Post Harvest Technology

(Advances In Agriculture)

Session 2 1
• The two main objectives of applying postharvest technology to harvested fruits
and vegetables are to maintain quality (appearance, texture, flavour, nutritive
value and safety) and to reduce losses between harvest and consumption.

• Effective management during the postharvest period, rather than the level of
sophistication of any given technology, is the key in reaching the desired objectives

• While large scale operations may benefit from investing in costly handling
machinery and high-tech postharvest treatments, often these options are not
available to small-scale handlers for the simple reason of economies of scale.
Instead, simple, low cost technologies can be more appropriate for small volume,
limited resource commercial operations, farmers involved in direct marketing, for
home gardeners, as well as for handlers in developing countries

Session 2 2
Post Harvest Processes
• 1. HARVESTING
• 2. PRE-COOLING
• 3. SORTING
• 4. WASHING
• 5. WAXING/CHEMICAL TREATMENT
• 6. SIZING
• 7. PACKAGING
• 8. STORAGE
• 9. TRANSPORTATION
• 10. WHOLESALER
• 11. RESTORING, RESIZING & REPACKAGING
• 12. TRANSPORTATION
• 13. RETAILER
• 14. CONSUME Session 2 3
1. PRE-COOLING

• Removal of field heat from commodities, also reduces bruise damage from
vibration during transit. Cooling requirement varies with the air
temperature during harvesting, stage of maturity and nature of crop.
• COOLING METHOD COMMODITY
• Room cooling- All fruits and vegetables
• Forced air cooling -Fruits and fruit type vegetables, tubers and cauliflower
• Hydrocooling -Stem, leafy vegetable, some fruits and fruit type vegetables
Package icing Roots, stem, some flower type vegetables, green onions and
brussel sprouts
• Vacuum cooling- Some stem, some flower type vegetables
• Transit cooling -Mechanical refrigeration Top icing & channel icing
Session 2 4
2. WASHING, CLEANING AND TRIMMING
• Cleaning methods includes removal of soil dust, adhering debris,
insects and spray residues, fungicides like Diphenylamine (0.1-.025%)
or Ethoxyquin (0.20.5%) may be used as superfical scald. For cleaning
of some fruit type vegetables (melons, brinjals, tomatoes, cucumber)
they should be wiped with damp cloth. Some vegetables need
trimming, cutting and removal leaves or other vegetative parts

Session 2 5
3. SORTING, GRADING AND SIZING
• Sorting done by hand to remove fruits which are unsuitable to market
and storage due damage by insects, diseases or mechanical injuries.
Remainder crops is separated into two or more grades on basis of
colour, shape or visible defects. For example, in apple packaging in
India; its graded in 3 grades viz. Extra Fancy, Fancy and standard
maybe packaged for marketing. The fourth being ‘’cull’’ grade is
meant for processing. After sorting and grading, sizing is done either
by hand or machine. Machine sizer works on two principles- weight
and diameter. Sizing based on fruit shape and size are most effective
for spherical (Oranges,Tomato) and elongated (European pears).

Session 2 6
4. CURING

• Effective operation to reduce water loss during storage from hardy

vegetables viz. Onion, Garlic, Sweet potato and other tropical root
vegetables. Curing of root and tuber crops develops Periderms over
cut, broken or skinned surfaces wound restoration. Helps in healing of
harvest injuries, reduce loss of water and prevents infection by decay
of pathogens. Curing of onion and garlic are done to dry necks and
outer scales, the bulbs are left in the field after harvesting under
shade for a few days until the green tops, outer skins and roots are
fully dried.

Session 2 7
5.WAXING
• Quality retention is a major consideration in modern fresh fruit
marketing system. Waxes are esters of higher fatty acid with
monohydric alcohols and hydrocarbons and some free fatty acids.
Waxing reduces transpiration and respiration rates, but other
chemicals such as fungicides, growth regulators, preservatives can be
incorporated specially for reducing microbial spoilage, sprout
inhibition etc.

Session 2 8
6. PACKAGING

• Proper packaging reduces wastage of commodities by protecting

them from mechanical damage, dirt, moisture loss and other
undesirable physiological changes and pathological deterioration
during the course of storage, transportation and subsequent marketing.
• Packaging cannot improve the quality of the product but helps in
maintaining it, as protects against the hazard of the journey.
• To provide uniform quality to packed produce, commodity should be
carefully supervised and sorted prior to packaging.
• Packaging boxes- wooden crates, woven baskets, jute sac, plastic
punnets, corrugated fibre board boxes.
Session 2 9
7. TRANSPORTATION
• The main aim of transportation is to move perishable products with
minimum loss of quality. Most transportation equipment controls air
temperature around the product.
• Horticultural produce maybe carried by road, rail, sea or air.
• High value perishables are transported by air
• Ship- frozen meat, chilled carrots packaged in blocks and cartons
• Principles of ventilation, refrigeration, modified atmosphere applying
to transportation similar to storage

Session 2 10
Processing In India

Session 2 11
Income group classification
Aspirers and Middle Class groups are expected to rise

With majority of consumption lying

Population (% of total population) Annual Income with the Middle Class and
Aspirers, these two groups are
25 million (2%) Above US$60,000 per annum expected to play a critical role
4 Mn Households in the development of
Rich processed food
industry in
Between US$12,000–US$60,000 India
164 million (13%) Middle class per annum
28 Mn Households

Between US$5,400–US$12,000 per

431 million (34%) Aspirers annum
75 Mn Households

Less than US$ 5,400 per annum

647 million Deprived
(51%) 114 Mn Households

Source: NCAER (National Council for Applied Economic Research); Average household size in India: 4.8
NCAER reports income levels at 2001-02 prices; to bring these to current prices (2010-11) income levels, a conversion factor of 2.7 has been
taken to adjust the nominal per-capita income growth.
Session 2 12
Changing Trends in Consumer Preferences for
Food
• Growing middle class population and household incomes are driving people to spend more on food

• Increasing cases of lifestyle diseases have resulted in shift towards healthier food options such as fruit juices, pro-biotics,

cereals and oats

• Shift in consumption preferences & increasing demand is driving the food companies to introduce innovative products

such as digestive biscuits, fortified dairy products, etc.

• Increased demand for processed & packaged products with high shelf-life

• Willingness to pay a premium for value-added products such as cheese, butter, flavoured milk

• Overall change in palate and preference for newer varieties of food due to western influence

Session 2 13
Key Markets and Product Preferences

• West
• North
• South
• East

Session 2 14
Distribution Formats for Food Products in India
Retail Formats

Modern Format Traditional Format Institutions

➢ Super Marts ➢ Neighborhood general ➢ Railways and Airlines

➢ Hyper Marts store ➢ Hotels, Restaurants and

➢ Bakery Shops Catering (HORECA)
➢ Convenience Stores
➢ Canteen Store
➢ Food Gourmet Stores
Department
➢ Petro- Convenience
➢ Others (Schools,
Stores
Colleges, Offices and
➢ Cash and Carry Hospitals)

Session 2 15
Processing Levels for Key Segments in the FPI

Session 2 16
Processing Stages for Various Products
Primary Secondary processing Tertiary
processing processing
Ketchups, jam, juices and
Fruits & Vegetables Cleaning, sorting and cutting Slices, pulps and paste
pickles

Cottage cheese, cream, Processed milk, spreadable

Milk Grading and refrigerating
simmered & dried milk fats, yoghurt

Meat & Poultry Sorting and refrigerating Cut, fried, frozen and chilled Ready-to-eat meals

Marine products Chilling and freezing Cut, fried, frozen and chilled Ready-to-eat meals

Biscuits, noodles, flakes,

Grain and seeds Seeding and grading Flour, malt and milling
cakes, savory
Tea bags, flavored coffee,
Sorting, bleaching and
Beverages Leaf, dust and powder soft drinks, alcoholic
grading
beverages

Session 2 17
Food Processing Demand Drivers
Increasing spending on food products

Increasing urbanization – lifestyle Growing nuclear families and

and aspirations working women

Food Processing
Demand Drivers

Changing demographics – Rise Rising demand for functional

in disposable incomes food (oatmeal, etc)

Increasing modern trade formats

and private label penetration

Session 2 18
SWOT ANALYSIS

Session 2 19
Activity
• Write 5 competitors (companies) in following sectors-
1) Dairy
2) Fruits and Vegetables
3) Meat, Poultry & Marine Processing (2 only)
4) Consumer Foods (Beverages, snacks etc.)

Session 2 20
Case : Blue Skies
Introduction
In June 2014, Anthony Pile, founder and chairman of Blue Skies, called a board meeting to
discuss the company’s development plans. The economic crisis in Europe had made
consumers more price sensitive, putting pressure on profit margins and spurring the search
for new markets. Founded in 1998, Blue Skies was a fruit processing company
headquartered in the U.K., with production operations located in Ghana, Africa. It cut and
packaged fruits sold primarily to retailers in Europe. Relying on air-freight transport, it
shipped produce within 48 hours of harvesting. The company was born from the idea that
fruit tastes best when it is naturally ripe and consumed fresh from source. From the outset,
Blue Skies selected only the best fruit harvested by local farmers, and processed and
packaged it at source without using additives, artificial flavors or preservatives. This
guaranteed the highest quality for consumers, who could enjoy fresh fruit that was in the
farmer’s fields a mere two days earlier. Since its inception, Blue Skies had grown rapidly
and expanded its operations across three continents. Beyond the U.K., the company had
built businesses in Europe with retailers in France, Holland, Italy and Switzerland. It was
present in Egypt and South Africa, as well as in Brazil, from where Pile expected its
production operations to open up opportunities in North America.

Session 2 21
Background
In Europe, rising incomes and greater attention to healthy eating had boosted demand for
fresh produce. Consumers were increasingly buying high-quality fresh fruit and vegetables
all year round. The market for prepared (cut and packaged) fruits was one of the most
rapidly growing segments in the E.U. grocery sector, at around 20 per cent per year. As with
prepared vegetables, the biggest market in Europe was the U.K., where prepared fruit sales
were estimated at $24 million in 1999.2 While working as Managing Director of another
fruit processing company based in the U.K., Pile came up with the idea of cutting and
packing fresh tropical fruits in their country of origin and airlifting them to retailers within
48 hours. At the time, most fruits were imported by sea and then processed in factories
about two weeks after being harvested. Pile’s vision was to offer ‘fresh from harvest’
ready-to-eat fruit by reducing the lead time from ‘farm to fork’, taking advantage of air-
freight exports from Northern Europe that had developed with cross-border trade and
economic liberalization in West Africa. Freight operators were looking to collect
northbound cargo to fill their empty planes flying back to Europe. Among West African
countries, Ghana offered several advantages including cheap air freight and a direct route
to major European markets..

Session 2 22
• With freight costs at about $0.70 per kg compared to $1.5 to $2 from the other
countries supplying Europe with fruit and vegetables, Ghana enjoyed a
competitive edge that was particularly favorable to establishing an export-
oriented, fresh-cut business. Pile’s initial idea was to export freshly cut slices of
pineapple, one of the most popular tropical fruits in the U.K. Considered the ‘king
of fruits’ along with bananas, pineapple was in demand among consumers who
appreciated its nutritional qualities as well as taste. Fresh pineapple exports to
Europe had steadily increased as consumer enthusiasm for fresh fruit grew and
sea transport with container cooling systems developed. In 1998, Ivory Coast was
the largest fresh pineapple exporter, with 141,600 tons and an estimated market
share of 54 per cent. It was followed by Costa Rica (79,022 tons; 30 per cent) and
Ghana (18,969 tons; 7 per cent). Unlike the other countries, Ghana air-freighted a
large proportion (45 per cent) of its pineapples, carving out a significant niche in
the European market as a primary supplier of top-quality products. Although sea
freight cost up to four times less.

Session 2 23
Problem 1
• What do you think Anthony would have done to reduce the air
transportation cost as the cost of transportation by sea is just 1/4th ?

Session 2 24
Further…
Setting up the operation, Pile found the industry to be fragmented.
There was virtually no cooperation among smallholders and little
coordination between the larger farms in the production process.
Cooperatives or producer associations did not exist and mechanisms to
ensure a constant supply of pineapples across the production base
were almost non-existent. Production surpluses were frequent and
smallholders increasingly went back home with pineapples ordered by
farmers who did not show up to collect the agreed harvest.

Session 2 25
Problem 2
• What do think can be done to reduce the fragmentation in the
industry and ensure regular supply of produce to blue Skies ?

Session 2 26
 Advances in Agriculture
Sustainable agriculture, Organic Farming & Precision Farming
Sustainable Agriculture
• The goal of sustainable agriculture is to meet society’s food and
textile needs in the present without compromising the ability of
future generations to meet their own needs.
• Practitioners of sustainable agriculture seek to integrate three main
objectives into their work: a healthy environment, economic
profitability, and social and economic equity.
• Every person involved in the food system—growers, food processors,
distributors, retailers, consumers, and waste managers—can play a
role in ensuring a sustainable agricultural system.
• How can these players promote sustainable agriculture.
Sustainable Agriculture: Indian Perspective
• Green Revolution has made a significant dent on aggregate supply of
food grains, ensuring food security to the growing population. The
next stage of agricultural growth however, faces a serious challenge in
terms of sustainability.
• It is only relatively recent phenomenon that large-scale forest areas,
grazing lands and waste lands have been converted into croplands to
support the rising population, which has caused ecological imbalance
and atmospheric pollution. With no further scope for expansion of
agricultural land efforts have been made to enhance the production
of food grains using high yielding variety of seeds, fertilizers and
irrigation along with advanced farm equipment.
• However, so-called green revolution is confined to a few crops, viz,
wheat, rice and maize and has been possible only in restricted areas,
i.e., Punjab, Haryana and Western Uttar Pradesh and certain selected
districts of Andhra Pradesh, Maharashtra and Tamilnadu.
• Naturally much work is needed to lift the agriculture to a level where
it is least affected by vagaries of monsoon and needs little from
outside the farm, i.e., lesser dependence on chemical fertilizers and
water. The limited success of green revolution has been a mixed bag
in that it has given rise to new set of problems: overuse of water and
fertilizers. Excessive use of water results in water logging and
salinization whereas excess of fertilizers and pesticide cause pollution
of water bodies contamination of ground water. discussed.
Dimensions of Sustainable Agriculture

Ecological Sustainability Economic sustainability Social sustainability

Ecological Sustainability
• Many traditional and most conventional farm practices are not
ecologically sustainable: they overuse natural resources, reducing soil
fertility, causing soil erosion, and contributing to global climatic
change.

• Soil fertility
• Water
• Biodiversity
• Pollution
• Landscape
• Climate
Economic sustainability

• Agriculture cannot be sustainable unless it is economically viable

over the long term. Conventional agriculture poses greater long-term
economic risks than “sustainable” alternatives
• Export vs. local orientation
• Risk
• Debt
• Niche markets
• Employment
Social sustainability

• The social sustainability of farming techniques is related to the ideas

of social acceptability and justice.

• 1) Inclusiveness
• 2) Local acceptance
• 3) Gender
• 4) Indigenous Knowledge
Current Policies and Challanges
• Successive programmes gave emphasis on
1) diversified production, 2) strategies to contain risk and
uncertainties, 3) farm mechanization, etc.
Presently, agriculture in India faces the challenges of
degrading soil quality, 1) lowering ground water table, 2) resurgence of
pests and diseases, 3) low input response
Climate Change has the potential to seriously derail the food
production. Consequently, there is a growing clamour for adopting
programmes and policies for sustainable intensification of agriculture
with focus on organic farming, conservation agriculture, climate smart
agriculture (CSA), etc
Possible Action for India
• Improvement of existing production systems (e.g. altered crop rotations,
introduction of green manuring, use of plant species adapted to specific
locations).
• Improved protection of natural resources (e.g. erosion protection).
• Increase in efficiency of existing resources (e.g. irrigation, use of technology, basic
and advanced training).
• Introduction of regenerative branches of business (e.g. horticulture or
aquaculture).
• Optimization of post-harvest systems (e.g. storage).
• Improvement of channels of distribution (e.g. market access, transport).
• Access to loans and other financial services.
• Covering risk (e.g. through land law, support of producer groups)
Organic Farming

• Organic farming is a system which largely excludes the use of

synthetic inputs (such as fertilizers, pesticides, hormones etc.) and to
the maximum extent rely on crop rotations, crop residues, animal
manures, off farm organic wastes etc.
• Major Crops- Tea, rice, bananas, cotton, wheat, spices (mainly pepper
and ginger), coffee, nuts, pulses, and herbal product
What is the need of Organic farming ?

• Crisis in Indian agriculture

•Suicides by farmers-Maharashtra, Punjab and Andhra Pradesh
•Modern farming has become unviable
•Scarcity in natural resource inputs–reforms in water
Benefits of Organic Farming

• Income = (Yield x Price) x Risk Factor –Production Costs

• Conversion Benefits
1)Improved the net-farm incomes
2) Reduced the risk of pesticide poisonings, lead to more self-
sufficiency
3)Improved food safety and reduced vulnerability, and improved the
access to networks
4) supporting knowledge exchange and political participation
Challenges
• Modern Organic movement is yet to take deep, concrete roots in
India
• Policy-level awareness is still lower
• No encouragement from consumers
• Insufficient and inadequately developed market infrastructure.
• No proper institutional framework
• There is huge shortage of organic input
Working areas and the way forward

• Consumer education on food quality.

• Extension and training of farmers.
• Indigenous knowledge promotion.
• Policies for Organic Input Industry
• National/State Organic Agricultural Policy
Precision Farming
• Precision Agriculture refers to the precise application of agricultural
inputs with respect to soil, weather and crop need in order to
improve productivity, quality, and profitability in agriculture.
• It is a modern agriculture practice involving the use of technology in
agriculture like remote sensing, GPS, GIS for improving productivity
and profitability.
• It enables farmers to use crop inputs more efficiently.
• More efficient utilization will bring more crop yield and quality
without polluting the environment and will result in sustainable
agriculture.
Advantages
• It will enhance agricultural productivity and prevent soil degradation in
cultivable land resulting in sustained agricultural development.
• It will reduce excessive chemical usage in crop production.
• Water resources will be utilized efficiently under the precision farming.
• GPS allows agricultural fields to be surveyed with ease. Moreover, the yield
and soil characteristics can also be mapped.
• Dissemination of information about agricultural practices to improve
quality, quantity and reduced cost of production in agricultural crops.
• Non-uniform fields can be sub-divided into smaller plots based on their
unique requirements.
• It provides opportunities for better resource management and hence
reduce wastage of resources.
Disadvantages

• High capital costs may discourage farmers to not adopt this method
of farming.
• Precision agriculture techniques are still under development and
requires expert advice before actual implementation.
• It may take several years before the actual collection of sufficient data
to fully implement the system.
• It is an extremely difficult task particularly the collection and analysis
of data.
Precision farming in Indian context
• Refinement and wider application of precision agriculture technologies in India
can help in reducing production costs, increasing productivity and better
utilization of natural resources.
• It has the ability to revolutionize modern farm management in India through
improvement in profitability, productivity, sustainability, crop quality,
environmental protection, on-farm quality of life, food safety and rural economic
development.
• It can increase the efficiency of irrigation efficiency when water resources are
low.
• Farmers can use forecast and mitigate problems like water stress, nutrient
deficiency, and pests/diseases.
• It also increases opportunities for skilled employment in the agriculture sector
and also provides new tools for evaluating multifunctional aspects including non-
market functions.
What do you think are the challenges for
India in the context of precision farming &
what should be the way forward ?
Challenges For India

• The adoption of precision farming in India is yet in the nascent stage

due to its unique pattern of land holdings, poor infrastructure, lack of
farmers inclination to take the risk, social and economic conditions
and demographic conditions
• The small size of landholdings in most of the Indian agriculture limits
economic gains from currently available precision farming technology
Advances in Agriculture (18th March)
Topics covers so far:

● Why do countries trade ?

● History of trade among countries and the formation of GATT & WTO
● Concept of Food Security
● Changing Preferences of FOOD preferences as countries grow
● Need to understand what tariff’s, quota’s, subsidies & barriers to trade ...

AOA- Agreement on Agriculture

It has four major pillars:

1. Market Access
2. Domestic Support
3. Export Subsidies
4. Other Permissions

1. Market Access:

a. Tariffs
b. Bound & applied tariff rates
c. Tariff Quotas
d. Special Safeguards

● Tariffication: It implies that all non tariff support (Quota’s, Subsidies, etc.) needs to be
converted into a tariff support.
● Tariff Reduction:
● Access opportunities: he

Formula for calculating tariff:

T = [ ((Pd - Pw)/ Pw) x 100]

Where, Pd is domestic price

Pw is world price
T is tariff equivalent

Developing Developed

Bound Tariff It need to be reduced by 17% It need to be reduced by 57%

 Tariffication It need to be reduced by 24% It need to be reduced by 36%

Time A duration of 10 yrs was A duration of 6 yrs was given

given to implement it. to implement it.
(Note: This is given by WTO)

Problems of Tariffication:

● The developing countries get a very low flexibility, when tariffication is implied on all
non-tariff support and World price falls to an extreme low.
For example: A commodity with a domestic price of Rs. 4000 and world price after
tariffication is still 2500, then the country will be unable to support local domestic players.

● Special Safeguards under Market Access is used when:

○ Foreign players hurt domestic players/producers of a country by providing
unwanted support to importers by their country, dumping their products,
supplying in a high volume to deliberately disturb the domestic market.
○ We can take Special Safeguarding measures like Anti dumping duty,
countervailing duties & emergency safeguards.
● Domestic Support:
○ Companies helping their Domestic traders & producers to have a better market..

Classification Domestic Support

Green Box Direct Payments Development

Exempt measures
Measures
Blue Box Limit Production Payouts

Non Exempt Amber Box Subject to Reduction Commitment

Measures

○ De Minimis Support: If the support is less than 5%, then its won’t be an issue

AMS = [ Product Specific Support + Non Product specific support + De Minimus ]

○ Developed: 20 % ( Amber Box), Developing: 13% , countries like India.

Export Subsidies:

Other Provisions:
● SPS-
● Technical barriers to trade: For rg. If the export import policies are different for different
countries with their own regional language, for say if india writes all the policies in
Sanskrit - it will become difficult for other countries.
● Special & Different treatment: If a country gives special preference or treatment to
foreign trade.

● Trade liberalization produces both, who get profit out of trade & loss out of trade.
Advances in Agriculture (25th March)
RISK & UNCERTAINTY IN AGRICULTURE
RISK: Risk can be calculated in terms of probability and can be measured.

UNCERTAINTY: Uncertainty cannot be measured as you don't have knowledge of it.

Can Uncertainty be converted into Risk?

It can be converted into Risk if we gather more information on it.

What are different types of risk?

1. Price risk: it can be caused due to supply and demand,

2. Production Risk
3. Human Resource Risk
4. Institutional Risk
5. Financial & Asset Risk: It is associated with

● Imperfect market Where market is not in Equilibrium and Supply and demand does not
meet.
● Where the seller does not get a fair value for his produce or buyers need to pay higher
than the fair value of produce
● Lack of information May result in an imperfect market.
● For example: In Maharashtra Mandis are not perfect due to following factors:
■ Poor Infrastructure
■ Quality is not proper
■ Auctions are not fair
● What policies government has implemented for making Mandis efficient:

■ E-Nam : Price transparency, Buyers from other Mandis, Trading from adjoining
APMC may bid, Quality Check, Credibility, Well integrated process, market
access.
■ Warehousing Finances: Can be used when there is excess of the commodity in
the market, and prices are low.

In such a situation, farmers can store his produce in warehouses for perishable
goods and in turn take warehouse receipt. This receipt can be given to the bank
to raise funds through credit/loan from the bank. The fund raised by the farmer
can now be used to start farming operations for next season. This helps farmers
to reduce Price Risk.
● How the government controls price uncertainty:
■ MSP: Providing Price Floor for protecting price risk of Farmers.
■ Government buys farmer’s produce through the food federation of India.

● What are Innovative ways to reduce price uncertainty risk for the future.
■ Contract Farming
○ Contract Design: Expected behaviour, traits, requirements of a
contract with all the clauses
○ Advantage to farmers: low market risk & uncertainty, low transaction
cost, price assurance, credit facility, Input facility, better yield,
technological & other support by company, diversification of crops,
and learning new techniques.
○ Disadvantage to farmers: Monopolist /Oligpolist, Rejection of
contract in case farmers are not able to meet the contract design.
■ Forward Contract
■ Value addition (promote food parks)
■ Forecasting Models
● Contract Farming As Price Risk Mitigation
● Constraint
■ Seasonal (idle manpower, machinery and labour).
■ Production
● Benefits of Contract farming
● Insurance
■ Insurance delivery strategies-
■ Traditional Marketing: - Insurance by nature is believed to be
sold(mistakenly), not bought; Currently, it is particularly true!

■ Model - brokers/ agents/self

Problems in Crop Insurance:

■ Improper inspection of crop loss → either loss or delays the compensation.
■ Accessibility: It is difficult to access individual farms(it is a timely & costly
affair in insurance segment)
■

Solution for Crop Insurance:

■ Improper inspection of crop can be reduced by:
○ Integrated drone technology with Mapping & GIS
○ Drone technologies with mounted crop sensors.
○ Crop sensors on field connected with smartphones and drones (To
collect information like moisture content, soil conductivity,
MR. SUSHANT MALIK

FOOD SECURITY
ADVANCES IN AGRICULTURE

Introduction

To provide the accessibility, affordability and availability of Nutritional Good quality food to
the whole population at all times. And this process needs to be Sustainable in nature to
cater the food requirements in Future.

COPYRIGHTS 101: ASHWIN RAYMOND JOHN (OWNER)

Theory of Demographic Transition

Countries stage wise

Stage 1: Tribals

Stage 2: African Countries

Stage 3: India, Sri Lanka

Stage 4: Japan, USA, and other developed European countries

Stage-wise Classification of Food Preferences (Macro-level)

Stage 1: Coarse for Grains

Stage 2: Pulses, Grains

Stage 3: Vegetables, Fruits, Pulses, Grains.

Stage 4: Dairy, vegetables, fruits, pulses & grains.

COPYRIGHTS 101: ASHWIN RAYMOND JOHN (OWNER)

AGRICULTURE & TRADE

Tariff/subsidy/Quota -

● In case of Tariff, India will put a 30% Tariffs on China product worth 12,000 Rs to be
sold at 15,600 in Indian market, where the same product is available at 14,500. Then
the tariffs applied by Indian government have protected the domestic producers.
● In case of Quota, Let’s suppose India restricts other traders from the world on a
quota to trade only 200 cars, which has a market of 2-3 lacs in India, will make it
unviable for Foreign traders.
● In case of Subsidy, the local producers will be given a subsidy on the production of
goods. For eg, on a product of 14,500, if the government provides a 20% subsidy,
then the local producers can sell the same product at 11,600 which the foreign
trader is selling at 12,000. This will not only help in getting the domestic market, but
now the producer can trade at a lower price in the International market too.

World Trade Organisation:

● URUGUAY ROUND (1986 - 1994) : IThe Uruguay Round was the 8th round of Multilateral
Trade Negotiations (MTN) conducted within the framework of the General Agreement on Tariffs
and Trade (GATT), spanning from 1986 to 1994 and embracing 123 countries as "contracting
parties". The negotiations and process ended with the signing of the Final Act of the Marrakesh
Agreement in April 1994 at Marrakesh, Morocco. The round led to the creation of the World Trade
Organization (WTO), with GATT remaining as an integral part of the WTO agreements. The
Uruguay Round was, without a doubt, the largest trade negotiation ever, and may very well have
been the largest negotiation ever. It set out rules and principles to cover all global trade, from

COPYRIGHTS 101: ASHWIN RAYMOND JOHN (OWNER)

 banking to consumer products. The subjects for negotiations, the widest of any GATT round,
were tariffs, non-tariff measures, tropical products as a priority area, natural resource-based
products, textiles and clothing, agriculture, review of GATT articles, safeguards, Tokyo Round
agreements, ad arrangements, subsidies and countervailing measures, dispute settlement,
trade-related aspects of intellectual property rights, trade-related investment measures and the
Functioning of the GATT System (FOGS).
● The establishment of the WTO (1994), which administers 15 multilateral, and four plurilateral
trade agreements
● Principles:
■ MFN - (Most Favored Nation) - For example India, will provide better tariffs &
quotas to MFN countries (i.e. Myanmar & Srilanka)
■ Reciprocating - It's like an agreement between two countries to give equal
opportunities. For example, let's say India and the USA won’t put tariffs on either
of their goods.
■ National Treatment - To impose the same treatment for traders as the local
producers.
● AOA - The Agreement on Agriculture (AoA) is an international treaty of the World Trade
Organization. It was negotiated during the Uruguay Round of the General Agreement on Tariffs
and Trade, and entered into force with the establishment of the WTO on January 1, 1995.

David Ricardo: Theory of Free International Trade

Given:

● No of labourers - 100

Cars Wine

France 5 per labour hour (500) 10 per labour hour (1000)

United States 20 per labour hour (2000) 20 per labour hour (2000)

Opportunity Cost

1 CAR = 2 WINE
FRANCE
1 WINE = 0.5 CARS

1 CAR = 1 WINE
UNITED STATES
1 WINE = 1 CAR

COPYRIGHTS 101: ASHWIN RAYMOND JOHN (OWNER)

 ● In the above Opportunity cost table, France has to let go 2 wines to produce
one car, on the other hand the United states has to let go only 1 wine in order
to produce a car. Hence, the United States has a comparative advantage of
producing cars as compared to France.
● In the second scenario as per the table, the United States has to let go 1 car to
produce one wine, on the other hand France has to let go only 0.5 car in order
to produce 1 wine. Hence, France has a comparative advantage of producing
wines as compared to the United States.
● According to the above two scenarios , it's beneficial for both the countries to
stick to the comparative advantage and produce the respective commodities
only and trade the produce to meet each other’s requirement.

Limitation:

● No transportation & other costs were not included, so in cases comparative advantage
gets dissolved and the trade does not take place.

COPYRIGHTS 101: ASHWIN RAYMOND JOHN (OWNER)

Advances in Agriculture

Session: Risk and Uncertainty in

agriculture

1
Defining Risk and Uncertainty
• Risk can be defined as imperfect knowledge where the probabilities
of the possible outcomes are known, and uncertainty exists when
these probabilities are not known.

• The uncertainty is not measurable while risk can be measure through

the probability concepts.

Session 1 2
Types of the Risk
• Production or yield risk occurs because agriculture is affected by many
uncontrollable events that are often related to weather, including excessive
or insufficient rainfall, extreme temperatures, hail, insects, and diseases.

• Price or market risk reflects risks associated with changes in the price of
output or of inputs that may occur after the commitment to production
has begun. In agriculture, production generally is a lengthy process.
Livestock production, for example, typically requires ongoing investments
in feed and equipment that may not produce returns for several months or
years. Because markets are generally complex and involve both domestic
and international considerations, producer returns may be dramatically
affected by events in far removed regions of the world.

Session 1 3
• Institutional risk results from changes in policies and regulations that
affect agriculture. This type of risk is generally manifested as
unanticipated production constraints or price changes for inputs or
for output. For example, changes in government rules regarding the
use of pesticides (for crops) or drugs (for livestock) may alter the cost
of production or a foreign country’s decision to limit imports of a
certain crop may reduce that crop’s price. Other institutional risks
may arise from changes in policies affecting the disposal of animal
manure, restrictions in conservation practices or land use, or changes
in income tax policy or credit policy.
• Human or personal risks that is common to all business operators.
Disruptive changes may result from such events as death, injury, or
the poor health of a principal in the firm.

Session 1 4
Financial risk differs from the business risks previously described in
that it results from the way the firm’s capital is obtained and financed.
A farmer may be subject to fluctuations in interest rates on borrowed
capital, or face cash flow difficulties if there are insufficient funds to
repay creditors.

Asset risk is also common to all businesses and involves theft, fire, or
other loss or damage to equipment, buildings, and livestock.

Session 1 5
• Factors exacerbating risks in Indian agriculture

1. Climate variability and change

2. Frequent natural disasters
3. Uncertainties in yields and prices
4. Weak rural infrastructure
5. Imperfect markets and
6. Lack of financial services

Session 1 6
Illustrative list of risks

• Rainfall /water availability determines Sowing time (rainfed)

• Temperature drives crop growth, duration; influences milk production in
animals and spawning in fish
•Temperature influence pest and diseases incidence on crops, livestock and
poultry
• Radiation influences the photosynthetic productivity
•Wet & dry spells cause significant impact on standing crops, physiology, loss
of economic products
•Extreme events (eg. high rainfall /floods /heat wave /cold wave/ cyclone
/hail /frost) cause enormous losses of standing crops, live stock and fisheries

Session 1 7
Government Measures to reduce risk
• 1) MSP
• 2) MIS
• 3) MFP
• 4) PSF
• 5) NDRF/SDRF

Session 1 8
Contract Farming As Price Risk Mitigation
• Allows control - ideal option from sowing to packing
• timely availability of raw material in required quality and quantity
• ‘fair’ price
• introduction of new practices or technology
• Introduction of new crops to meet evolving need
•Help in planning
• logistics
• other supplies
• schedule processing etc
Session 1 9
Constraints
• seasonal (idle manpower, machinery and labour).
•Production risk is transferred to the corporate from producers
•Politically sensitive while dealing with farmers

Session 1 10
Contract farming – Benefits for farmers

•Assured markets
•Stable and assured price and in turn income
•Access to new practices and technology
•Access to alternate market channel

Session 1 11
Insurance
• Insurance delivery strategies-
Traditional Marketing: – Insurance by nature is believed to be sold
(mistakenly), not bought; Currently, it is partially true!

Model- brokers/agents/self

Session 1 12
Advances In Insurance Sector
• Bank assurance - a new concept that started after the insurance
sector opened up. Under this concept, a Bank or FI (Financial
Institution) takes the corporate agency of an insurance company, and
starts selling the insurance products to its banking clients in particular
and the general public Area
• Yield Insurance - like National Agricultural Insurance Scheme (NAIS),
is credit linked, and hence the product is serviced through FIs. The
product is compulsory for borrowing farmers, and the FIs extend
insurance as and when a crop loan is disbursed.

Session 1 13
Agriculture Drones - US Experience
• In USA, the use of drones for crop surveillance has shown increase in
farm crop yields while minimizing the cost of walking in the fields or
airplane fly-over filming.
• Using precision imaging system has enabled viewing composite video
showing the health of crops.
• It can find potentially yield limiting problems in a short time.
• With the help of integrated GIS mapping, it can draw field borders for
flight pattern.

Session 1 14
Examples
• 1) Drones to measure crop status
• The Maharashtra Government under the Rashtriya Krishi Bima Yojana, used two
drones in drought-hit Osmanabad district to survey crop losses due to water
scarcity, ‘for better verification of crop losses’ (2015).
• The data will determine the compensation to be paid to farmer
The responsibility for the survey would be with a private company and the cost
works out to be $1 per farmer.
• Also, @ 1000 pictures every 5 meters, it translates into around 800,000 pictures
per acre - which is very good granularity.
• It is expected that drones will be used during both kharif and rabi season crop
harvest.
• If it proves that this technology is cost effective & reliable, the existing manual
surveys & approx. assessments may become a thing of the past!

Session 1 15
INDIA: KISAN Project [C(K)rop Insurance using
Space technology And geoiNformatics]
• The project envisages use of Space Technology and Geoinformatics
(GIS, GPS and Smartphone) technology along with high resolution
data from UAV/Drone based imaging for improvement in yield
estimation, needed for crop insurance programme.
• • The CCE (Crop Cutting Experiment) is a process used to analyse the
overall yield of the village. It’s an imp activity as the values obtained
thru CCE is the basis for nation wide yield values

Session 1 16
ISRO’s Android App for Hailstorm data
• An Android App, designed by Indian Space Research Organisation, to
assess real time data on hailstorm occurrences to figure out crop loss
in affected areas has also been launched.
• Both these technical support systems will help the government in
effectively running the crop insurance schemes & disbursing
compensation to farmers.

Session 1 17
• Network of Agri-Input Suppliers: The country has a huge network of
agricultural input suppliers, who work closely with the farming
community, and, these therefore, should be encouraged to distribute
crop insurance products.
• Agri Commodity Traders: They can also distribute crop insurance
products.

Session 1 18
Insurance for non-borrowing farmers
• Post Offices: The country has a network of nearly 1,40,000 post
offices in the rural areas, whose activities have been also now
extended to crop loan lending. The local postman is very handy and
well known in the village, and can be a great source for crop
insurance marketing and servicing.
• Deploying existing network of Agents of General & Life Insurers: Crop
insurance marketing & distribution by nature is a seasonal activity, &
hence, may not interest the potential insurance agents to seek the
agency, of an exclusive agriculture insurance insurer like AIC

Session 1 19
Nationally Consistent Database
• crop insurance is becoming increasingly important, in helping to
manage risk at farm levels.
• To implement insurance schemes, accurate data on crop yields &
acreage at the individual & aggregated levels are needed to decide: –
actuarial premium; and – timely data to decide the indemnity
payments.

Session 1 20
What Can Be done further
• Flood Risk Index
• Rainfall Measurement
• Crop Health Monitoring
• Weather Based Insurance
• Weather forecast through weather apps
• Decision support solution for farmers like selling crops at appropriate rates
• AI based sowing advisories
Harvesting and Transport
• Machine-learning algorithms to differentiate between weeds and crops
• Wireless sensor to monitor crops connected with smartphone
• Price forecasting model to prevent inflation

Session 1 21
Sushant sir
11 Feb- Lecture 1

Agriculture trade and food security

What is food security:

- Providing good quality of food in adequate amount

- Provide nutritional food to all and it has to be sustainable

- Affordability, Availability and accessibility of good quality and nutritious food for all the
population at all the time is called food security and this process has to be sustainable in
nature.

How do preferences change:

Theory of Demographic Transition: graph

Image:

- When society started its development, (society is very young and in its initial stage)

1) Birth rate and death rate is high initially:

Reason: don’t have healthcare facility, unaware of medical facility, education,

illiteracy rate

2) Birth rate continue to be high or on same level and death rate slightly come down

Reason: some health care, medical facilities are available, but spreading awareness
takes a lot of time, thus birth rate is not decreasing in 2nd (a) stage. Later it started
decreasing.

3) Birth rate and death rate start decreasing, but birth rate is somewhat higher than
death rate.

Food preferences: (at macro level)

Stage 1- low development, low-income level)- coarse grain, basic vegetables consumption

Stage 2(a)- Grains, pulses

Stage2(b)- vegetables, fruits, pulses, grains

Stage 3- Dairy products, vegetables, fruits, pulses, grains

· To achieve food security,

- farming pattern has changed

- more Horticulture crops, cash crops have grown to meet the demand

· Production pattern, definition of nutritious food will change as food preferences changed in
various stages.

Agricultural Trade:

International trade:

- It is happening since ages, but formally in our book, it came into picture since during world
war 2.

- If we restrict trade, that result in dead weight loss.

- After world war 1 & 2, world think that they need each other. around 23-24 meet, and they
wanted to form International Trade Organization, but US backed out.

- So, instead of ITO, they did an agreement known as General Agreement on Trade and
Tariffs (GATT).

- They did different rounds of meetings for tariffs/subsidy/quotation which can restrict tariffs.

- Eg(Tariff): If china sell Tv to India which is of 12000 and in our country it is produced at
14500, if I put 30% tariff on Chinese product, TV cost in my country will be 15600. So, it is
not feasible for china to do a business in our country and by applying tariff, we are protecting
domestic customers.

- Eg(quota): Annually, 20-30 lakh cars used in India, either cars can be produced in India or
they can be bought as a CBU from outside the world.

- So, quota is if company want to get CBU, it can only get 2000 cars per year as a CBU per
company. Thus, this business is not viable for company. So, quotas can restrict trade.

- Eg. (subsidy): If subsidy is giving to producers of India for TV of 3000Rs, Tv cost will be
11,500. Again, it is feasible for domestic customers as well as outside the country.

- 1968 to 1986, there was important round occurred known as Urugway round

- 1986 to 1994, every one accepted to from “World Trade Organization”. (WTO)
- Several principals of WTO such as Most favored Nation (giving some benefits to
Bangladesh then it will be given to everyone), Reciprocacity (If I am removing tariffs then
you will also remove tariffs), National Treatment (what treatment is given to domestic
producers will be given to outside producers as well.), etc.

Agreement on Agriculture:

Trade and Food Security:

Why do we Trade?

- Eg: Trade of Cars and Wine

- 2 Countries, 2 goods production and have 100 labor hours available.

Cars produced Wine produced

(per labor hour) (per labor hour)

France 5 10

United States 20 20

- Opportunity cost of producing

- 1 car in France = 2 wines

- 1 wine in France = 0.5 Car

- 1 wine in US = 1 Car

- 1 Car in US = 1 Wine

- If we want to utilized 100 labor hours in both the countries”

- In France:

cars produced = 100*5 = 500

Wine produced = 10*100 = 1000

- In Us:

Cars produced = 20*100 = 2000

Wine produced = 20*100 = 2000

- Higher opportunity cost for producing wine = US

- Higher opportunity cost for producing Cars = France

- France only produce wine and US only produce Car

- If France is producing only wine, 1000 wines will be produced.

- If US is only producing Cars, they will produce 2000 Cars.

- France will give 1000 wines to US, 1000 cars they will receive in return.

- If US give 2000 cars to France, US will receive 4000 wines in return.

- Thus, France has comparative advantage in producing wine and US have comparative
advantage in producing Cars.

Limitations for Theory:

- We haven’t considered transportation cost.

18 March – Lecture 2:

Revision:

Why do countries trade?

- Countries have comparative advantage for few commodities.

Agreement on Agriculture:

4 Pillars:

1) Market Access

2) Domestic Support

3) Export Subsidies

4) Other Permissions

Market Access:

- Different Components:
Tariffs

Bound and applied Tariffs rates

Tariff quotas

Special Safe guards

- WTO Says, Market access for agriculture products is only governed by tariff-based
decisions (No import licensing/no quotas/ no permit).

- Tariffication

- Tariff reduction

- Access opportunities

- Different provisions for developing and developed countries.

Developing Developed

Bound tariff They should reduce by They should reduce by

17% 57%

Tariffication Reduce by 24% Reduce by 36%

Year to convert 10 Years 6 Years

T=

T – New Tariff

Pd - Domestic Price

Pw – World Price

- Once tariff applied, it cannot be reverted to non-tariff barriers.

Article: Market Access

The WTO Agreement on Agriculture did not enable trade liberalization in OECD
(all developed countries) countries. Developed countries used dirty tariffication,
selective tariff reduction and the Agreement’s Article 5 safeguard provision and
weaknesses in the minimum market access requirements for avoiding the
Agreement’s market access obligations. Developed country markets were not
open for developing country producers. Some developing countries were
engaged in dirty tariffication but most developing countries did not engage in
tariffication at all. Many of the developing countries have declared bound tariffs
which were a subject to reduction commitments in accordance with the terms of
their individual country schedules. However, limitations on the use of the
Agreement’s Article 5 safeguard provision can compromise the developing
countries in protecting domestic producers when sudden import surges or
unusually low import prices emerge. Certain developing countries adopted tariff
reduction commitments that may prevent the use of tariffs to protect particularly
sensitive agricultural products or to protect domestic producers from unfair
competition from subsidized developed country farmers. Many developing
countries agreed in implementing a uniform rate of binding and reduction for all
agricultural products which resulted with very little flexibility to provide higher
protection for basic foodstuffs and other sensitive agricultural products.

- Problem is developed countries have not opened the market for few developing countries.

- Restricting rules related to food safety

Export subsidies:
The WTO Agreement on Agriculture emphasized the existing injustice between developed and
developing countries regarding the availability of export subsidies as a tool of agricultural policy
by permitting past users of export subsidies to maintain these subsidies with certain reduction
obligations, while prohibiting the introduction of new subsidies. The Agreement sealed up the
unfair competitive advantage held by developed country producers because the developing
countries are deprived of an important tool of agricultural policy which may be used to increase
export revenues and create employment opportunities in the agricultural sector. However, a
country granting subsidy for its agriculture has to make sure that the support should not result in
that country having more than an equitable share of world export trade in that product (Article
XVI/3 GATT). The AOA also permits the use of export subsidies which are absolutely prohibited
by the Subsidies Agreement. The agreement rather requires countries to reduce expenditure for
export subsidies as well as volume of subsidized exports and it allows permissible levels of
market distortion (Gonzales, 2002). The obligation on export subsidies brings with it two major
concerns. ‘To the extent that developed countries reduce export subsidies, developing countries
products will become more competitive on both domestic and world markets, thereby boosting
the production of both cash and subsistence crops’ (Gonzales, 2002). However, it will also
create concern for food importing countries as their import bill may increase as a result of
increase in food price following reduction of support.

Domestic Subsidies:
The WTO Agreement on Agriculture exacerbated the injustice between developed and
developing countries observing the use of trade-distorting “amber box” subsidies by restricting
their use by developing countries. Most developing countries do not have domestic subsidy
reduction obligations because only few developing countries ensured significant domestic
agricultural subsidies during the 1986-88 base period. The Agreement prevents developing
countries from adopting “amber box” support measures in the future that exceed de minimis
levels of support and they may only use them if they fall within the “rural development”
exemption of the Agreement. In developing countries the “blue box” and “green box” exemptions
to the domestic support provisions affects on food security by encouraging over production in
developed countries, which depresses world prices and creates disincentives to domestic
production. The “blue box” exemptions allow the U.S. and the E.U. to promote exports by paying
farmers the difference between a government target price for agricultural commodities and the
corresponding market price. The “green box” exemption enables developed countries to evade
subsidy reduction obligations by transforming prohibited subsidies into direct payments to
farmers decoupled from production. These provisions mainly used by developed countries have
enabled them to avoid domestic subsidy reduction obligations without assigning significant
advantages to developing countries.

Export Subsidies:

- If china is exporting in india too much which is hurting domestic consumers, in that case we
get the power to introduce anti-dumping duty, counterwailing duty, emergency safegaurds

Domestic Subsidies:

Countries helping their domestic producers so that their products become more competitive.

- Green: Direct payments (eg. Govt is giving 6000 Rs to farmers scheme), developmental
measures

- Blue: Limit production payouts (eg. Govt is paying money to stop excessive production of
food)

- Amber: Subject to reduction commitment (eg: MSP)

- Green and Blue: exempt (De minimus provisions comes under exempt: only less than 5%
support is allowed)
- Amber: Non-exempt

- AMS (Aggregate Major of Support) = Product Specific Support + Non-product specific

support + De Minimus Support

- In developed countries, 20% reduction in Amber Box

- In developing countries, 13% reduction in support

Export Subsidies Other Provisions (developed countries)

Sanitary and Phyto-sanitary majors

Technical barriers to trade

Special and differential

Sanitary and phyto-sanitary majors:

- Certain quality checks, disease free certificates

Export Subsidies:

- If developed countries reduce export subsidy, developing countries like india will become
more competitive in the market.

- It will create concern for food importing countries, because as import will increase,
developed countries will sell it at higher price in their country.

Concern of food security with International Trade in countries like India:

- Even in drought condition, country should able to provide good, nutritious and fix number of
calories.

- From developing to developed, if special events happened, we can apply quota to protect
domestic farmers, but after tariffication, developing countries will not able to fulfill food
security.

- If domestic support has reduced, production will be decreased whereas supply will remain
the same. Domestic consumption will decrease as price increases.
- If we connect agri. Trade to food security in order to food equality, in order to reduce
poverty, we cannot apply tariff in one go.

23th March 2021 Notes

Risk & Uncertainty: Risk can be measured; uncertainty cannot be measured.
Risk is something which has some probabilities associated, we know that the event can happen
with this much probability. E.g., Insurance-life insurance, at this age there is a probability of
someone dying. Risk can be calculated.

Uncertainty we don’t have information

We cannot forecast uncertainty; we don’t have perfect information.

If more information is there in uncertain events, then uncertainty can be converted into risk.

Types of Risks in Agriculture:

1. Price Risk- change in exchange rates, demand & supply (related to global level).
International changes can also affect the demand in India e.g., crude oil

2. Production Risk or Yield risk-temperature, weather, pest & disease.

3. Human Risk:
Specifically for Indian Agriculture:

Credit Risk-lack of financial services

7. Institutional Risks- new laws-farm bills

What is imperfect market- where market equilibrium is not there, where sellers & buyers are not
getting fair prices. Where buyers & sellers are not equally sharing the surplus

Lack of knowledge or information

Very less sellers and buyersE.g., Our mandis

MIS - Market intervention scheme

MFP- Mega food parks (complete food processing at a single place eg: from fruit to juice jelly
jam etc all will be processed at the same place)

PSF - Price stabilization fund

NDRF - National disaster relief fund

E-Nam : Price transparency, Buyers from other Mandis, Trading from adjoining APMC may bid,
Quality Check, Credibility, Well integrated process, market access.

■ Warehousing Finances: Can be used when there is excess of the commodity in the market,
and prices are low.

In such a situation, farmers can store his produce in warehouses for perishable goods and in
turn take warehouse receipt. This receipt can be given to the bank to raise funds through
credit/loan from the bank. The fund raised by the farmer can now be used to start farming
operations for next season. This helps farmers to reduce Price Risk.

Rock bottom - When supply is high ,price less and vice versa. But this is a problem for farmers.

Price floor - minimum price that govt announces to keep for particular product

Price ceiling - The maximum price you can give

Forwards and futures can be used to reduce price risk.

Contract farming

Forward and future contract to reduce price risk

Warehousing and cold storage

Value addition of food products

Transaction cost - extra cost between harvesting to selling. Spend before, after or during
contract.

Reduction of production risk

Insurance - Improper inspection of crops. Assessing does not occur properly because it is a
very timely and costly process, S and M farmers.

Yield estimates are not available

Moral Hazards can occur.

Solutions

Index based Weather insurance - Cross verification

(Info lack is a disadvantage)

Mapping and Precision farming

Soil testing

Connect sensors to mobile apps

We can link insurance to companies. Spread awareness.

Nisha mam
Jan 6th

Farm mechanization

Reasons for low mechanization in India

● High Cost of equipments (Affordability)

● Farmers are having less money to spend on maintenance
● Fragmented lands
● Lack of technical knowledge and information of subsidies
● Subsidy is provided for engines but not for attachments

High Capital investment and labour intensive operation is for Weeding

How to increase mechanization in India ?

● Provide subsidy
● Contract farming
● Co-operative farming
● Leasing equipments
● Awareness abt schemes
● CHC

SHG(mostly women) - started pooling money and purchased farm equipment, and only these
members can borrow those equipment whenever required and others can borrow on hiring
basis.

Jan 13

Integrated nutrient management

This is about organic agriculture.

What is Organic agriculture?

When the cropping is done without the use of chemical fertilizers, pesticides or any other
chemicals, it is called organic agriculture. For this purpose, there are certain concepts called
INM, IPM and IDM. In integrated management synthetic items are used only up to a limited
level. The purpose is to have a residue free crop product.

INM

Basic nutrients are Primary and secondary nutrients; Micro and macro nutrients.
Major nutrients

Classification and source of nutrients

Class Nutrients Source

Basic C, H, O Air and water

Macro N, P, K, Ca, Mg, S Soil

Micro Fe, Mn, Zn, Cu, B, Mo, Cl Soil

There Primary and secondary nutrients in macronutrients. N, P, K are the primary nutrients and
they are very much necessary for the plant to grow. Secondary are Ca, Mg, S. There are almost
17 micro nutrients.

Function of plant nutrients

Elements that provide basic structure to the plant - C, H, O.

Elements useful in energy storage, transfer and bonding -N, S & P. these are accessory
structural elements which are more active and vital for living tissues.

Elements necessary for change balance - K, Ca & Mg, act as regulators and carrier.

Elements involved in enzyme activation and electron transports. Fe, Mg. Cu, Zn, B, Mo & Cl are
catalysers and activators.

Characteristics of a Fertile Soil

Rich in nutrients necessary for basic plant nourishment i.e., NPK

Consists of adequate minerals such as boron, chlorine, cobalt, copper, iron, manganese,
magnesium, molybdenum, sulphur and zinc.

Rich in organic matter that improves the structure of the Soil and helps to retain more moisture.

pH is in the range 6.0 to 6.8.

Consists of a variety of microorganisms that support plant growth.

How to improve the fertility of the soil?

For nitrogen we can use leguminous crops in crop rotation. For potassium we can use other
biofertilizers for enriching the soil.

For adequate minerals do soil testing and find out when to apply what amount of nutrients to the
soil.

For organic matter use compost.

pH check must be done to find out if the soil is acidic or basic or neutral and then management
measures must be done accordingly.

For microorganisms various things like azolo etc can be done.

Nutrient Deficiency Symptoms

Nutrients Absorbed Function Deficiency

form

N NO3, NH4+ Protein and General yellowing of leaves, stunted

enzyme component growth, older leaves affected first
often

P HPO4-, Membranes, Dwarfed or stunted plants. Older

HPO4+, energy. DNA leaves turn dark

K K+ Osmotic balance Older leaves may wilt or look burned.

Yellowing between veins begins at
the base of leaf and goes inward
from the leaf edges

Ca Ca2+ Cell structure Fruit/flowers and new leaves are

distorted or irregular. Leaves can be
cupped downward. Occurs more
often at low pH.
 Mg Mg3+ Chlorophyll enzyme Older leaves will turn yellow and
activation brown around the edge of the leaf
leaving a green centre.

S SO4 (2-) Protein and Yellowing leaves starts with younger

enzyme component leaves

http://www.fao.org/agriculture/crops/thematic-sitemap/theme/spi/scpi-home/managing-ecosyste
ms/integrated-plant-nutrient-management/ipnm-how/en/#d

Definition

INM refers to the maintenance of soil fertility and of plant nutrient supply at an optimum level for
sustaining the desired productivity through optimization of the benefits from all possible sources
of organic, inorganic and biological components in an integrated manner.

Why INM?

Regulated nutrient supply for optimum crop growth and higher • productivity

Improvement and maintenance of soil fertility.

Zero adverse impact on agro - ecosystem quality by balanced fertilization of organic manures,
inorganic fertilizers and bio-inoculant.

This is for the balanced use of organic and inorganic substances.

Advantages

• Enhances the availability of applied as well as native soil nutrients

• Synchronizes the nutrient demand of the crop with nutrient supply from native and applied
sources.

• Provides balanced nutrition to crops and minimizes the antagonistic effects resulting from
hidden deficiencies and nutrient imbalance.

• Improves and sustains the physical, chemical and biological functioning of soil.

• Minimizes the deterioration of soil, water and ecosystem by promoting carbon sequestration,
reducing nutrient losses to ground and surface water bodies and to atmosphere.

Components
• Soil Source: Mobilizing unavailable nutrients and to use appropriate crop varieties, cultural
practices and cropping system

• Mineral Fertilizer: Super granules, coated urea, direct use of locally available rock PO4 in acid
soils, Single Super Phosphate (SSP), MOP and micronutrient fertilizers.

• Organic Sources: By products of farming and allied industries. FYM, droppings, crop waste,
residues, sewage, sludge, Industrial waste.

• Biological Sources: Microbial inoculants substitute 1540 Kg N/ha

Different ways of applying fertilizers

Based on the reading,

Broadcasting: Uniform distribution over the whole cropped field.

Placement: Application in bands or in pockets near the plants or plant rows.

Foliar application: Using sprayers, the fertilizers are sprayed covering the plants.

Fertigation

There are two types:

a) For solid fertilizers: there are four methods.
Broadcasting – Basal application and top dressing
Placement – Plough placement, deep placement or localized placement
Plant placement – Hill placement or row placement
Pellet application
b) For liquid fertilizers:
Starter solution: Given in the beginning before sowing
Foliar application: Application as spray along with water on the leaves
Fertigation
Injection into soil
Aerial application: Application with the help of drones through air.

Tillering stage specific to paddy.

Calculation of Fertilizer dose

Straight fertilizer
Complex fertilizer
Mixed fertilizer

IDM

Types of Diseases
Fungal
Bacterial
Viral
Nutritional disorders

Crop Protection: Common Pests and Diseases in Crops and their Management

• Blight is easily recognizable by the sudden death of all plant tissue including leaves, stems and
flowers. Blight is typically caused by wet and humid conditions.

• E.g., Foliar blight of cereals

There are patches which are dried up.

Canker: Canker is identifiable by a dead area on the stem that is often discolored.

• E.g. Anthracnose of beans

• Gall: Leaf gall is a swelling that occurs on plants. Galls will form on roots, stems and branches and
are caused by root knot nematodes and insects.

• E.g. Black knot of plums

Leaf Curl: Leaf curl is when leaves begin to curl and wilt. This is caused by several viruses.

eg Tomato, potato leaf curl

• Leaf Spot: Leaf spots are yellow or brown lesions (often look like burn marks) that take place on
leaves. These are caused by pathogens, fungi, pesticide damage and insect feeding. E.g.
tomato, rose

There is definite shape and pattern for the leaf spot whereas blight does not. Blight also occurs on
stem, leaves, etc whereas leaf spot occurs only on leaf.

Powdery Mildew: Mildew is one of the least harmful diseases that OCcurs on plants. It is easy to
identify by a grey or white powdery coating on the plant. It is caused by fungal pathogens.

There are two types of mildew

a) Powdery : seen as powder like substance on the upper part of the leaf
b) Downey : seen on the lower side of the leaf

E.g. cucurbits

• Root Rot: Rot is when plant tissues begin to rot away. They become thin and weak, they appear wet
or dry and the plant begins to decompose. Rot is caused by pathogens and fungi. The whole plant
becomes weak.
Wilt: Wilt is when leaves start to drop down and the plant begins to appear lifeless. Wilt is usually
caused by over or under watering or by pathogens.

• E.g. Cucumber, tomato (HIGHLY DISASTROUS IN TOMATO)

Difference between field capacity and permanent wilting point

PWP is the point where plants cannot recover from the wilt. This is due to low water content. It can
also be caused due to viral disease. And once it starts in a field, quickly a large number of plants will
be affected and die. The main measure to control it is by removing the affected plant and burning it.

Nutritional disorders

a) Blossom end rot in tomato : The lower portion of the tomato will start rotting. This occurs due
to lack of calcium.
b) Stunting is when plants do not grow to normal size. This is caused by a lack of nutrients,
pathogens or damage to the roots.
c) Chlorosis (discoloration): Chlorosis is when a green tissue turns yellow. It has many causes
including pathogens, lack of nutrients, and lack of water.

Integrated disease management (IDM)

• Integrated Disease Management (IDM) involves the need based use of pesticide only when the
disease incidence reaches economic threshold levels and this will promote the build up of many
biocontrol agents in the crop ecosystems.

• Thus IDM, a greener alternative to the conventional use of chemicals, is an attempt to promote
natural, economic and sociological farming methods through the most effective combination of farming
techniques and judicious and limited use of fungicide.

What is the method used in IDM but not in IPM ?

Hot water treatment of seeds.

Components of IDM

Host resistance

Biological control

Cultural control

Chemical control

Preventive measures
Types of Fungicide

• Mobility in a plant: contacts or systemics:

• Role in protection: preventive or curative. Contacts are products suited preventive (prophylactic -
prevent disease)

• Breadth of activity: single-site or multi-site. single-site fungicides are active against only one point
in one metabolic pathway in a pathogen or against a single critical enzyme or protein needed by the
fungus.

• Breadth of activity: narrow-spectrum or broad-spectrum (more commonly used). Narrow spectrum

fungicides are effective against only a few usually closely related pathogens.

• Type of chemical: Inorganic or organic (neem oil).

Biofungicides

Biofungicide is a naturally based microbial or biochemical product.

(a) Microbial biopesticides: have an active ingredient that is a biological control agent (organism
capable of attacking or competing with a pathogen or pest).

D) Plant biopesticides of plant incorporated protectants are defined by the EPA as pesticidal
substances that plants produce from genetic material that has been added to the plant".

Biochemical biopesticides contain naturally occurring substances. Some biochemicals may also be
products of fermentation.
Biochemicals can directly affect disease causing organisms or may stimulate SAR. Biopesticides
generally are narrow-spectrum, have low toxicity, decompose quickly, and thus are considered to have
low potential for negative impact on the environment.

Application methods

Fungicides are applied as dust, granules, gas, and, most commonly, liquid.

They are applied to:

Seed, bulbs, roots of transplants, and other propagative organs. These treatments are usually done by
the seed company. Some treatments need to be done by the grower on-site at the time of planting.
The goal is to kill pathogens that are on the planting material or to protect the young plant from
pathogens in the sol.

• Soil either in-furrow at planting, after planting as a soil drench (Including through drip irrigation), or
as a direct spray around the base of the plant.

• Foliage and other aboveground parts of plants by means of a sprayer.

• Inside of trees via trunk injection. • Harvested produce, as a dip or spray in the packinghouse.

Important pests

a) Aphids

• These tiny, pear-shaped critters have long antennae and two tubes projecting rearward from their
abdomen. Aphids suck plant sap, causing foliage to distort and leaves to drop; honeydew excreted on
leaves supports sooty mold growth; and feeding spreads viral diseases.

To control these bugs:

• Wash plants with strong spray of water

• Encourage native predators and parasites such as aphid midges, lacewings, and lady beetles

• When feasible, cover plants with floating row covers

Apply hot-pepper or garlic repellent sprays For severe problems, apply horticultural oil, insecticidal
soap, or neem oil

b) Maggots

• These stick to cabbage family crops, especially Chinese cabbages, and live throughout North
America. The maggots tunnel in roots, killing plants directly or by creating entryways for
disease organisms.
 • To control these destructive creatures,Apply floating row covers • Set out transplants
through slits in tar paper squares

• Avoid first generation by delaying planting

Apply parasitic nematodes around roots

• Burn roots from harvested plants

• Mound wood ashes or red pepper dust around stems

Maggot Vs Caterpillar

• The maggot is the larval stage of flies, while the caterpillar is the larva of moths and
butterflies. Both require control to keep your garden in top shape.

c) Caterpillars

• Caterpillars are soft, segmented larvae with distinct, harder head capsule with six legs in the
front and fleshy false legs on rear segments. They can be found on many fruits and
vegetables, ornamentals, and shade trees. Caterpillars chew on leaves or along margins;
some tunnel into fruits. To deter them:

• Encourage native predators and parasites

• Hand-pick your harvest.

Apply floating row covers (the pests will not be able to move from one place to another and
destroy the other parts. This has become a common practice. Eg: strawberry fields of
Mahabaleshwar. The row of the plant is covered with semi permanent things.)

First generation plant : very early part of the plant. This is avoided to control pest and
diseases.

These destroy the quality of the fruits.

d) Cutworms

Cutworms are fat, 1-inch-long, gray or black segmented larvae most active at night. They are
found on most early vegetable and flower seedlings and transplants throughout North
America. Cutworms chew through stems at ground level, they may completely devour small
plants in May and June

For control:

• Use cutworm collars on transplants

• Delay planting

• Hand-pick cutworms curled below soil surface

 Cutworms eat the stems. This differentiates them from caterpillars and maggots.

e)Potato Beetle

• Adults are yellow orange beetles with ten black stripes on wing covers They're found on
potatoes, tomatoes, cherry tomatoes, eggplant and petunias throughout North America. These
beetles defoliate plants, reducing yields or killing young plants. To control:

* Apply floating row covers

• Use deep straw mulches

• Hand pick

• Attract native parasites and predators

• Spray with neem oil

f) Plant Bug

• These are fast-moving, mottled, green or brown bugs that have forewings with black-tipped
yellow triangles. They can be found on many flowers, fruits, and vegetables throughout North
America. Adults and nymphs suck plant juices, causing leaf and fruit distortion, wilting,
stunting, and tip dieback To control these bugs

• Keep your garden weed-free in spring

Apply floating row covers

• Encourage native predatory insects

• Spray young nymphs with neem all

Systemic (sucking pests) and contact insecticides (eating pests)

Systemic goes inside the plant body and harms the sucking pest which takes up the plant sap.

Contact is on the surface of the plant and when the pest eats it it goes inside the body of the
pest.

Integrated pest management

a) Cultural

• Preparation of nurseries or main fields free from pest infestation by removing plant debris, trimming
of bunds, treating of soil and deep summer ploughing which kills various stages of pests.

• Proper drainage system and water management

• Selection of clean and certified seeds and treating seeds with fungic or bio-pesticides before sowing
for seed borne disease control.

• Selection of seeds of relatively pest resistant/tolerant varieties

• Adjustment of time of sowing and harvesting to escape peak season of pest attack.

Crop rotation, intercropping and plant spacing.

Optimum use of fertilizer. Use of FYM and blo-fertilizers should be encouraged.

• Proper weed management. It is a well-known fact that most weeds besides competing with crops for
micro nutrients also harbor many pests. • Setting up yellow pan sticky traps for white flies and aphids
at far above canopy height.

Growing trap crops on the borders or peripheries of fields. Alfalfa planted in strips among cotton,
Radish is said to attract flea beetle and root fly away from cabbages

• Seed treatment

b) Mechanical practices:

Removal and destruction of egg masses, larvae, pupae and adults of insect pests and diseased parts
of plants wherever possible.

Installation of bamboo cage cum bird percher In the field and placing parasitized egg masses inside
them for conservation of natural enemies and withholding of pest species wherever possible.

• Use of light traps and destruction of trapped insects.

• Use of rope for dislodging leaf feeding larvae eg caseworm and leaf folders.

• Installation of bird scarer in the field where required. • Installation of bird perches in the field for
allowing birds to sit and feed on insects and their Immature stages viz., eggs, larvae and pupae. • Use
of pheromone traps for monitoring and suppression of pest population.

c) Genetical practices:

• Selection of high yielding varieties for different crops

• Selection of comparatively pest resistant/tolerant varieties

• Use of genetically modified seeds e.g. B.t. cotton

• Release of sterile males of insects in sufficient numbers in the field to compete with fertile males.
Sterility in males is induced in the laboratory either through chemosterilants or through radiation.
 d) Regulatory practices:

• In this process regulatory rules framed by Govt. are brought into force under which
seeds and infested plant materials are not allowed to enter the country or from one
part to other parts of the country. These are known as quarantine methods and are of
two types i.e. domestic and foreign quarantine.

e) Biological practices:

• Biocontrol is the use of living organisms to control unwanted living organisms (pests). In other
words, deliberate use of parasitoids, predators and pathogens to maintain pest populations at level
blow those causing economic loss either by introducing a new bioagent into the environment of pest or
by increasing effectiveness of those already present in the field.

Type of Pesticides

• Insecticides - insects.

• Herbicides - plants.

• Rodenticides - rodents (rats and mice)

• Bactericides - bacteria.

• Fungicides - fungi.

• Larvicides - larvae

Types of insecticides

• Systemic Insecticides are put in the soil allowed to be absorbed by plant roots.

• Contact Insecticides are the common sprays that can be used at home to eradicate insects and
mosquitoes.

• Ingested Insecticides are used to kill rats, rodents and cockroaches.

Chemical pesticides

Chemical pesticides

From slide

Restricted Use pesticides: having very harmful effects.

The Six IPM Program Essentials

• Monitoring. This includes regular site inspections and trapping to determine the types and infestation
levels of pests at each site.

• Record-Keeping. A record-keeping system is essential to establish trends and patterns in pest

outbreaks. information recorded at every inspection or treatment should include pest. Identification,
population size, distribution, recommendations for future prevention, and complete information on the
treatment action

• Action levels. Pests are virtually never eradicated. An action level is the population size which
requires remedial action for human health, economic, or aesthetic reasons

• Prevention. Preventive measures must be incorporated into the existing structures and designs for
new structures. Prevention is and should be the primary means of pest control in an IPM program.

• Tactics Criteria. Under IPM, chemicals should be used only as a last resort only, but when used, the
least toxic materials should be chosen, and applied to minimize exposure to humans and all
non-target organisms.

• Evaluation. A regular evaluation program is essential to determine the success of the pest
management strategies.

ETL - Economic Threshold level

Terminology

• Economic injury level. The smallest number of insects (amount of injury) that will cause yield losses
equal to the insect management costs.

• Economic threshold. The pest density at which management action should be taken to prevent an
increasing pest population from reaching the economic injury level.

EIL

EIL - C/VIDK, where

• C= cost of control

•V= value of the commodity

• I = injury (e.g. defoliation or damaged fruit) based on a given of insects density

•D- economic damage (e.g. bushels lost or quality discount) caused by a given level of injury
•K= proportion of reduction in injury resulting from a control measure (usually the proportion of the
insect population that is killed, or percent control)
The transaction cost theory believes that collective actions can help decrease cost and increase
profitability in the sector. Mahila Arthik Vikas Mahamandal (MAVIM) took an initiative to open
community managed agro service centers with the objective of providing quality input at a
reasonable price.

The study found that the agro-service centers promoted by MAVIM are doing well and being a form
of collective, have helped farmer’s in reducing the cost of operation and increasing their bargaining
power in the market.

Mahila Arthik Vikas Mahamandal (MAVIM) took an initiative to open community-managed agro-
service centres with the objective of providing quality input at a reasonable price. MAVIM is an
organization promoted by the State Women’s Development Corporation of Maharashtra. The
mission of the organization is ‘[t]o bring about gender justice and equality for women, investing in
human capital and the capacity building of women, thus making them economically and socially
empowered and enabling them to access sustainable livelihoods’. The organization believe that
economic empowerment through collective actions is the key to women empowerment.

MAVIM implemented Tejaswini Maharashtra Women Empowerment Programme supported by

Government of Maharashtra and International Fund for Agricultural Development (IFAD) in 34 rural
district of Maharashtra from 2007 to 2017. The institutional model implemented under Tejaswini is a
three-tier institution, that is, SHG at the member level, village-level committee (VLC) at the village
level and community-managed resource centre (CMRC) at the cluster level.

agriculture. The transaction cost theory believes that collective actions can help decrease cost and
increase profitability in the sector. MAVIM took an initiative to open community-managed agro-
service centres with the objective of providing quality input at a reasonable price. Hence, promotion
of agro-service centres was one of the key interventions to support farmer’s income.

The most feasible way of increasing productivity from agriculture can be achieved by increasing the
productivity of the land. It is worthwhile to note that the productivity of crops in India is quite low as
compared to developed countries. Farmers need hand-holding services to increase productivity for
their crops.

key services required for agriculture operations, it was reported that six main services provided by
NGOs, namely information support, input supply, training, technology transfer, credit and
monitoring and evaluation of extension activities, were perceived as relevant by farmers (Buadi et.
al. 2013).

Indian agriculture needs support services for its improvements.

SHGs collectively formed a three-tier structure called federation. These federations were also an
important withdrawal strategy for the facilitating organizations. The idea was to form self
sustainable organizations.

These agro-service centres are SHG-led organization, similar concept worked for them as well. In a
paper on discussing the commons, it was argued that commons are socially constructed and we
need institutional entrepreneurs to govern commons and manage resource mobilization

groups can lead to transaction cost reduction and that is the most important incentive for collective
action by the group members due to the sharing of cost and increased social bonding.
The concept of SHGs was based on homogeneity and it played an important role in defining the
success of SHG movement.

Agro-service centres can be defined as a service delivery system to cater to the needs of farmers in
areas such as the hiring of machinery, with operator, labour support, providing inputs and soil
testing service support.
The main aim of agro-service centre was thus to providing integrated services and supplies in rural
areas (Puri, Zagade and Sawant 2008) according to local needs, that is, quality seed, fertilizers,
pesticides, engineering materials, provide the employment to the rural peoples and also advice
farmer regarding efficient utilization of land, labour, capital, assessment of land value, soil testing,
farm management, soil and water conservation, crop rotation and livestock.
agro-service centres helped in retaining educated people in rural areas. It helped in generating
employment opportunities in the villages.

It has been realized that farm mechanization level needs to be improved if we want to increase the
productivity in agriculture.
Some agro-service centres provide machinery on custom hiring basis to farmers on time and at
reasonable rates.
It was set up with the objectives of providing self-employment to educated youth and custom hiring
services to the resource-poor farmers in Punjab. It need to be noted that these early steps in this
direction has helped Punjab in becoming one of the progressive states in the field of agriculture. In
another study on studying the cost benefit analysis of CHCs in Punjab showed that all thecentres
were running in profit.

it was concluded that the increasing trend in establishment of CHCs at village level has ensured
availability of modern agri-cultural machinery for different field operations to small and marginal
farmers.
In another study on CHCs, it was concluded that CHCs have helped farmers in increasing the
profitability by increasing areas under different crop, their growth rate and so on.

This theory believes that collective action will bring economies of scale and will reduce the
transaction cost. This kind of intervention helps small farmers and increases their bargaining power.
This led to more. Incentives for the small and marginal farmers. In agriculture, the transaction costs
consist of:

• search and information costs,

• bargaining and decision costs and

• recovery and repayment cost

Looking at the need for supportive interventions to promote agriculture production and support
farmers, the agro-service centres were established by CMRCs of MAVIM.
This study was meant to explore the role of agro-service centres in promoting

livelihood of farmers.

The objectives of the study are:

• To understand and document the functioning of agro-service centres.
• To analyse the role of agro-service centres in enhancing agriculture activities.

Two better performing districts in terms of promotion of agro-service centres were selected. As per
the details available, Yavatmal team was the pioneer in starting the concept of agro-service centres.
Thane team followed it. Yavatmal team has opened 10 agro-service centres, one in each block.
Thane team has been able to open four agro-service centres.

All CMRC of Yavatmal and 4 CMRCs of Thane are running this activity for last 2 years. Their profit
level has reached up to `100,000 each. Looking at the good performance of these two districts, data
for this study were collected from various blocks of Thane and Yavatmal.

Services Required by Farmers in the Agricultural Value Chain

The objectives of the agro-service centres were:

• To provide quality inputs to the farmers particularly small and marginal farmers.

• To provide information better package of practices for the crop being grown in the particular
region to enhance the crop production.

• To increase profit by increasing yield and reducing input cost.

• Providing agriculture equipment on service basis.

• To make them understand and follow the safety rules.

• Financial sustainability of CMRCs.

• To introduce new technology.

The centre has various staff to take care of the functioning of agro-service centres:

1. Master community resource person (M-CRP): One person is responsible for five villages.

2. Community agriculture manager (CAM): One person for one cluster. It was interesting to note that
only females are appointed as CAM.

In last three year of operations, the agro-service centres of MAVIM have started generating a good
amount of profit. The data from the team suggest that all 10 agro-service centres have generated a
profit of more than `325,753 and around 2,606 beneficiaries have got benefitted from these
interventions in the year 2015–16.

The total saving amount by the farmer has also increased up to `4,975,905.12. This indicates that this
activity has a good potential to generate profit for the agro-service centres as well as the CMRCs.

Tool Bank

objective of starting a tool bank was:

• To provide machinery at the farm gate.

• To enhance the production and productivity of the crops.

• To provide services of high-tech machinery to small and marginal farmers in time.

• To mitigate problem of labour.

• Available at reasonable rentals.

• To increase profitability of the farmers.

being run by women.

One of the very important strategies of MAVIM team was to partner with MNCs.The Yavatmal team
has partnered with BASF under their CSR work. They are running a programme named as ‘Krushi
Sakhi’. The programme was launched on 1st April 2017.

Some of the major work conducted under this programme are:

• Women farmer training at the village level.

• Women farmer give techniques supports.

• Awareness about the safety of farmers.

• Increase the yield after the intervention.

• Farm visit by the BASF.

• Women decision making in agriculture sectors.

• Women empowerments by the new techniques of the farming.

BASF team is providing seed to harvest solution to the farmers. Many farmers reported a yield
increase of about 50 per cent by using these techniques. BASF has also promoted a retailer and
dealer level programme known as a Golden circle.
Yavatmal team has also started a Tejaswini Marketing group. This group works for creating
awareness about their products and promoting it in the Yavatmal town. This initiative was taken to
promote the products of CMRC’s.
Advantages of these Interventions:

 Promotion of women empowerment

 Provision of interest-free and low-cost quality inputs
 Timely availability of inputs
 Decreased production cost of farmers
 Increased and good quality production:
 Diversification of livelihood
 Promotion of safety measures
 Sustainability of CMRCs
 Improved fertility of soil