Accelerating Agriculture productivity in India - Issues and Opportunities

India and Agricultural productivity In the past 50 years, Indian agriculture has undergone a major transformation, from dependence on food aid to becoming a consistent net food exporter. Power availability vs Land productivity Rice yield (t/ha) Wheat yield (t/ha) Agricultural growth has improved in the recent years (@3.6%), still Productivity levels shows that India has underperformed relative to its potential.

Key challenges in front of us To feed the Growing Population India would need an annual food grain production of 333 Million Tonnes by 2050 1 . Farmers move out to other jobs which offer them more money and esteem To ensure Farmer sustainability . 2 Double farmer income

Key challenges in front of us 1 . Feed the Growing Population 2 . By accelerating Agriculture Productivity and Profitability Ensure Farmer sustainability

How can we define Agricultural Productiv ty

Are we really talking about ? Are we really talking about Making the land More productive

Or more retained income by farmer without proportional increase of MSP ?

Or more retained income by farmer without proportional increase of MSP ? or both ?

Defining Agriculture Productivity Common definition Agriculture productivity is mostly explained in terms of “Yield per hectare” which is only a ‘Partial measure of productivity’ Input Factors Output Factors Land area under Cultivation. Direct/indirect labour force. Mechanization & other Capex Seeds and Fertilizers Water resources/ Irrigation efforts Pesticide & other chemicals used Actual production of Main crop Revenue from Sub crops Revenue from sale of By-Products Impact on Nature and land Investments for next season. Revenue from animals (if any).

Defining Agriculture Productivity Common definition Agriculture productivity is mostly explained in terms of “Yield per hectare” which is only a ‘Partial measure of productivity’ Input Factors Land area under Cultivation. Direct/indirect labour force. Mechanization & other Capex Seeds and Fertilizers Water resources/ Irrigation efforts Pesticide & other chemicals used Output Factors Actual production of Main crop Revenue from Sub crops Revenue from sale of By-Products Impact on Nature and land Investments for next season. Revenue from animals (if any).

Defining Agriculture Productivity Common definition Agriculture productivity is mostly explained in terms of “Yield per hectare” which is only a ‘Partial measure of productivity’ Input Factors Output Factors Land area under Cultivation. Direct/indirect labour force. Mechanization & other Capex Seeds and Fertilizers Water resources/ Irrigation efforts Pesticide & other chemicals used Actual production of Main crop Revenue from Sub crops Revenue from sale of By-Products Impact on Nature and land Investments for next season. Revenue from animals (if any). Often missed out factors Agricultural Productivity should be defined more in terms of total revenue earned by the farmer. Therefore

{ } Farm Productivity - x A simple measure of Agriculture Productivity of a farm land would be the Retained earning of the farmer, calculated as below: Retained earning of the farmer Price per Kg realised = { } - Cost per Kg incurred Kg per hectare x But this mode of calculation again misses out on some of the Non-monetary inputs/outputs which also play a vital role in determining the long term profitability of a farmer.

{ } { } Farm Productivity - x Retained earning of the farmer Highly Market driven factor. Entire world becoming one market. Storage can stop distress sale. Transparency can fetch better rates. Multi- cropping can bring in more sources of revenue { } { } Retained earning of the farmer Price per Kg realised = - Cost per Kg incurred Kg per hectare x

{ } { } Farm Productivity - x Retained earning of the farmer Highly Market driven factor. Entire world becoming one market. Storage can stop distress sale. Transparency can fetch better rates. Multi- cropping can bring in more sources of revenue Additional earning Animal Husbandry { } { } Retained earning of the farmer Price per Kg realised = - Cost per Kg incurred Kg per hectare x

{ } { } Farm Productivity - x Retained earning of the farmer Seeds Fertilizers Water Electricity Pesticides Labour Mechanisation { } { } Retained earning of the farmer Price per Kg realised = - Cost per Kg incurred Kg per hectare x

Precision Farming can reduce input costs Farm Productivity Precision Farming can reduce input costs Seeds Fertilizers Water Electricity Pesticides Labour Mechanisation Retained earning of the farmer Price per Kg realised = { } - Cost per Kg incurred Kg per hectare x

Bio Farm can offset and reduce costs. Farm Productivity Bio Farm can offset and reduce costs. Seeds Fertilizers Water Electricity Pesticides Labour Mechanisation { } { } Retained earning of the farmer Price per Kg realised = - Cost per Kg incurred Kg per hectare x

{ } { } Farm Productivity - x Retained earning of the farmer Precision Farming High quality seeds Agronomic Practices Natural inputs { } { } Retained earning of the farmer Price per Kg realised = - Cost per Kg incurred Kg per hectare x

Profitability vs Sustainability Till now we are singularly focused on increasing production often at the cost of undermining the Natural resource base. Soil and water degradation may now limit productivity. Yield improvement could be achieved only by using better inputs more effectively. Green manures and Vermi Compost nourishes the soil and enhances fertility. Sustainability factor Agricultural productivity no where considers the value it adds to human prosperity. Eg: An Organic produce might not give high productivity levels yet its being appreciated. Human Prosperity

And this explains the need for an Integrated Approach in farming

Integrated Farming Model Protect from wind losses Primary/Secondary Tillage Fertilizer/nutrients spreading Pesticide/Chemicals spraying Harvesting – Reaper/Thresher Transport of produce to Market Creation of Bunds. Run water pumps. Creation of Rain harvesting Creation of Bunds Water retention/Anti erosion Pesticide/Chemicals spraying Transport of produce to Market Paddy Wheat Maize MEDIUM TERM CROPS LONG TERM CROPS Mango Sesbania Eucalyptus Protect from wind losses /soil erosion VERMI COMPOSTING Manure Residues Fodder SHORT TERM CROPS Watermelon Veggies Tubers ANIMAL HUSBANDRY Cattle Poultry Fishery WATER MANAGEMENT Land Preparation: Tilling, levelling Transport of produce to Market Creation of Ponds. Transfer of Inputs & residues

Mechanization in todays Agri value chain Selective Nutrition Bio Farm initiatives Minimum tillage Balancing Nutrients Water retention Anti erosion measures Soil erosion banks Seeding Mechanise Colourband Others Chemical Pesticides Centralised On farm Climatic conditions Transportation To storage To market Mandis Govt. State Central Markets Support pricing Subsidies R & R saving Irrigation Harvesting De weed Storage Sorting & Grading Marketing Mechanisation PARTIAL Transport to store Rice/wheat Soya Orchards Vineyards application Land Preparation Secondary Tillage Seeding Land leveling Fertilize

Expanding the Mechanization Spectrum Sorting & Grading Secondary Tillage Seeding Irrigation Harvesting Marketing Support pricing Water retention Rice/wheat Mechanise Minimum tillage Water saving Soya Orchards Colourband Subsidies Anti erosion measures Others R & R Vineyards Mechanisation COMPLETE Balancing Nutrients On farm Chemical Soil erosion banks Centralised To storage Mandis Bio Farm initiatives Selective application Transport to store Govt. Mechanise Land leveling Selective Nutrition To market State Climatic conditions Central Land Preparation Fertilize Pesticides De weed Storage Transportation Markets

Four pronged approach

{ } Key to Agriculture Prosperity x Ensure Farmer sustainability Feed the Growing Population Agriculture prosperity of the Nation More retained earnings per Kg of crop = More Kg per hectare x { }