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Govt seeks corporate services for farmers

Reports from Andhra Pradesh about the alarming number of farmers committing suicides show at least two gaping holes in the system — spu...

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Reports from Andhra Pradesh about the alarming number of farmers committing suicides show at least two gaping holes in the system — spurious seeds and non-availability of cheap and timely credit. In other words, abysmal extension services.

Though the government has a large fund set aside for extension services (approx. Rs 300 crore) but it seems the same is not being used effectively. And for the first time, there was some thinking on an alternate way of getting it to the farmer. Ten corporates decided to meet the government and find a way of arriving at public-private partnership on providing extension services to the farmers — genuine seeds, modern implements and, most important, an assured market.

At the end of the two-hour meeting, the government agreed to set up a committee which would lead the initiative and frame a model for partnership.

These corporates — ITC, Chambal Fertilisers, TATA Chemicals, Mahindra and Mahindra, among others — have been around for a decade, trying to find their feet in the agriculture landscape of India and have survived. ‘‘We can use their presence in the field, their energy and experience. We can use them as vehicles to get the extension services,’’ said Radha Singh, secretary, Ministry of Agriculture. Besides, some NGOs and government representatives will also be part of the committee.

However, Singh added that this won’t mean it would be taken away from the public domain completely. ‘‘The balance has to be maintained. The corporates will not enter in low-value crops. Till we are able to add more value to these crops, they have to remain in the public domain,’’ she added.

The corporates, meanwhile, are not keen on getting the money directly or getting into the nitti-gritties of handling it. Instead, they are asking for other incentives (see box). But their most persistent demand is simplification of rules to facilitate smooth buy-back from the farmers.

 
Corporate Conditions
   

Presentation was made of some of the corporate models which have stood the test of time.

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Tata Chemicals presented ‘Kisan Kendra’ model, where they cover 35 districts and now plan to cover 100. These training centres offer solutions from growing seeds to post harvest management and marketing of seeds. ITC’s ‘e-chaupal’ allows farmers to sell their produce directly to ITC and the company in turn gives them timely advice to boost productivity.

DCM Shriram’s ‘Hariyali Kisan Bazar’ provides farmers with genuine seeds, fertilizers and pesticides and tools along with facilities for soil testing and pesticide application services.

M.J. Khan, president, Centre of Agriculture and Rural Development, said ‘‘given the inefficiency and fund leakages in Government model of operating through the state governments, alternate models need to be examined seriously’’. ‘‘These corporates have a record of close partnership with the farmers and we could put it to use,’’said Singh.

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