1. Innovations in Agriculture and needs for Skill Development
Tirthankar Nag, IMI Kolkata

2. Introduction Increasing focus on Farm productivity Farm incomes
Sustainable agriculture
Inefficiency and overuse of resources (Banik, 2015)
Average Monthly Income and Expenditure Per Agricultural Household in 2013
Rs./month per household
Size in Hectares
Income from Wages
Net Receipt from Cultivation
Net Receipt from Farming of Animals
Net Receipt from Non-farm Business
Total Income
Consumption
Surplus /Savings
<0.01
3,019 31
1,223
469
4,742
5,139
(397)
0.01–0.40
2,557
712
645
482
4,396
5,402
(1,006)
0.41–1.00
2,072
2,177
477
5,371
5,979
(608)
1.01–2.00
1,744
4,237
825
599
7,405
6,430
975
2.01–4.00
1,681
7,433
1,180
556
10,849
7,798
3,051
4.01–10.00
2,067
15,547
1,501
880
19,995
10,115
9,880
>10.00
1,311
35,713
2,616
1,771
41,412
14,445
26,967
All India
2,146
3,194
784
528
6,653
6,229
424
Source: (Chandrasekhar & Mehrotra, 2016)

3. Agenda
Challenges and Innovations
Skilling Needs

4. Innovation
Evolutionary economics and strategic management have influenced the innovation discourse.
The theory of the firm mentions knowledge as an important driver.
The resource based view views knowledge based capabilities as a competitive asset and a driver for innovation and growth (Almeida & Phene, 2012).
Even with similar resource endowments, there may be a wide heterogeneity in performance (McGahan & Porter, 1997).
Some studies attribute the difference in performance to certain unobserved or latent factors or capabilities (Rumelt, 1991).
In fact certain capabilities play a key role in influencing innovation pathways (Penrose, 1959).
Dynamic capabilities focus on capabilities related to change and innovation (Teece, Pisano, & Shuen, 1997).
There is general agreement that innovation requires knowledge, ingenuity and focus and is capable of being practiced (Drucker, 2002).
Others simply describe innovation as ‘ideas that create the future’ (Kanter, 2006).
Christensen’s classic ‘Disruptive Innovation’ could perhaps be interpreted as those which would make products and services more accessible and affordable.

5. Agriculture and Allied Sectors in India
% of Agriculture, forestry & fishing in
Gross Value Added by economic activity
Source: National Account Statistics, MOSPI
constant prices

6. Labor productivity and wages
Transition in composition of output and occupation from agriculture to non-farm
Worker productivity (at current prices) across different worker
categories in India (Rs./worker)
Year
Agricultural labour
Cultivator
Farm workers
Non-farm rural workers
All rural workers
Urban
821
1,114
1,018
2,294
1,203
3,829
1,788
2,425
2,216
6,248
2,878
8,456
5,040
12,271
9,410
25,822
12,947
38,934
9,246
22,807
17,059
51,789
25,380
89,180
10,480
25,183
19,933
82,990
37,273
1,20,419
33,937
77,144
62,208
1,71,836
1,01,755
2,82,515
Source: Indiastat

7. Crop Productivity, Tonnes/Hectare
Source: OECD

8. Rice Productivity, Tonnes/Hectare
Source: OECD

9. The Agri Value Chain Sowing Seeds (native, commercial. Hybrid, GMO)
Equipment
Finance
Labor
Growing
Fertilizers
Insecticides
Pesticides
Irrigation (sprinkler, drip, others)
Harvesting
Information – weather, practices, markets
Market access and logistics
Post Harvesting
Procurement
Produce marketing
Processing & Retail
Machinery
Advisory

10. Sowing Seeds Equipment Sowing Practices
Farm saved seeds to commercial/certified seeds
Hybrid/BT seeds for certain crops
Equipment
Farm mechanisation
Sowing Practices
Precision farming
Seeds used in lakh quintals
Source: CMIE

11. Growing Fertilizers in in lakh tonnes Pesticides in in thousand tonnes
Source: CMIE
Fertilizers and agrochemicals per hectare are on the rise, though much below other economies.

12. Harvesting and Post Harvesting
Information through digital devices
Weather information
Crop Insurance
Crops
Cumulative wastage (%)
Cereals
4.65 – 5.99
Pulses
6.36 – 8.41
Oil Seeds
3.08 – 9.96
Fruits & Vegetables
4.58 – 15.88
Milk
0.92
Fisheries (Inland)
5.23
Fisheries (Marine)
10.52
Meat
2.71
Poultry
6.74
Post harvesting losses
Storage
Market Access
Financing
Source: Ministry of Food Processing Industries

13. Cropping Patterns Region Present System Net return (Rs/ha
Other cropping possibilities
Net return (Rs/ha)
Kahikuchi, Assam
Rice-wheat
16,749
Rice-toria
22,333
Chhattisgarh
30,291
Rice-potato
67,496
Ambala, Haryana
Soyabean-wheat
29,851
36,399
Sorghum-wheat
13,602
Maize-wheat
22,188
Nasik, Maharashtra
33,378
Rice-groundnut
46,504
Wardha, Maharashtra
25,008
Soyabean-gram
32,327
Faridkot, Punjab
50,388
Rice-mustard
66,887
Ludhiana, Punjab
52,537
63,352
Source: Shukla & Shukla, Scope and Limitations of Crop Diversification in Indian Agriculture, 2007

14. Penetration of Innovations
Sowing
Growing
Harvesting
Post Harvesting
Process & Practices
Sowing techniques
Optimizing cropping systems
Irrigation – drip irrigation etc.
Harvesting time
Logistics & Supply Chain
Inputs
Quality of seeds
Agrochemicals
Balanced usage
Water and energy
Storage
Procurement, distribution & retail
Finance
Credit markets, Microfinance
Kissan Credit Cards
Crop Insurance
Market price
Technology
Agrotech – seed quality, BT
Equipment
Farm mechanisation
Information systems

15. Agenda
Challenges and Innovations
Skilling Needs

16. Skilling Needs
Urban migration and wage differentials towards non farm jobs
Skilling for maintaining and learning from Traditional Practices
In Indonesia, there is a practice of agriculture and pisciculture being carried out together during cultivation.
Understanding information systems
Information about crop yields, crop substitution possibilities, price trends of crops, alternate cropping methods for increasing yield of crops etc.
Skilling for yield improvement
Increasing access to other markets like seeds, fertilizers, pesticides, water etc. through improved credit delivery systems.
Skilling for understanding pricing signals
Increasing access to product markets and establishment of backward/forward linkages.
Skilling for understanding and leveraging risk coverage mechanisms.
Skilling for understanding the agriculture supply chain

17. Skilling Needs Skilling for adopting new technology
Skilling for tapping farm credits and understanding interest rates and other conditions
Access to credit markets
Assessing credit quality is a major issue for the lender in the case of farm credits
Signalling mechanisms and proxies

18. Thank You Contacts International Management Institute Kolkata,
2/4 C Judges Court Road, Alipore,
Kolkata
Thank You
Contacts
Tirthankar Nag