Maharashtra: PRO- GR-ESSIVE Agricultural A New Horizon

Transcription

1 Pascheem speaks 2012 Maharashtra: PRO- GR-ESSIVE Agricultural A New Horizon A 3 pronged Agricultural Strategy for Maharashtra

2 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

3 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 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 mm in 101 days Laterite. PH 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 Page 2

4 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 Soil type Crop and cropping pattern II Very high rainfall zone with non lateritic soils Comprises of Thane & Raigad districts. Total area 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 Vegetablesbrinjal, 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 Soil type Crop and cropping pattern 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 mt Maximum temp. ranges from C. Minimum temp ranges from C 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. 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 Soil type Crop and cropping pattern 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 C and minimum C 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. Page 3

5 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 lakh ha. The gross & net cultivated area is 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 days. Which is affected due to 1) delayed onset of monsoon 2) early cessation of monsoon? Maximum temperature 41 C minimum 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. 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 Soil type Crop and cropping pattern 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 lakh ha.net area sown is 8.86 Lakh ha. Water availability ranges from days.maximum temperature 40 C & minimum 5 C. Well distributed rainfall 700 to 1200 mm. Topography is plain. Soils grayish black.moderately alkaline , 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. Page 4

6 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 Soil type Crop and cropping 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 Grains, Pulses & Oil seeds: Jowar is a predominant crop occupying 33% of gross cropped area cotton %. 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. Moderate Rainfall Zone 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 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 lakh ha geographical area & lakh ha net cropped area. Maximum temperature C Minimum temperature C Average daily humidity 72 % in rainy season, 53 % in winter & 35% in summer 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 Climatic conditions Average 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 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. Page 5

7 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 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 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. Page 6

8 Small land Holdings The land utilization pattern of the state: Net Area Sown, , 56% *Area fig in 00 ha Other Fallow, 12041, 4% Forest, 52122, 17% Current Fallow, 13271, 4% Barren & uncult., 17198, 6% Non- Agril use, 14069, 5% Culturable Waste, 9137, 3% Permanent Pasture, 12524, 4% Misc.Trees & groves, 2488, 1% No. of Operational Land Holding (lakhs) Area (lakhs Ha) Farmers % % Marginal Small Semi- Medium Medium Large Total 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 In 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. Page 7

9 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 Grapes Banana Onion Tomato Mandarin Orange 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 Eighth5 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. Page 8

10 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 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 f. Taluka Seed Farm g. Horticulture nurseries h. Bio- control lab - 10 i. Pesticide Testing Labs 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 Page 9

11 One Floriculture park One Mega Food Park and Three Food parks. Two Wine Parks - 54 wineries One Vapour Heat Treatment Plant One Eradiation Plant 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 *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. Page 10

12 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 km in the state against 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. No. MANGO PRODUCTION (year ) BANANA PRODUCTION (year ) State 1 Andhra Pradesh Area Production (' 000 MT) Productivi ty ( MT/ ha) No. State (' 000 (' 000 ha) ha) Maharashtra Area Production (' 000 MT) 2 Uttar Tamil Nadu Pradesh 3 Karnataka Gujarat Bihar Andhra Pradesh Productivit y ( MT/ ha) 5 Gujarat Karnataka Tamil Nadu 7 Maharas htra Madhya Pradesh Total Total *Source: Indian Horticulture Database-2010 Page 11

13 No. GRAPES PRODUCTION (year ) MANDARIN ORANGE PRODUCTION (yr 09-10) State 1 Maharashtr a Area (' 000 ha) Production( ' 000 MT) Productiv ity (MT/ ha) No. State Area (' 000 ha) Production( ' 000 MT) Maharashtra Karnataka Madhya Pradesh Tamil Nadu Assam Andhra Pradesh Rajasthan Punjab Mizoram Others Total Total *Source: Indian Horticulture Database-2010 Productivit y ( MT/ ha) ONION PRODUCTION (year ) Tomato Production ( ) No. State Area Production Productivity No. State Area Production(' Productivity (' 000 MT) 000 MT) (' 000 ha) (MT/ ha) (' 000 ha) ( MT/ ha) 1 Maharashtra Andhra Pradesh Karnataka Karnataka Gujarat Orissa Bihar Maharashtra Madhya Pradesh West Bengal Total Total *Source: Indian Horticulture Database-2010 Page 12

14 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 Page 13

15 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 Page 14

16 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 Page 15

17 Leveraging Pro-biotic Biotechnology for Increasing Productivity Of Agricultural Land For Small Farmer Page 16

18 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 agroecological 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. Page 17

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20 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 s / 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 % depending upon the crops Page 19

21 Reduces Pesticide consumption % reduction in usage of pesticides due to better immunity Reduces Fertilizer Consumption % 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 Cost of Cultivation per Acre Pesticides Fertilizers and Manures Does not require much pesticide. Not sensitive to pests 6000 for fertilizer and 1600 for MGS Other Irrigation, electricity etc Price Realization per acre Post Harvest Losses and cost Incurred Gross Margin per acre Biotechnology product s share of increase profit Total % ( Rs. 1733) Increase of 15-20% in yield Cost of XXXXX price of Rs 1600 per acre Page 20

22 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 N 2 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. Page 21

23 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. Page 22

24 Organic Farming - The Next Frontier Of Farming In Maharashtra Page 23

25 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. Page 24

26 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: Myth Reality Implication Organic produce has challenges of taste, shelf life and physical characteristics Organic produce is better quality produce with higher shelf life Both in terms of shelf life and higher revenue Organic is the emerging key word Organic produce is only viable for certain crops Organic production is happening for all crops and processed food Organic is available in almost all categories and in all forms There is limited market availability of Organic products 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 Whatever is put on shelf is being sold. Customers are willing to buy everything that reaches them Organic products sell at 2-3 times premium 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 All Organic produce is selling at a premium. With increasing players and decreasing operational cost the margins are shrinking Page 25

27 Knowledge and Infrastructure: Myth Reality Implication 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: Myth Reality Implication 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 vermicompost 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 Page 26

28 Economics: Myth Reality Implication 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 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 timedaily attention is a key issue Lower yields in first three years is hardly a deterrent for farmers Time management and extra labor is a deterrent only for lease farms Organic crops are more susceptible to diseases and pests If proper methods are followed actual performance of organic has been same or better All crops need precaution and attention Page 27

29 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: 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 days days Yield/ hectare tones 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 Page 28

30 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 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. Page 29

31 Area under organic certification process and number of registered farmers ( ) o Area under Organic cultivation o Area registered for certification o Certified area o Area Under Conversion o Total Vermi compost units o Total Bio Dynamic Compost Depot o Identified service Providers o Developed Model Organic Farms o Major Crops : 6.50 Lakh Ha : 1.14 Lakh Ha : 0.42 Lakh Ha : 0.72 Lakh Ha : 1.26 Lakh : 2.02 Lakh : 91 NGO s :37 Farms : 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. Parameter Cotton Wheat Other cereals Pulses Oil seeds Spices Fruits/ve getables Herbal/ medicin al othe rs Quantity (tones) Area lakh ha) (in 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. Page 30

32 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 Cotton ,50,000 Wheat Fruits+Vegetables ,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 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 percent of the total farm produce that reaches the market is accounted as state organic output whereas 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. Page 31

33 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 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. Page 32

34 Low Cost Mechanization Development Page 33

35 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 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. what the Maharashtra Has 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. Page 34

36 Table-1 Number And Area Of Land Holdings In Maharashtra. No. of Operational Land Holding (lakhs) Area (lakhs Ha) Farmers % % Marginal Small Semi-Medium Medium Large Total *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 acre (19%). Page 35

37 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 2 3 Low Land Manual Rice Seeder Manually Operated Single Row Garlic Planter Puddling in light and medium soils For sowing pre-germinated paddy in puddle fields Rs 32,000/- (including engine) Row wise Garlic plantation Rs 1,000/- Rs 113/ acre Field efficiency 75% and labor requirement 20 man-h/2.4 acre Rs 1200/- Rs 150/acre. 16% increase in yield compared to conventional method 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 /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 Page 36

38 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) 1 Price 4 lakhs Rs Fuel Consumption 3.5liter/hour 1liter/hour 5.5 Hp Diesel Plough 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 Page 37

39 Monthly Expenses of 35HP Tractor and 5.5 HP Diesel Plough 35 HP Tractors:- 5.5 HP Diesel Plough:- S.No Expenses Rs/Month S.No Expenses Rs/Month 1 Rs.45/liter x 150 hrs. (A) Rs.45/liter x 150 hrs. (A) Lubricants/repairs +maintenance and depreciation (B) Lubricants/repairs +maintenance and depreciation (B) Total Expenses Total Expenses 8400 Total annual expense of 5.5 HP Diesel Plough (Rs ) is approximately 300% less as compare to the annual expense of 35HP Tractor (Rs ).So we can say that Diesel Plough is the best suited low cost equipment for small and semi medium farmer. Page 38

40 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 Revenues 8 hrs/day x 20 Rs 60/hr (average) =Rs. 9600/ month Expenses 1 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. Page 39

41 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 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. Page 40

42 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 34 lakh Agriculture Work are BPL/SC/ST 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. Page 41

43 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 commercia 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. Page 42

44 Summary of Action for Increasing profitability of small farmers Policy Approximate Budgets Envisaged Benefits Probiotic Biotechnology Application 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 Clarity on No certification and no Registration of the product Rs 2 Cr per annum Development of new product for various types of soils and crops Promote usage of the product among farmer & sale of product by retailers etc Organic Farming Creation of Cluster Based Farming Easier facilitate the overall growth of the sector Separate Mandi for Organic produce Separate facilities to motivate and farmers and also customers Low Mechanization Development Cost Free Kit to small famers/bpl/sc/st Innovation Fund Rs 250 Cr To provide basic level of mechanization To acknowledge the effort and encourage other to build gadgets for increasing productivity Page 43

45 Gr-ow The Large Farmers 1. Grapes 2. Banana 3. Mandrin Orange 4. Onions 5. Tomato 6. Mango Page 44

46 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 Sr No Crop State Average ( MT/ Ha) Potential Reported by SAU( MT / Ha) 1 Grape Bananna Mandarin 3 Orange 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 % 3 Sharad Seedless Berries are oblong to elliptical in shape and bluish black in colour with T.S.S obrix and acidity % 4 Tas-e-Ganesh Berries are ovoid shaped and green to amber in colour with T.S.S o Brix and acidity % 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. Page 45

47 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. Page 46

48 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. Page 47

49 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 Page 48

50 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. Page 49

51 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. Local Level Scenario : Maharashtra clearly has an edge over other states in terms of mandarin oranges and leads by 200% in production in ; the state has lacking in terms of varieties and need to increase its productivity. International Level Scenario : 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. Scenario After Specific Strategies Maharashtra retains it No:1 position, Investments in farm practices and variety towards improvement of Variety of Mandarin Orange. 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 reach 10 % share among the exporting country for a period of 5 Years Horizon. Page 50

52 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). Local Level Scenario : 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 2 nd with the share of 16% in terms of the world scenario for exports, china lead with 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 Page 51

53 The Way For ward: Maharashtra needs to grow more to remain at number one position or this position will be lost soon to Karnataka. Coordination required between Agri and Food Safety for and tight domestic standards (the Maharashtra Brand needs to be established) More focus to meet the rising taste demand of the local processing industry as well as the international needs. 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 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 Scenario After Specific Strategies Maharashtra retains it No:1 position, Investments in farm practices and variety towards improvement of Variety of Onions. 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 reach 25% share among the exporting country for a period of 5 Years Horizon. Page 52

54 Tomatoes Tomato - Variety Characteristics ARTH-3 Avinash-2 Pusa Hybrid-1 Pusa Hybrid 4 Vishal Arka ARTH-3 Plants determinate; fruits large, squarish round, deep red, compact; uniform ripening, harvesting starts after days and continues upto days; gives an average yield of tons/ha. Suitable for table purpose. Avinash-2 Heavy yielder, determinate, compact growing hybrid. Fruits semi oblong, medium sized, good coloured, uniform ripening. 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 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 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. Local Level Scenario : 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 Page 53

55 International Level Needs : 1. India ranks 3 rd 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. Coordination required between Agri and Food Safety for and tight domestic standards (the Maharashtra Brand needs to be established) Processing Variety of tomatoes needs more focus to meet the rising taste demand of the local as well as the international needs. 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. Scenario After Specific Strategies 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. 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 reach No:2 position with 10% share among the exporting country for a period of 5 Years Horizon. Page 54

56 Mangoes Varieties grown in Maharashtra Area under crop in Maharashtra Maharashtra s Production Available in Alphonso, Kesar, Payari, Vanraj, Rajapuri, Gulabi 4,48,000 ha. 6,46,000 MTs 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 7 th 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% Page 55

57 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. International Level Scenario : 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. Coordination required between Agri and Food Safety for and tight domestic standards (the 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. Scenario After Specific Strategies Maharashtra retains it No:1 position Investments in farm practices and variety towards improvement of Variety of Mangoes. 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 retain No: 1 position among the exporting country for a period of 5 Years Horizon. Page 56

58 aggr-essive Supply Chain Interventions 1. Brand Building 2. Information Communication Technology 3. Enabling Farmer Company & Adopting Farm Accounting Page 57

59 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 Page 58

60 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. Page 59

61 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 , 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. Page 60

62 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: Benefits 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 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. Page 61

63 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 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 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 Page 62

64 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 Page 63

65 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 Page 64

66 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 Page 65

67 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 Page 66

68 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, anticounterfeiting policies, waste management. Page 67

69 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 Page 68