CN22 Nyonika Singh
CN22 Nyonika Singh
STRATERGY DOCUMENT
INCREASING INCOME OF PEOPLE
ENGAGED IN AGRICULTURE
Presented by-
Nyonika Singh
Contact details-7838134806
PROBLEM STATEMENT
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.
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 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