioned for reaping the results of privatization of agricultural extension. Privatization should not be recommended for all the extension services and practices. > RJSSM: Volume: 03, Number: 09, January-2014 Page 93

6 REFERENCES Anonymous 2001 Policy Framework for Agricultural Extension. Extension Division, Department of Agriculture & Cooperation. Bahal R (2004) Agricultural Research and Extension Systems, p 21. Concept Publishing Company, New Delhi. Davidson A P and Ahmad M 2003 Privatization and the crisis of agricultural extension, p 2. Ashgate Publishing Ltd, Burlington, USA. De H K and Sahu B B 2001 Privatizing Fisheries Extension - Policy Implications. In : Shekara P C (ed) Private Extension in India Myths, Realities, Apprehensions and Approaches. pp National Institute of Agricultural Extension Management, Hyderabad. Kalra R K and Virk G S 2001 Privatization of Agricultural Extension Services in Punjab An Experiment. In : Shekara P C (ed) Private Extension : Indian Experiences, pp MANAGE, Hyderabad, India. Reddy P G and Rao P P 2001 Privatization of Agricultural Extension An Analysis. In : Shekara P C (ed) Private Extension : Indian Experiences. pp MANAGE, Hyderabad, India. Savas E S 1987 Privatization: The key to better Government, pp 3-10.Chatham House Publisher Inc, New Jersey. Shekara P C 2001 Private Extension: Indian Experiences, pp MANAGE, Hyderabad, India. Singh M 2003 Opinion of Punjab Kisan Club Members about Privatization of Agricultural Extension Services in Punjab, M. Sc. Thesis, Punjab Agricultural Univeristy, Ludhiana, India. Sulaiman V R 2003 Innovations in agricultural extension in India, p 1. National Centre for Agricultural Economics and Policy Research, Indian Council of Agricultural Research. New Delhi. Swanson B E, Bentz R P, Sofranko A J 1998 (Ed) Improving Agricultural Extension - A reference manual. Food and Agriculture Organization of the United Nations, Rome. Tiwari D 2003 Attitude of Agricultural Development Officers towards Privatization of Agricultural Extension Services in Punjab, M. Sc. Thesis, Punjab Agricultural Univeristy, Ludhiana, India. Van Den Ban A W and Hawkins H S 1997 Agricultural Extension. pp Blackwell Science Ltd., Australia. > RJSSM: Volume: 03, Number: 09, January-2014 Page 94