All rights reserved Tractors and Farm Equipment Limited

Accelerating Agriculture productivity in India - Issues and Opportunities All rights reserved © Tractors

India and Agricultural productivity v In the past 50 years, Indian agriculture has undergone

Key challenges in front of us 1. 2. To feed the Growing Population To

Key challenges in front of us 1. 2. Feed the Growing Population Ensure Farmer

How can we define Agricultural Productiv ty All rights reserved © Tractors and Farm

Are we really talking about Making the land ? More productive All rights reserved

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

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

Farm Productivity A simple measure of Agriculture Productivity of a farm land would be

Farm Productivity Highly Market driven factor. Entire world becoming one market. Retained earning =

Farm Productivity Seeds Fertilizers Retained earning = of the farmer Water { Electricity Price

Farm Productivity Precision Farming can reduce input costs Seeds Fertilizers Retained earning = of

Farm Productivity Bio Farm can offset and reduce costs. Seeds Fertilizers Retained earning =

Farm Productivity Precision Farming Retained earning = of the farmer High quality seeds {

Profitability vs Sustainability Till now we are singularly focused on increasing production often at

And this explains the need for an Integrated Approach in farming All rights reserved

Integrated Farming Model - Primary/Secondary Tillage - Fertilizer/nutrients spreading - Pesticide/Chemicals spraying - Harvesting

Mechanization in todays Agri value chain Minimum tillage Anti erosion measures Land leveling Irrigation

Expanding the Mechanization Spectrum Minimum tillage Anti erosion measures Land leveling Irrigation Water saving

Four pronged approach All rights reserved © Tractors and Farm Equipment Limited. 25

Key to Agriculture Prosperity Ensure Farmer sustainability Agriculture prosperity of the = Nation {

All rights reserved © Tractors and Farm Equipment Limited. 27

Slides: 26

Download presentation

India and Agricultural productivity v In the past 50 years, Indian agriculture has undergone a major transformation, from dependence on food aid to becoming a consistent net food exporter. Rice yield (t/ha) Power availability vs Land productivity 8 2. 5 2 1. 92 1. 72 1. 5 1. 36 1. 68 1. 35 0. 5 4 2 0. 8700000 1. 02 0. 92 0002 0. 6300002 0. 36 1 6 0 Egypt 0 1970 1980 1990 Power availability (k. W/Ha) 2000 v Agricultural growth has improved in the recent years (@3. 6%), still Productivity levels shows that India has underperformed relative to its potential. India SA China Wheat yield (t/ha) 2010 Productivity (MT/Ha) Brazil 10 8 6 4 2 0 All rights reserved © Tractors and Farm Equipment Limited. NZ Brazil India SA China 3

Key challenges in front of us 1. 2. To feed the Growing Population To ensure Farmer sustainability 1. 7 1. 6 1. 5 1. 4 1. 3 1. 2 1. 1 1 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 India China India would need an annual food grain production of 333 Million Tonnes by 2050 Double farmer income Farmers move out to other jobs which offer them more money and esteem All rights reserved © Tractors and Farm Equipment Limited. 4

Key challenges in front of us 1. 2. Feed the Growing Population Ensure Farmer sustainability All rights reserved © Tractors and Farm Equipment Limited. By accelerating Agriculture Productivity and Profitability 5

Defining Agriculture Productivity Common definition Agriculture productivity is mostly explained in terms of “Yield per hectare” which is only a ‘Partial measure of productivity’ Output Factors Input Factors ü Land area under Cultivation. ü Actual production of Main crop ü Direct/indirect labour force. ü Revenue from Sub crops ü Mechanization & other Capex ü Revenue from sale of By-Products ü Seeds and Fertilizers ü Impact on Nature and land ü Water resources/ Irrigation efforts ü Investments for next season. ü Revenue from animals (if any). ü Pesticide & other chemicals used All rights reserved © Tractors and Farm Equipment Limited. 11

Defining Agriculture Productivity Common definition Agriculture productivity is mostly explained in terms of “Yield per hectare” which is only a ‘Partial measure of productivity’ Output Factors Input Factors ü Land area under Cultivation. ü Actual production of Main crop ü Direct/indirect labour force. ü Revenue from Sub crops ü Mechanization & other Capex ü Revenue from sale of By-Products ü Seeds and Fertilizers ü Water resources/ Irrigation efforts Often missed out factors ü Impact on Nature and land ü Investments for next season. ü Revenue from animals (if any). ü Pesticide & other chemicals used Therefore Agricultural Productivity should be defined more in terms of total revenue earned by the farmer. All rights reserved © Tractors and Farm Equipment Limited. 12

Farm Productivity 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 } { x Kg per hectare } v 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. All rights reserved © Tractors and Farm Equipment Limited. 13

Farm Productivity Highly Market driven factor. Entire world becoming one market. Retained earning = of the farmer Storage can stop distress sale. { Price per Kg realised Transparency can fetch better rates. - Cost per Kg incurred All rights reserved © Tractors and Farm Equipment Limited. Multi- cropping can bring in more sources of revenue } { x Kg per hectare } 14

Farm Productivity Seeds Fertilizers Retained earning = of the farmer Water { Electricity Price per Kg realised - Pesticides Cost per Kg incurred All rights reserved © Tractors and Farm Equipment Limited. Labour } { x Mechanisation Kg per hectare } 16

Farm Productivity Precision Farming can reduce input costs Seeds Fertilizers Retained earning = of the farmer Water { Electricity Price per Kg realised - Pesticides Cost per Kg incurred All rights reserved © Tractors and Farm Equipment Limited. Labour } { x Mechanisation Kg per hectare } 17

Farm Productivity Bio Farm can offset and reduce costs. Seeds Fertilizers Retained earning = of the farmer Water { Electricity Price per Kg realised - Pesticides Cost per Kg incurred All rights reserved © Tractors and Farm Equipment Limited. Labour } { x Mechanisation Kg per hectare } 18

Farm Productivity Precision Farming Retained earning = of the farmer High quality seeds { Price per Kg realised Agronomic Practices - Cost per Kg incurred All rights reserved © Tractors and Farm Equipment Limited. Natural inputs } { x Kg per hectare } 19

Profitability vs Sustainability Till now we are singularly focused on increasing production often at the cost of undermining the Natural resource base. v Soil and water degradation may now limit productivity. Sustainability factor v Yield improvement could be achieved only by using better inputs more effectively. v Green manures and Vermi Compost nourishes the soil and enhances fertility. Human Prosperity v Agricultural productivity no where considers the value it adds to human prosperity. v Eg: An Organic produce might not give high productivity levels yet its being appreciated. All rights reserved © Tractors and Farm Equipment Limited. 20

Integrated Farming Model - Primary/Secondary Tillage - Fertilizer/nutrients spreading - Pesticide/Chemicals spraying - Harvesting – Reaper/Thresher - Transport of produce to Market - Creation of Bunds - Water retention/Anti erosion - Pesticide/Chemicals spraying - Transport of produce to Market MEDIUM TERM CROPS LONG TERM CROPS Protect from wind losses /soil erosion Paddy Wheat Maize VERMI COMPOSTING Residues Veggies Eucalyptus ANIMAL HUSBANDRY SHORT TERM CROPS Watermelon Sesbania Fodder Manure Mango Tubers - Land Preparation: Tilling, levelling - Transport of produce to Market WATER MANAGEMENT - Creation of Bunds. - Run water pumps. - Creation of Rain harvesting All rights reserved © Tractors and Farm Equipment Limited. Cattle Poultry Fishery - Creation of Ponds. - Transfer of Inputs & residues 22

Mechanization in todays Agri value chain Minimum tillage Anti erosion measures Land leveling Irrigation Water saving Colourband Selective Nutrition Fertilize Mechanise Pesticides R&R On farm Chemical Selective application Subsidies Others Vineyards Bio Farm initiatives Marketing Support pricing Mechanise Soya Orchards Balancing Nutrients Land Preparation Sorting & Grading Harvesting Rice/wheat Water retention Soil erosion banks Seeding PARTIAL MECHANISATION Secondary Tillage Centralised Transport to store Climatic conditions De weed Storage All rights reserved © Tractors and Farm Equipment Limited. To storage Mandis Govt. To market State Central Transportation Markets 23

Expanding the Mechanization Spectrum Minimum tillage Anti erosion measures Land leveling Irrigation Water saving Colourband Selective Nutrition Fertilize Mechanise Pesticides R&R On farm Chemical Selective application Subsidies Others Vineyards Bio Farm initiatives Marketing Support pricing Mechanise Soya Orchards Balancing Nutrients Land Preparation Sorting & Grading Harvesting Rice/wheat Water retention Soil erosion banks Seeding COMPLETE MECHANISATION Secondary Tillage Centralised Transport to store Climatic conditions De weed Storage All rights reserved © Tractors and Farm Equipment Limited. To storage Mandis Govt. To market State Central Transportation Markets 24

Key to Agriculture Prosperity Ensure Farmer sustainability Agriculture prosperity of the = Nation { Feed the Growing Population More retained earnings per Kg of crop } { All rights reserved © Tractors and Farm Equipment Limited. x More Kg per hectare } 26