AGRARISMO

AGRICULTURE DOES NOT LACK RESOURCES. IT LACKS POLICIES TO ENSURE THAT FOOD IS PRODUCED WHERE IT IS NEEDED AND IN A MANNER THAT SUSTAINS THE LIVELIHOOD OF THE RURAL POOR.

80% of all farmers are small or marginal & work on only 40% of available cultivable land.

The average size of agricultural land holdings has decreased from 2.3 hectares in 1971 to 1.2 hectares in 2011.

Agriculture employed 70% of the total workforce but contributed only 13% of the GDP.

Scientific & commercial farming are not very successful due to small land holdings.

Problem statements:

FUELLING SELF SUFFICIENCY OF AGRICULTURAL SECTOR OF INDIA THROUGH AGRICULTURAL REFORMS IN FORM OF AGRICULTURAL CORPORATION OF INDIA.

• A corporation under Ministry of Agriculture that will look after every aspects of agriculture keeping farmer’s interest and agricultural demands in mind.

Agricultural Corporation of

India

(ACI)

• Large farms will be developed by land procurement & cultivated according to plans developed by ACI.

• All investments & resources to be provided by ACI.

• Farmers will be given their shares according to land.

Working of ACI

• Raised agricultural productivity per unit land.

• Improvement in Farmer’s condition.

• Sustainable production using scientific methods. Benefits

Summary of proposed solution:

A CORPORATION FOR MUTUAL BENEFITS OF BOTH FARMERS AND GOVERNMENT

Farmers Government

Working in fields as an employee seriously.

Following the guidelines of ACI.

Invest money and provide resources.

Ensure considerable MSP.

Provide best scientific assistance to farmers.

No risk of crop damage.

Salaried employment.

Family members can work in other sectors.

Raised and sustainable agricultural productivity.

Expanding international trading.

Price control in market.

A farmer can not sell crops according to his will and needs.

A farmer can not sell the crops on his own price.

A group of farmers can refuse to work accordingly.

High capital is involved.

Crop damage will lead to a big loss.

MANAGEMENT AND CORPORATION STRUCTURE

Ministry of Agriculture

Agricultural corporation of India

Advisory & Administrative

team

Human resource

team

Technical team

Financial team

Marketing team

Administration

Asset management team

Coordination team Technical team Transportation &

storage team

Central management team:

Regional organisation:

FUNCTION OF CORPORATION

•Ensuring the work completion of individuals. •Land procurement.

•Ensuring overall plan implementation.

Advisory & Administrative team

•Recruitment of employees & planning their work. •Managing the corporation.

•Planning the action schedule.

Human resource team

•Research & development activities. •Providing proper seeds, fertilisers & machines to farmers.

• Ensuring proper & scientific cultivation of land. Technical team

•Maintaining proper investment in each sector. •Maintaining income statement, cash flow and balance sheet.

•Maintaining capital uses & loan summary. Financial team

•Market research & analysis. •Making pricing and distribution strategy.

•Realising opportunities. Marketing team

IMPLEMENTATION OF PLAN

Land procurement Land analysis Development of

large farms

Development of agricultural plan

Providing resources

Ensuring proper and scientific cultivation

Ensuring safety of crops using pesticides

Harvesting of crops with minimal post

harvesting loss

Marketing of products & giving farmers their shares

according to land and production

INVESTMENT & PROFIT ANALYSIS:

Plan implementation on 2 lac hectares of cultivable land: (crop example is wheat)

Production before implementation= 560000 tonnes (2.8 tonnes/hectare) (average in India) Production after implementation= 800000 tonnes (4 tonnes/ hectare) (assumed) Share of farmers= ₹ 756 Cr. (560000 tonnes* ₹ 13500/tonne) (Share according to previous production as farmers are not investing money) Total investment including expenses on corporation= ₹ 250 Cr. (assumed)

Earning from sell to PDS= ₹ 68.32 Cr. (112000tonnes* ₹6100/tonne) (only 20% of previous production is required for PDS & sell will be at rate fixed government i.e. ₹ 6100/tonne for wheat) Earning from sell to market= ₹ 997.6 Cr. (688000tonnes* ₹ 14500/tonne) (average market price) Total profit ≈ ₹ 60 Cr.

SWOT analysis of plan:

OPPORTUNITIES:

THREATS:

WEAKNESSES: STRENGTHS:

RISKS AND MITIGATION

• Plan implementation on a small scale for checking its sustainability.

• Government will invest money, seeing mutual benefits of both farmer & government.

High capital involved

• Provision of Bail out packages in case of crop failure. Crop failure

• A conflict management team to deal with farmers, their small problems and demands.

Conflicts between farmers

• Maintaining cordial relationship with farmers.

• Incentives in case of very good production & fixed salary even in case of crop failure.

Reluctance of big farmers

FAR REACHING IMPACTS OF ACI

Impacts:

Food security, agriculture prosperity and increase in GDP share. Improvement in farmer’s living condition. Improvement in economic condition of nation. Freedom from middleman and thus products reaching consumers at lower prices.

Reach:

Starting from a district/state, the plan will be implemented in most of the parts of country. The plan affects a wide range people from poor farmers in remote villages to sophisticated consumers in metropolitans. It will help India to bag the developed India tag sooner.

References:

Gulati, A. & Jain, S. (2012, December 20). Credit inclusion, farm lease and forming clusters can help small farmers overcome poverty much faster. The Economic Times. Retrieved from http://articles.economictimes.indiatimes.com/2012-12-20/news/35933641_1_small-farms-farm-output-farm- lease Agriculture in India http://en.wikipedia.org/wiki/Agriculture_in_India The Nature of Co-operation. Craig, J. G. Black Rose Books, Montreal. 1993. (Book) Sharma, V.P. (2012). Accelerating Agriculture Growth for Inclusive Development. Vikalpa, 37(1). Retrieved from http://www.iimahd.ernet.in/assets/upload/faculty/161638648Vikalapa%20Paper%202011.pdf Planning Commission, Government of India. (2008). Eleventh Five Year Plan (2007-2012). Retrieved from http://planningcommission.nic.in/plans/planrel/fiveyr/11th/11_v1/11th_vol1.pdf