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Agri in India growth rate 8-9 per cent; All India average 3.1 per cent
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Friday, 19 December, 2014, 08 : 00 AM [IST]
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Raman Singh Saluja
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fiogf49gjkf0d India is a country of fertile lands and capable farmers. Technology is the catalyst that promises to drive more than 400 million people living on less than $1.25 a day out of poverty. Over 42% of the Indian population lives on less than $1.25 a day. However, if farmers could increase their output and earn more from what they already have through the use of innovative technology, food insecurity could decrease and that same dollar and a quarter could go much further.
However, increasing farm returns have be addressed both in terms of increasing productivity through higher yields at competitive input prices and also increasing high realisable returns through better storage facilities, availability of warehouse receipts (WR), finance to enable him hold the crop, access to value addition, and finally, ability to sell with ease at fair prices.
Madhya Pradesh is known as the Heart of India. It is the second-largest state by area and sixth- largest state by population. Agriculture is one of the main factors boosting its economy. About 73 per cent population of the state is rural, which directly or indirectly depends on agriculture. It plays an important role by contributing immensely to the economy.
Progress impressive
In the agriculture sector as a whole, progress has been impressive. From a sluggish growth rate of 1.5-2% in the 80s, the sector has made rapid strides growing at the rate of 8-9%, faster than the all India average of 3.1%. Through irrigation facilities, improved technologies and farm-practices, the state has achieved a growth rate of 18.96% during 2011-12 with efficient utilisation of rain-fed areas. Production of cereals went up by 43%, of pulses by 54% and of cotton by 10%, oilseeds production grew by 143% (from 2.24 million tonne to 5.45 million tonne).
The state possesses large tracks of cultivable virgin wastes as well as untapped irrigation potential. It now expects entrepreneurs with vision and commitment to harness the potential of this sector. Entrepreneurs can gainfully contribute in improving this sector to fulfill their business aspirations as well as for the prosperity of the state. Long term leasing of land for agriculture should be actively explored, as farm size, mechanisation do have a bearing on the production costs.
Fragmentation challenge
Fragmentation of land is a very challenging issue as evidenced by the increasing number of small land holdings in the state. The average land holding in MP declined from 2.02 hectare in 2005-06 to 1.78 hectare in 2010-11 as against the all India average of 1.16 hectare. Marginal and small farmers account for more than two-thirds (71%), and they hold around one-third (34%) of the total area. This restricts farm mechanisation, affecting production and productivity. Depletion of ground water resources also poses as a major challenge for the state.
Problems like warehousing and storage of the agricultural produce have also been on the rise in the state. A lot of agricultural produce gets wasted because of the unavailability of adequate storage facilities, thus, it is an issue that needs to be addressed. Even sourcing good seeds is a concern for the farmers.
Technology can help farmers to augment their knowledge of which crops to produce for the best return, find the most effective farming practices and make plans based upon weather forecasts. Most of the new technology is either in terms of inputs and nutrient application, or hardware – precision farming and mechanisation, which need a higher investment from the farmers – agriculture being a very dynamic sector is dependent on multiple factors and all need to fit in well to truly give the farmers a magical year. Which rarely happens?
A lot of the initiatives have focussed on offering information online to farmers, on better practices etc., which have a purpose – we believe a complete integration can add value like none other.
Planned investment
We need foot soldiers on the ground to inspect and see the crop. Clicking pictures and sending for advise is one possible way – still the solution needs a product which needs to be delivered, on time and at a good price. After a good harvest, the farmer needs to store it properly and be able to sell in a manner where avoidable costs can be removed. This again needs infrastructure and mechanisms. Technology will play a great role in agriculture but the reality is we cannot SMS (short messaging service) products. Agriculture requires handling, storage and delivery. This needs a lot of planned investment to build a network of facilities.
Another example of agricultural technology is the use of drip-irrigation, which cuts water usage by 40%, and saves the equivalent of 10 million households’ water expenditures per year. Usage of soluble and liquid nutrients too ensures better yields and targeted application.
Advances boon
Genetically modified crops are also gaining popularity among farmers. These are plants whose DNA (deoxyribose nucleic acid) has been modified using genetic engineering techniques. It is mainly done to introduce a new trait in the plant which is not naturally present.
Thus technological advances are proving to be a boon for farmers in India. From developing genetically modified seeds that ensure better produce to developing fully equipped warehouses for storage of the produce, technology is convincingly helping the farmers in every way possible. This is sure to continue with ongoing technological developments in the field of farming. We need the government to recognise and come out with a policy initiative which is constructive and promotes efficiency on the input side as well as output.
(The author is managing director and founder, Gramco Infratech)
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