IFPRI - Workshop on Best Practices in Contract Farming: Challenges and Opportunities in Nepal - Evolving Models of Research Farmers- Agribusiness Partnerships in India - Neeru Bhooshan

Evolving Models of Research Farmers- Agribusiness Partnerships in India

Presentation Overview

1

Innovative A Models 2

3

4

5 Way Forward

Challenges

ZTM & BPD Role

Snap shot of Institutional Mechanism

Guidelines

Implemented since October 2, 2006

Soft copy available at ICAR webpage:-

http://www.icar.org.in/

Execution

• 3-tier management • Institute level • Zonal level • Central

• Technology Manageme-nt Committees at all levels

• Delegation of powers to execute at respective levels

ZTM&BPD Units at Zonal Institutes/

ZITMC

ITMU at each of the Institute/ PD/Bureau/NRC/SAU

ITMC

Facilitation for

Business

Planning and

Development

Bottom-UP Approach

• Collective Decision Making • Consultative Decision Making • Outsourcing

22

ATMC/ ADG (IP&TM)/

CTMC

Top-to-Bottom

• Decision • Direction • Execution • Guidance

ICAR’s 3-tier IPR Management System

100 + 61

• To identify the potential technologies ready for commercialization and develop into marketable technologies and upscale them into viable agri – business under PPP framework.

• To develop a mechanism for transferring technology from IARI to public /private sector using R&D backup of the institute to help entrepreneurs in commercializing the technology.

• To impart consultancy, training and incubation for creating prospective entrepreneurs and value added manpower.

• To strengthen R&D focus of the institute towards more applied research through backward linkage from industry.

Objectives

2009-10 2010-11 2011-12 2012-13 2013-14

3

10

17 15

45

Technologies Commercialization (2009-14)

Our Licensees

EDP

BGA Biofertilizers

Bio-Pesticide

Tissue-culture

MAS Seeds

CPCT

Hydroponics

Dry Flowers

Entrepreneurship Development Programs

Our Incubates

Incubatee

10

Graduated

4 Assisting Enterprise setup: 17

Our Incubates

Farmers’ Participatory Seed Production

• Public Sector – NSC & State Seed Sector Corporations (Contract

farming) – Research Institutes (Contract farming) Private Sector Own Farm Contract Farming Farmers FPO Cooperatives Community Based

Selection and C P

Source Seed

Production & QC

Monitoring

Processing

Procurement

Research-Farmers Partnership for Seed Production

Price Mechanism

60% Rate at which IARI sells

Farmers

• Technical Backstopping

• Assured Marketing

• No Intermediary

• Best Price

Research Institutio

n

• Feed back Mechanism

• Farmers preference

• Help inAdoption of new varieties

Societal • Skilled manpower Base

• Increase Seed Availbility

• Seed Entreprises

Advantages : Research-Farmers’ Partnership for Seed Production

Farmer Producer Organizations(FPO) beej India Producers Company Ltd

• Collectivization of producers, Especially SMF into FPO

• Integrate small holders into modern supply net- works

• Improved access to Investments, Technology, Inputs and markets

• Spirit of Cooperative with flexibility, autonomy of Private Company

• Ownership of farmers • Open and voluntary membership • Production of identified commodity • Power of aggregation and Increased Bargaining

Power • Value Addition

• Beej India Producer co ltd • 2011, seed production as core activity • 5 Farmers as Directors , one non-voting expert Director of IARI • Rs 68 lac Turnover 2013-14

1000 Farmers seed Value Chain, 20 villages

50 Farmer Interest Groups undertake regular savings, regular monthly meetings on fixed date, have bank accounts, do

inter-loaning

Four Clusters

Two members from each group are elected to the respective cluster. A typical cluster represents 10-12 groups hence 20-25 members

Beej India Producer Company Ltd. Three representatives from each Clusters making a total of 12 Board Members.

Chairman One of the BoD is being elected from the Board as the Chairman

CEO

CEO for day today functioning.

Agri Input support team In process

Expert director From IARI

Organization structure

Processing Team Women SHG

Marketing Sale Counter

Accounts

BoD Committee Procurement, Demand aggregation, Accounts

beej India - Backward Linkage Seed / Fertilizer/Inputs

IARI/ State Level CFA

Distributors

Retailers

Wholesalers

Farmers

Beej-India FPO

1. Reduction of at least 10% cost of cultivation through aggregated bulk

purchases of agri inputs

2. Timely Availability of quality inputs

3. Increase in bargaining power of the members

beejIndia- Forward Linkage – Agri Produce

Farmer (Sells raw farm produce)

Customers

Mandi

Village level Mandi Agents

Raw Semi Processed

Large Mandi Processing Co.

City Mandi/ Modern

trade

Marketing Co.

Retail channel/ Modern trade

beejindia (Seed license)

Seed processing/packaging/marke

ting

Own Processing/Brandi

ng/ Marketing (FSS License)

Sale outlet

Comparison of Different Models of seed Production

Head Normal wheat production

Private Player driven

NSC/SSC Research Driven

Farmer owned FPO Beej India

Source Seed cost

Rs 0.48 Rs 0.90 Rs 0.52 Rs 0.82 RS 0.82

Inputs Cost Rs 5-6 Rs 5-6 Rs 5-6 Rs 5-6 Rs 5-6

Extra (Processing, storage, Packaging)

0 1.20 1.20 1.20 1.20+1

Selling rate 14 16 16.80 19.20 22.5

Net Returns per kg

7.52 7.9 8.9 11.2 13.5

Extra returns 5% 16% 33% 44%

All prices Rs per output Kg Seed rate 1Qtkl/ha, 50Qtl/ha

Integrating Farmers into Processing value chain

Dissemination of

Technology

•Capacity Building •Buyback

Linking Farmers with Input Market

Sustainable business

model

Synergy

Networking platform

Sustainablemodels

Win –Win for all for Prosperity

Role of ZTM & BPD Unit (business Incubator & TTO) : Connecting the Dots

Trust deficit/lack of culture of group dynamics

Financial Linkage

Infrastructure Development

Marketing /Price volatility

Challenges

Technology transfer mechanism (TTO)

Entrepreneurship, Incubation Centres , Partnership

models

FPO-Pilots at NARC Institutes

Research –Farmer partnership for seed Productions

Way Forward