1 / 2

Key Issues

Key Issues. Agriculture and Agribusiness go far beyond production and marketing; value chains and their linkages are complex

enye
Download Presentation

Key Issues

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Key Issues • Agriculture and Agribusiness go far beyond production and marketing; value chains and their linkages are complex • Variables like the quality of land, availability of water, weather (factors like rainfall, temperature etc.), availability of input resources etc. significantly affect the production • Growth in the agriculture sector is stagnant (2%); while GDP is 9 %. To maintain the overall growth it is critical for India to invest in the agriculture sector. Such investments in agriculture are also critical for making the growth inclusive • Millions of small and marginal farmers do not adequately participate in the value chain; many more could become competitive through value chain linkages, some will need transition to outside of agriculture • Primary producers realize just about 30-35% value of their produce • Infrastructure in the rural areas is a major concern and has a huge potential for investments. • Present agro produce marketing system is inefficient and fragmented. Few supply chains are established, making it difficult for the banks to finance • There is a knowledge gap: • Improved cultivation techniques • Markets • Prices • standards, quality, timings etc. • Access to credit • Information • Knowledge exists but its dissemination and application to strengthen public understanding and provide conducive policies is lacking

  2. Ideas, Possible Solutions and Strategies... • knowledge is the key element for each stakeholder involved in the agriculture value chain, including government (built on better practices, developed in collaboration with global and local experience – FAO, UNCTAD, etc.) • Investments should be for creating and sustaining growth in agriculture and rural development • Supply chain model holds significant potential for the growth • Application of innovative ideas • ICT (DrumNet, e-Choupal, Kisan credit card, KCC,Kisan Bandhu) • Risk management tools (Crop and weather risk insurance, futures and options) • Service providers (integration of facilitator companies into value chain) • Group Aggregates (farmers associations, SHG links) • Financing models (contractual farming, warehouse receipts, collateral management, leasing, equity finance, supply and structured commodity finance • National spot and futures exchanges • Focus on practical options and modalities of mitigating risk • Bridge the gap between the public, private sector, involving all actors from farmers, to agribusinesses, traders, financiers and government

More Related