Agricultural Diversification and Role of ATMA in Bihar

Dr.K.M.SinghDr.K.M.SinghDirector,Director,

State Agricultural Management and Extension Training State Agricultural Management and Extension Training Institute, BiharInstitute, Bihar

Presentation in the Global Meet for a Resurgent Bihar, Presentation in the Global Meet for a Resurgent Bihar,

19-21 February 2007,19-21 February 2007,

Hotel Maurya, Patna, IndiaHotel Maurya, Patna, India

Historical Perspective

• Post independence, single minded focus on removing shortages and self reliance for basic cereal crops

• Research system served this purpose by delivering dramatic productivity increases by introduction of new varieties and use of chemicals for nutrition and protection

• Training & Visit (T&V) Extension system successfully managed technology transfer to the farmers

• It was believed that “Market Forces” could not adequately address the needs of both farmers and consumers. Regulatory framework was designed to circumvent the market

Historical Technology Dissemination Model

• No market risk for the farmer – Support price system• Firm contract with the government• Neither the research system nor the farmer required any connect with the consumer and its demands.

ICAR R&D system & Agricultural Universities

Create Knowledge

ExtensionTeams

Farmer

Information Flow

Product Flow

FarmerFarmer MandisMandis AggregatorsAggregators

State ProcurementSystem

State ProcurementSystem

ProcessorsBrand Marketers

ProcessorsBrand Marketers

Distributor/Retailers

Distributor/Retailers

ConsumerConsumer

Burdened with this baggage of historical success - search for the new paradigmBurdened with this baggage of historical success - search for the new paradigm

Why the need for the new paradigm?

Falling trend growth rate of agriculture.

Productivity increases are not keeping pace with the rising population trends.

Falling water tables & rising soil salinity.

Soil degradation due to intensive chemical usage.

Piling food grain stocks and increased dependence on oil seed & oil imports.

R&D system should deliver the "increased income aspirations” of the farmers.

India’s factor price advantage & diverse agro-climatic conditions, not leveraged to become a player in the international market.

DomesticDomestic International MarketInternational Market

ConsumerConsumer

Distributor/RetailerDistributor/Retailer ExportersExporters

ImportsImports

AggregatorsAggregators

MandisMandis

FarmersFarmers

ProcessorsBrand Marketers

ProcessorsBrand Marketers

Inadequate information with farmers to plan production– Little or no linkages with the market Research system with limited connect with the market Public actions focused on crisis resolution, not at systemic solution Private sector focus on articulating problem only a few initiatives to show for.

ConsumerConsumer

Ploughing ahead …..times have changed

Myths about Agricultural Research & Extension R&D System is not delivering Extension system has collapsed Need for increased role for private sector Farmers are not willing to change State Government are not responsive

However the Reality is

R&D system has the knowledge base but lacks means of transfer to the farm

Farmer is willing to change, can take technology risk provided he is

insulated from the market risk.

No public support for new initiative leading to collapse of the T&V extension

services.

Few Private sector players operating in limited pockets at best equipped to

play the role of facilitators – NOT YET READY TO LEAD.

Some aggressive state agendas neutralized by inertia in other states.

Framework for Crafting the Research Agenda

R&D agenda should be driven by market demand. Links with the Private

sector can fill in this gap.

Benchmark with the best in the world

Identify regions and crops where we can be better than the best

Evaluate nationally & globally available varieties to select candidates for

propagation.

Adopt and develop package of practices which are locally relevant and

within the resource base of the farmer

Maintain focus on optimizing water usage and rationalized chemical inputs

to build sustainability

Public and private partnership with input companies on the basic research

agenda.

“Redefine research agenda to be in-tune with market demand & leverage India’s Redefine research agenda to be in-tune with market demand & leverage India’s

resource base on a sustainable formatresource base on a sustainable format.”

Only TECHNOLOGY which delivers HIGHER INCOMES for the farmers will SUCCEED!Only TECHNOLOGY which delivers HIGHER INCOMES for the farmers will SUCCEED!

A Possible Roadmap Leverage Bihar’s diverse and favourable agro climatic conditions to create: “Specialized” “Regional” production centers :

Only way of maintaining competitiveness in a world focused on SPECIALIZATION!Only way of maintaining competitiveness in a world focused on SPECIALIZATION!

Specialized Regional production centers RegionRegionCropCrop

VarietiesVarieties

Nutrition/Protection PlanNutrition/Protection Plan

Farmer’s CapabilityFarmer’s CapabilityWater availabilityWater availability

Market LinkageMarket Linkage

Technology Transfer Enablers

Commercialization

Evaluation of promising varieties and hybrids- short listing selection Blueprint for agricultural practices after adapting to local conditions, to suit intellectual & financial means of the farmer Multi locational trials including at farmers’ fields Evaluation of farmer economics model

Technology Transfer

The extension services team - selection and training Farmer education program Demonstration farming

R & D Activities

Ensure market and predictable pricing Timing the harvest to optimize the returns Post harvest management to ensure quality Prompt farmer payment system Ensure “adequate financing” to fund the inputs

What should be the pattern of engagement ?

It has been seen elsewhere that successful commercialization of technology works because there is a demand.

As yet, no established demand for Agricultural technology by the private sector.

“Public- Private Partnerships” rather than pure “Commercial engagements” need to be developed.

Involve private sector in drawing up specific work plan of research institutions.

Leverage both public & private sector resources for reaching out to the farmer

Government market interventions to support new technologies and diversification

Challenges before Extension SystemChallenges before Extension System

To respond to food and nutritional security, poverty alleviation, diversifying market demand, export opportunities and environment

Effective linkages between production and agro-processing for value added products

Sustainable management of natural resources – land and water

Public funding in extension is under considerable strain, getting private funds need of the hour.

System Constraints Extension programs heavily top-down:

Extension field staff, primarily handing out central government funded inputs and subsidies, rather than assisting farmers to increase their incomes

By focusing on staple food crops, extension is mostlysupply–driven rather than being demand– driven or market–driven

Lack of attention to farmer problems; extension system not accountable to farmers

Inadequate technical & managerial capacity, especially among the field-level extension staff posted in the districts and blocks

Absence of any mechanisms to empower farmers Weak involvement with the private sector Weak R-E-F-M linkages

Key Elements of the New Strategy

Shift from food security (i.e., Green Revolution) to diversifying into high-value products India had become self-sufficient in basic food crops Growing domestic market for high-value products; dairy, eggs,

fresh fish, fruits and vegetables, etc.

To implement this new strategy, farmers had to be organized, trained and linked to these new domestic and international markets

Implementing organization pilot tested under NATP was the Agricultural Technology Management Agency or “ATMA” (In Hindi, ATMA mean “soul;” therefore ATMA has become the soul of agricultural development in India and Bihar.)

ATMA was the Mechanism Used to ATMA was the Mechanism Used to Decentralize Extension and Diversify Decentralize Extension and Diversify

Agriculture:Agriculture: Which is Critical to Building a “Market-Driven” Extension SystemWhich is Critical to Building a “Market-Driven” Extension System

Regional and urban market opportunities tend to be “location-specific;” therefore, extension planning must be “bottom-up!”

The ATMA model pilot-tested between 1998-2005; now the Government of India is implementing this “market-driven” extension or ATMA model nationwide in 252 districts and it may be up scaled to cover the whole country in the XIth Plan.

Steps in Implementing the StrategyConduct PRA and then develop a Strategic Research

and Extension Plan (SREP) for each Project DistrictIdentify and evaluate “Success Stories”Determine most promising products/markets

Organize farmers into groupsFarmer Interest Groups (FIGs) at village level & Farmer

Associations (FAs) at block, district & state levelsFarmer leaders are critical to the success of FIGsExposure visits and demonstrations are used to motivate

FIG members.

Investigate markets to identify interested manufacturers or wholesale markets

(i.e., avoid traders; shorten the supply chain to avoid middlemen.)

Building Social Capital Building Social Capital VIS-À-VIS MARKET DEVELOPMENTVIS-À-VIS MARKET DEVELOPMENT

Two basic types:

BondingResearch &Extension

Bridging

Local Markets

Urban Markets

Global Markets

FIG

FIGFIG

FIG

Farmer Federation

FIGFIG

FIGFIG

FIG

FIGFIG

FIG

FIGFIG

FIGFIG

Farmer AssociationFIG

Implementing the Strategy (cont.)

Collaborate with research (e.g. SAUs or KVKs) to develop and test production and post-harvest technologies and then train FIG members to produce to contract specifications.

Public-Private Partnerships are emphasized at block level; emphasis is on “contract farming” between FIGs and companies (e.g. Pepsi and Hindustan Lever are contracting for basmati rice and vegetables for processing)

Some other companies are doing this on a smaller scale in Bihar ( Aromatic crops, exotic vegetables, organic farming etc.)

Example-Lemon grass oil production Flow Chart

Lemongrass Saplings from CIMAP, Lucknow

or FFDC, Kannauj

Root stock Growing in nursery in 1/5th area of

intended crop

Transplanting 6-8 month old plantletsin the field

Harvesting for distillation every 2-3 months

depending on growth of crop

Field Distillation for

Lemongrass oil

every 2-3 months

Up to 5 years

Oil sold @ Rs.300/-

per kg total oil yield

120 kg per year

Krishna and CKP25Varieties most suited

for Bihar

Popularization and technical support from

ATMA, Patna and KVK, Barh

Oil sold to processors after 12 Months

to 5 years

6 M

on

ths

9 M

on

ths

Up to 5 years

12-1

4 M

on

ths

Impact of this ATMA Model of Extension on Impact of this ATMA Model of Extension on Crop Diversification and Farm IncomesCrop Diversification and Farm Incomes (Average changes in production area and income in 28 project districts* between 1999-2004; IIM Lucknow data)

• Horticultural Crops: 12 16%• Oil Seeds: 3 11%• Herbs and Medicinal Crops: 1 5%• Sericulture: 0 1%• Area planted to cereals declined: 55 47%, but

yields increased 14%• During this period, average farm income increased

24% in project districts in contrast with only 5% in non-project districts

*All India figures

Performance Indicators of ATMA Programme in Bihar (Rs./ Household/Year)

Impact Indicators Baseline Actual

Absolute Income Gain In Project Districts 61256 68797

Absolute Income Gain In Non-Project Districts

60512 66951

Net Gain In Household Income In Project Districts household Over Non Project Districts household

744 1846

Per Household Annual Income

Project Districts 89049 99423

Non-Project Districts 93542 85331

Cropping Intensity(%)

Project Districts 145 196

Non-Project Districts 140 174

Benefits Of Adopting New Technologies (%)

Increase In Crop Yield 13

Increase In Farm Income 15

Conclusion: Key Elements of this New Conclusion: Key Elements of this New Extension StrategyExtension Strategy

Refocus some research and extension resources to high-value crops/products, including market assessment

Decentralize extension planning and decision-making; begin by focusing on local and regional market opportunities.

Empowering Farmers—organize and train farmers so they can link to high-value markets; they must get organized to achieve economies of scale and to increase market power.

Reasons for SuccessFarmer friendly approach to ExtensionFarmer friendly approach to ExtensionPartnership with Private SectorATMA Single Window delivery point for Technology.Diversification dictated by market demand only.Judicious Use of Mass media.R-E-F-M linkages strengthened with primary focus on

farmer.Revitalizing the farmers through capacity building, Using farmers and private entrepreneurs as Extension

Agents.Group focus in all the interventions.Effective use of NGO’s, & private sector.Sustainability given due importance, with cost sharing

being the key word in most of the interventions.

ATMA Model : LessonsATMA Model : Lessons LearntLearnt Autonomy, financial flexibility and direct funding Autonomy, financial flexibility and direct funding

resulted in better outcome.resulted in better outcome. Better coordination, Convergence, pooling of Better coordination, Convergence, pooling of

resources and integrated delivery of demand driven resources and integrated delivery of demand driven extension.extension.

Priority settings through the farmers involvement Priority settings through the farmers involvement (SREP , GB and FIAC).(SREP , GB and FIAC).

Strong Research-Extension-Farmer-Market Strong Research-Extension-Farmer-Market (R-E-F-M) Linkage.(R-E-F-M) Linkage.

ATMA an effective platform for Public-Private-ATMA an effective platform for Public-Private-Partnership.Partnership.

SREP as a tool for bottom-up planningSREP as a tool for bottom-up planning Capacity building through need-based trainings, Capacity building through need-based trainings,

exposure visits, demonstrations, etc.exposure visits, demonstrations, etc.

THANKSTHANKS