Dr.B.Gangaiah Centre for Good Governance Taj Deccan, Hyderabad

 Governance is the exercise of economic, political, and administrative authority to manage a country’s affairs at all levels. It comprises the mechanisms, processes, and institutions through which citizens and groups articulate their interests, exercise their legal rights, meet their obligations and mediate their differences. UNDP (1997) Governance Components Accountabilit y and Transparency Improving Service Delivery Technology and System Improvement Financial Manageme nt and Budget Sanctity Public Service morale Incentivizing Reforms Anti Corruption Rule of Law

Judiciary Media Political parties Judiciary Executive Civil Society Social Orgns. Private Sector Media Legislature Stakeholders in Governance Governance is too important to be left to the government....

 Agricultural land m.ha ( ) m.ha ( )  Arable land m.ha (China m.h)  Share of agriculture in GDP 51.4% ( 1st Plan) to 15.2% ( 11 th plan ) and 13.7% in  Percentage of irrigated area 17.1% ( ) % ( ).  Cropping intensity % ( ) % ( ).  Average size of holding 1.33 ha( ) to 1.16 ( )

 Operational holdings 129 million( ) to 138 million in (Ag.Cen 2011)  Investment in agriculture as percent of Agr.GDP - 6.9% in first plan to 18.86% in 11 th plan.( prices)  Public investment 4.9% (6 th plan) to 3.5% in 11 th plan  Private investment increased from 5.2%( 6 th plan) to 15.1% in 11 th plan  68.8 % of total population depend on Agriculture  Contributes 12% of exports.

 Sustaining investment in Agri-infrastructure  Input delivery systems  R&D and Extension  Marketing  Subsidies  Institutional arrangements  Technology  Natural Resources management  Climate change  Human resources development

 Increasing investment in infrastructure- irrigation, Storage,transportation etc.  Sustaining investment in Public and Private- composition, quality and efficiency  About $18 billion spent on input subsidies and only $7 billion on irrigation, storage, R&D, extension in (Mckinsey)

 APMC inefficient, middleman exploitation- improve competition from private  use of ICT in price discovery-IFFCO Kisan Sanchar-  Value Chain Devt from harvest to final consumption-from Farm to plate  linkages along the value chain- production- processing-marketing- consumption  Output prices-market determined, Government determined(MSP).  Distortionary effects of MSP,-encouraging inefficient production- huge financial burden on the exchequer - no commensurate benefits to the farmers and consumers.  Need to reform the MSP regime towards encouraging efficient farming and diversification of farming systems.  The creation of an independent regulatory agency to set support prices within a fixed fiscal framework, responsive to consumer needs and preferences.

 Input Delivery systems- low quality seeds, fertilizers, pesticides.  Credit supply-insufficient and delayed supply  Innovative credit delivery including mobile based, need and crop intensity based.  Labor Productivity- rising cost,MNREGA

 Risk in agriculture-production and marketing risks.  Production risk due to low irrigation and high dependence on weather(rainfall), poor quality of inputs, poor extension support.  Insurance coverage is only 17%  Ranges of insurance products available to farmers are insufficient and inadequate to meet the needs of large number of small and marginal farmers.

 Subsidies- input and output subsidies in the form of fertilizer, Power, and investment subsidies,MSP.  Rationalization of subsidies is another important area for governance reforms  Bihar farmer Shri Deodhar Sharma was “we farmers do not need any subsidy for farming, what we need is good and assured quality farm inputs such as seeds, fertilizers, pesticides and above all these inputs should come to the farmers at the right time for right farming from certified suppliers. Also, we need the best of technology, best of irrigation methods in difficult times and uninterrupted supply of electric power”. Quoted in APJ Kalams speech at ICAR 84 th Foundation Day speech 16,july 2012.

 Climate change-challenge for Food Security in India.  Droughts, floods, erratic rains - greatest impact in rain-fed areas  India's crop yields could fall by 30% by 2050(IPCC)  Need for fundamental changes in our economic and social institutional architecture.

 Productivity of Agriculture- low compared to the world average and that of the best producers in the world. Half of average of China, Indonesia, Malaysia, and Thailand  Potential to raise yield growth from 2.0 to 5.5 percent annually over the next ten years- 10( Mckinsey)  Fertilsers, efficient water management, Seed Quality, precision farming, fertility of soil, better market access, improved post harvest logistics, human resources  We can be more efficient about what we grow, where we grow, and how we grow.

 Our R&D investment of Agr-GDP-0.6%(2-3%)-quality issue  Need to look at alternative/complementary models of service delivery  An appropriate mix of Public and Private Models of extension  With proper R&D and extension can double the average yield from 2.3 to 4.0 tonnes by  Holistic approach, mobile extension(Gujarat).  Fee-based private extension support to medium-size and large farms with the capability to pay.  Public extension for poor and remote areas.  Need-based, location specific research, Smallholder focused

 ICT-huge improvements possible, extension, precision farming already pilots available  Biotechnology – GM, other  Farm mechanization  Need appropriate governance and Institutional arrangements with proper safeguards to ensure sustainability.

 "We have a growing global population and a deteriorating natural resource base." -- Kanayo F. Nwanze, president of IFAD  Watershed development- State, GOI,NGOs  Overexploitation resulted in biotic and abiotic stresses leading to declining productivity.  Water use efficiency key - more crop per drop, conservation, quality of water

 Need to promote growth oriented Land market  Land records and Titling need updating,  Secured Tenure- Secured Ownership of land.  Diversification- Horticulture and Animal Husbandry to meet rising protein demand  Feed Stock, Genetic Improvement  Fisheries: In-land, Deep Sea, Cultivated- Sustainability

 Need a fresh look at the Policy & Governance architecture.  New Governance structure to be enabling, efficient and collaborative partnerships of Government, private sector, civil society.  Promising strategies - forming partnerships with the private and social sectors, mobilizing community participation, using technology to streamline and efficient monitoring operations.  Enlightened leadership should facilitate this process. “For success in all your(our) missions you(we) have to become creative leaders. Creative leadership means exercising the vision to change the traditional role from the commander to the coach, manager to mentor, from director to delegator and from one who demands respect to one who facilitates self-respect”- APJ Kalam

Thank you for attention