Congruence of Technologies for Rural Prosperity

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

2. 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

3. Agriculture is in distress • Slow down in agricultural growth after mid 1990s. • Slow down began in 1995-96 for livestock, 1996-97 for crop sector, 1998-99 for fruits and horticulture, 1996-97 for crops other than fruits and vegetables

4. 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

5. 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

6. 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

7. 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

8. Contd../- • During 1983-1999, 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

9. 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

10. 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

11. 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

12. 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.

13. Thank you