Role of Private Sector in Agriculture
Agriculture in India is the means of livelihood of almost two thirds of the work force in the country and it has always been the most important economic sector in India. Since independence, the share of agriculture in the gross domestic product has declined in comparison to the growth of the industrial and service sectors. Despite this steady decline of its share in the gross domestic product, agriculture is still the largest economic sector and plays a significant role in the overall socio-economic development of India.
The problems faced by Indian agriculture are fragmented land holdings, geographically dispersed villages, weak infrastructure, lack of good storage facilities, various intermediaries, lack of proper insurance for crops and excessive dependence on the rainfall. A few areas where private sector can add value to this sector are:
a) Irrigation Projects
b) Supply Chain
c) Contract Farming
d) Agro Consultancy and
e) Research & Development
The monsoons play a critical role in Indian Agriculture. Well developed Irrigation Systems, the panacea to the vagaries of monsoon, requires huge capital investments. Here private sector can be roped in to construct and manage irrigation systems on a Build, Operate and Transfer basis.
Private sector participation in agriculture supply chain will make it more efficient and enables the farmer to get a reasonable price for his product. It will also eliminate the existing marketing inefficiency due to multiplayer structure of intermediaries and will also help farmers overcome the challenges of fragmented farms and weak infrastructure.
Under contract farming, the farmer is required to plant the contractor’s crop on his land, and to harvest and deliver to the contractor a quantum of produce, based upon anticipated yield. Towards these ends, the contractor supplies the farmer with selected inputs, including the required technical advice.
Agro consultancy based on franchisee concept is mutually beneficial for consulting companies and farmers. It will bridge the gap in rural India and to provide hands-on solutions to the farming community. It will also educate farmer about the demand for various crops and the sale price of his produce even before he leaves his village.
Private sector participation in agricultural research and development will enhance the quantity and quality of the country’s produce. It will also result in problems in the field being brought directly to the research for solutions and scientific results are quickly transmitted to the field for trial, adaptation and implementation.
Agriculture in India is the means of livelihood of almost two thirds of the work force in the country and it has always been the most important economic sector in India. Since independence, the share of agriculture in the gross domestic product has declined in comparison to the growth of the industrial and service sectors. Despite this steady decline of its share in the gross domestic product, agriculture is still the largest economic sector and plays a significant role in the overall socio-economic development of India.
The problems faced by Indian agriculture are fragmented land holdings, geographically dispersed villages, weak infrastructure, lack of good storage facilities, various intermediaries, lack of proper insurance for crops and excessive dependence on the rainfall. A few areas where private sector can add value to this sector are:
a) Irrigation Projects
b) Supply Chain
c) Contract Farming
d) Agro Consultancy and
e) Research & Development
The monsoons play a critical role in Indian Agriculture. Well developed Irrigation Systems, the panacea to the vagaries of monsoon, requires huge capital investments. Here private sector can be roped in to construct and manage irrigation systems on a Build, Operate and Transfer basis.
Private sector participation in agriculture supply chain will make it more efficient and enables the farmer to get a reasonable price for his product. It will also eliminate the existing marketing inefficiency due to multiplayer structure of intermediaries and will also help farmers overcome the challenges of fragmented farms and weak infrastructure.
Under contract farming, the farmer is required to plant the contractor’s crop on his land, and to harvest and deliver to the contractor a quantum of produce, based upon anticipated yield. Towards these ends, the contractor supplies the farmer with selected inputs, including the required technical advice.
Agro consultancy based on franchisee concept is mutually beneficial for consulting companies and farmers. It will bridge the gap in rural India and to provide hands-on solutions to the farming community. It will also educate farmer about the demand for various crops and the sale price of his produce even before he leaves his village.
Private sector participation in agricultural research and development will enhance the quantity and quality of the country’s produce. It will also result in problems in the field being brought directly to the research for solutions and scientific results are quickly transmitted to the field for trial, adaptation and implementation.