CASE STUDY

STRATERGY DOCUMENT
INCREASING INCOME OF PEOPLE
ENGAGED IN AGRICULTURE
Presented by-
Nyonika Singh
Contact details-7838134806
 PROBLEM STATEMENT

The issue is that the people

The problem that our country is India has around 92 million with less than 1 hectare of land
facing is the decrease in agricultural households, out of had more monthly spending
agricultural Income of the which 70% houses own 1 or less than income leading to
farmers. than 1 hectare of land and 11% indebtness which implies that
Average annual increase in own 2 hectares, which means the farmers not only have low
agricultural labour has that economy consists of mainly income but also lower income
decreased due to inflation. small and marginal farmers than the income of the non
farming sector.
OTHER PROBLEMS FACED BY THE SECTOR
Since the majority of farmers own less that 1 hectares of
land there is no scope of investment, urbanization or
leveraging the market
Some problems that are faced are-,lack of infrastructural
facilities, marketing, poor supply chains, lack of irrigational
projects, inadequate returns due to the inability to access
market.

As per NITI Ayog, India faces massive loss of produce of more

than RS. 90,000 cr in post harvest due to the lack of storage
facilities

Merchants take care of transportation of the produce and

farmers don't benefit from this.
Due to the inadequacy of the cheap credit sources ,farmers
often turn to moneylenders who charge high rates of interest
leading to a debt trap
lack of knowledge and awareness regarding soil
fertility,government schemes,zero balance bank acoounts etc
 MAXIMIZATION OF REVENUE
The first alternative is to maximize the revenue from farming-

01 In order to maximize revenue a crop should be selected on the basis of its global demand, supply, inventory
Crop selection
levels, currency rate, trade flows, freight rates, interest rates etc however majority of farmers lack such
knowledge and awareness which leads to them producing the same crop over a large piece of land leading to
over production, increased competition etc.
Govt should launch different schemes and programs like a 'price information and market intelligence system
for farmers’ produce” and disseminate it to them. This can be done through various channels like mobile
applications, text messages, electronic displays in mandis. This initiative would help farmers make an informed
decision while selecting and selling their produce.

02India is the 2nd largest producer of fruits and vegetables but only 2% of the produce is being processed. This is
Export Orientation
due to the lack of cold storage facilities, transportation and branding due to which around 30%of the
produces is destroyed.
India's agriculture supply chain is severely poor and only contributes to 2.27% of food exports
In the past years, not much funds were allocated to storage and hence it is necessary to give more funds to
this sector along with 35-50% subsidy. The Govt can also enter into contracts with corporates on behalf of the
farmers as they would provide better facilities of storage and transportation.
 MINIMIZING COSTS
ENABLING FARMERS TO FOCUS ONLY ON PRODUCTION
Since the process of making the food available to the people is cumbersome, It is necessary to ensure that the
farmers focus their resources and and mainly involved in production and within 3 years they would be able to
multiply agricultural income in terms of economic value. This means that if the functions of procuring raw
material, funds for agriculture, irrigational facilities, market linkages, supply chain, cold storages etc. is managed
by corporates or social organizations nearly 500 million people would be available for value addition activity
The corporates can enter into contracts with the farmers to carry out various functions which would benefit
every party involved.
These firms can even train the workers and provide then with the necessary skills and can provide credit
facilities as well.
This would also increase the involvement of youth in agriculture if corportates take by this activity.

HIGHER PRODUCTIVITY
There is a need for technological intervention through drip irrigation, precession farming etc. to reduce the cost of
inputs. Ensuring adequate availability of funds through during peak season to avoid black marketing is also
necessary
Ensuring 0 tax on all the participants of the value chain of manufacturing to encourage people from
taking up farming and reducing the cost of the exsisting farmers
 PROMOTING ALTERNATIVE SOURCES OF INCOME
It is necessary to ensure that the farmers have alternate sources of income which would help them not only during
the time of crisis but also during off peak season. These sources act as insurance for the agricultural sector.

DAIRY FARMING FINANCIAL LITERACY

The number of cattle in our country is very high Trusted organizations like LIC and post offices can educate the
however the productivity isn't. The govt should provide information to the farmers ans they would become a
invest in developing a more formal breeding prime participant in economic growth
sector. Private sector is hesitant to invest in this
BIOFUEL
area and hence government incentives are India imports 84% of oil and 56% of gas.There is a need to reduce
necessary to encourage investment. import dependency for meeting energy requirements.This can be
done through increase in investemnt to develop renewalble
CROP INSURANCE
energy,microbal plants,animal material to produce ethanol,green
At present government provides insurance
diesel,bio deisel which is not only envirnment friendly but also
against rainfall, temperature, crop loss etc.
would meet energy requirements,generate employement in
However, there is a need to develop a more
different areas,inrease farm income and reduce foreign
robust model which covers pest attacks,quality
depedency for energy requirements.
issues.

TREE BASED AGRICULTURE -It is a practice where the farmers plant trees for fruit, timber etc. as insurance
around their lands to avoid loan sharks and getting into financing trouble.
 FARMERS-PRODUCERS ORGANISATIONS(STATUS QUO )
FPO is an organization, where the members are farmers itself. Farmers Producers Organization provides end-to-end
support and services to the small farmers, and cover technical services, marketing, processing, and others aspects
of cultivation inputs.
The idea behind the Farmer Producer Organizations (FPO) was that “Farmers, who are the producers of their
agriculture products, can form the groups and can register themselves under the Indian Companies Act”. 

Benefits-
1. Small farmers can combine their land to produce on large scale and receive bulk orders, use bulk
transportation to reduce marketing cost, post harvest losses can be minimized, pooled recourses would
provide easy access to modern technology and financial resources and this would help the farmers in
achieving economies of scale.
2.FPO'S doesn't mean integration of land but its the aggregation of irrigation, marketing forces, higher crop
productivity and value addition aspects of agricultural produce.
3.Around 3000 women in rural Telangana generated a turnover of 15.5 crores through FPO's

Problem -
Even though many policies regarding FPO'S have been launched by the government, most of them are not
implemented properly due to the following reasons
There are less number of FPO's formed as of now due to the lack of awareness among the farmers, required
technical information, inadequate capital and infrastructural facilities etc
 HR
DEVELOPMENT
CREDIT Training and TECHNICAL
GUARANTEE
awareness SERVICES
creation
Banks,NBFC's, Inputs,planning,
NABKisan adivisory,wareho
use

FUTURE COURSE OF
ACTION
MARKETING GOVT POLICIES
AND INFRA
Processing,
DEVELOPMENT
Procurement, RETAILING
commodity need govt
Direct
market schemes,capital to
marketing,
dev. infra
rural retail
points
SOURCE-NABARD
 VIABILITY CRITERIAS
Criteria 1-Cost- Increase in average annual income per million rupees spent by
government

Criteria-2-Effectiveness-Extent to which the schemes actually benefit the farmers

Criteria-3-Timelines-Time taken to increase the average annual income of farmers

Criteria-4-Implementation Feasibility-The degree to which the plans can be

bought to action in practical life.
 TABLE OF CRITERIAS
ALTERNATIVE 3-
ALTERNATIVE ALTERNATIVE Alternate ALTERNATIVE 4-

1-Maximizing revenue 2-Minimizing cost sources of FPO's

income

CRITERIA 1-Cost 2 1 3 2

CRITERIA 2-Effectiveness 4 5 4 5

CRITERIA 3-Timelines 2 3 2 4

CRITERIA 4-Implementation
4 4 5 4
Feasibility

TOTAL 12 13 14 15
 CONCLUSION
In order to tackle the the issue of "Decreasing
Incomes of people engaged in agriculture",we
have to form large scale Farmer-producer
organizations and get them registered under the
companies act 2013, so that they can be
professionally managed and reap the benefits
under the act to increase there average annual
income in a period of 3 years and average
monthly income in less than a year.
THANK YOU