Congruence of Technologies for Rural Prosperity Mruthyunjaya Director National Centre for Agricultural Economics and Policy Research, New Delhi

Agriculture: Key Sector and Valuable Living Heritage Agriculture, the key sector of Indian economy 1% increase in output in agriculture pushes up growth rate of total economy by 0.22% 1% change in agriculture growth results in 0.38% change in growth of industrial output Rural India’s share in total consumption of consumer goods like tooth paste, food-products and consumers durables has exceeded urban India’s share Rural market is a sleeping giant. The whole world is after this

Agriculture is in distress Slow down in agricultural growth after mid 1990s. Slow down began in for livestock, for crop sector, for fruits and horticulture, for crops other than fruits and vegetables

Why slowed down? Some suggestive explanations Deterioration in terms of trade for agri towards late 1990s and beyond Output price intervention in agriculturally underdeveloped regions which have potential for raising productivity and production was not effective Public investment did not increase to keep pace with the needs of output growth Adoption of modern technology was slow

Contd../- Agriculture has become less rewarding and a drag Size of farm holding is fast decreasing, less than 1.41 ha 78% of our operational holdings are less than 2% ha Rural poor still meet 84% of their credit needs from non-formal sources Public extension system has become obsolete

Contd../- The use of purchased inputs by farmers has multiplied by 283 times since independence About 77% of the marketing costs are avoidable 25 to 30% of our produce is wasted Value addition in agricultural commodities is less than 10% Weather uncertainties again reemerging in a big way

Contd../- Quality, labeling, brands, IPR and SPS issues, dumping etc. are increasingly heard Water and market wars ahead! 2005 is a landmark year Broad based dietary revolution taking place

Contd../- During , in the bottom income group, there was an increase in consumption of fruits by 164%, meat, fish and eggs by 122%, edible oil by 89%, vegetables by 50%, and milk by 31% Can agriculture meet such demands of the market-variety, cheap, safe, timely, round the year, stable supply? It can, if it exploits new technologies

Agriculture : New Paradigm Agriculture is to be re-defined, agricultural research and education to be re-oriented It is not only a science of production but also processing, transportation, storage, marketing, labeling, distribution and utilization Congruence of technologies in production, handling, processing, transportation, storage, labeling, branding, marketing, distribution and utilization It is a congruence of technologies of agriculture, industry, health, housing and welfare It is a congruence of technologies, institutions and policies

Contd../- It is a congruence of technologies to cater to the domestic as well as global market It is a congruence of technologies to balance people-planet - profit Congruence of technologies is necessary, but not sufficient. Congruence of all the above important Congruence of technologies for enlighting the minds of poor people is necessary but not sufficient It is for enlightenment and economic empowerment

Role of ICT India has vast geographic dispersion and disparity 6.4 lakh villages, with abysmal physical infrastructure (power, roads, telecom), creaking social infrastructure (health, education) and under developed institutions (banking, marketing) Congruence of ICT technologies can reduce the extension lags, information loss, transaction cost, contribute to wide reach, timely and right decisions, excite youth, and all these lead to growth and prosperity of weaker section of rural India

Contd../- Several ICT based initiatives with mixed results in public, private and co-operative sectors like e- choupal, Gyan Doot, Rural Kiosks etc. Have to become multipurpose covering all the facets of farmer and rural life Total package and consortium of approaches and institutions for maximum synergy is necessary for rural transformation Can this happen? Sooner the better.

Thank you