Indian agriculture is clearly at the crossroads. On the one side is a high road leading to prosperity and rural development that will result from pursuing progressive, growth-oriented policies and investments in the entire value chain; and on the other is a road that inexorably leads to deepening agrarian crisis, avoidable livelihood losses and blunted competitiveness.

India needs to take the high road to prosperity for which it ought to initiate several steps with the aim of lifting agriculture out of its present morass and bringing about genuine agricultural resurgence through higher productivity and production in a sustainable way.

Strategic action plan

There are many enablers for doing this; but it is critical that we have a clear vision for the future and a strategic action plan to follow a road map to realise the vision.

The private sector is in a position to actually play a greater role than hitherto in the farm sector advancement.

This was, in sum, the sense of what came out of high-level panel discussion on the role of private sector in enhancing food security in New Delhi, on April 4, as part of YES Bank - The Hindu Business Line agribusiness knowledge initiative. Renowned panellists representing diverse sections covering inputs, technology, logistics, banking and policy highlighted the daunting challenges farming in India faced and ways and means to meet them in a practical way.

Panel Discussion 1

Role of private sector in enhancing food security – key takeaways: Agriculture is actually the largest private sector enterprise in India with nearly 120 million farm families engaged in this economic activity.

The sector is characterised by fragmented landholding, weak input delivery system, rain-fed cultivation (inadequate irrigation facilities), antiquated agronomic practices, poor rural infrastructure and weak flow of information to growers.

These are some of the daunting challenges the sector faces.

Lack of capacity among growers to address these key risks makes it worse. Farm inputs and agronomy can play a key role in realising agricultural resurgence.

Seed, fertiliser, and pesticide are the Trimurthi (triumvirate) of agriculture, use of which needs to be managed efficiently.

Given the fragmented nature of farm landholding - nearly 80 per cent of growers own just about two acres of land - we have to think, not big but small and micro.

‘Precision farming'

Although smallholder cultivation may not permit scale economies, it allows ‘precision farming' which can help capture value in the marketplace. A combination of water availability through irrigation and drip systems and improved agronomic practices is sure to boost yields. Renewed farm extension services must become a key driver of farm output growth. For meeting the information needs of growers our strengths in information and communication technologies (ICT) can be gainfully exploited.

Awareness

Delivery of price and market information to growers can make them ‘aware' of the market opportunities and turn them into savvy businessmen. An average Indian farmer may be illiterate, but he is nobody's fool.

He is capable if rising to the occasion if invested with capacity.

Post-harvest, the role of private sector can be critical in helping Government manage food procurement and storage. Currently, the Government agencies struggle to undertake procurement (especially of rice and wheat) and incur high carrying costs. Disposal of unconscionable levels of inventory is not only weak but also fraught with uncertainties. A ceiling on procurement is desirable. Banks should be in a position to finance warehousing infrastructure.

Technology infusion

It is already proven that technology infusion in agriculture can elevate the sector in terms of production, productivity and incomes. Infusion of technology seeds in cotton cultivation eight years ago has transformed the moribund cotton sector into a vibrant globally competitive sector. Farmers readily embrace technology if they perceive commercial benefit. Together with information technology, agricultural biotechnology has the potential to transform the country's agriculture scenario.

The world has nearly one billion food insecure people, and India has a fifth of them. Price volatility and marketisation of agriculture are difficult issues to manage.

However, the private sector can step in effectively to handhold small and marginal growers at pre-harvest and post-harvest stages. Building capacity among growers to face market uncertainties and promote crop diversification is critical, especially to be able to face the emerging risks of global warming and climate change.

Risk identification

Commercial banks, particularly those focussed on agriculture and food sector, are in a position to not only identify risks but also provide services of risk management such as relating to insurance products.

Funding of bulk storage and commodity trade financing are opportunities for banks to step in vigorously. Promotion of food park concept can help improve utilisation of agricultural crops in a competitive manner.

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