The following were some the issues discussed at a high-level panel discussion on the role of private sector in enhancing food security in New Delhi, on April 4, as part of an YES Bank-The Hindu Business Line agribusiness knowledge initiative.

Issue: Given the demographic profile of India, we are faced with the acute problem of fragmented land holdings, which has led to fragmented consolidation and processing. This has another drawback as most of the processing plants, especially in the oil seeds sector, have low capacity utilisation. Lower land holding disrupts the benefits of economies of scale.

Solution: It was suggested that there needs to be some incentive to consolidate land holdings, and the Government should work on a road map for the same at the village level.

Issue: Inadequate storage at key locations.

Solution: While at a macro level, India has adequate storage, the challenge is to quickly proceed with speedy ramping up of storage capacities in identified locations at the micro level. This will help in preventing wastage as scale can bring in storage efficiencies. Similarly, large scale transporting facilities, built on the backbone of an excellent road network will help in reducing costs.

Issue: The nation recognises that it is imperative for good farming practices to be communicated to the farmer.

Solution: One of the best ways to assure that is to undertake contract farming activity for select crops by processing companies, so that they have direct access to good quality output. Empirical evidence points out to higher productivity, better value realisation and substantial knowledge transfer under such arrangements. We need to frame contract farming laws in every state and keep them simplistic to encourage such activities for specialised crops.

QUOTES

G. Chandrashekhar – A tonne saved is a tonne produced. We need to incentivise consolidation.

B.B. Pattanaik – Private sector should join in the national mission of constructing additional storage.

Kevin Eikerman – Large processing facilities will help bring efficiencies.

Source: YES Bank

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