Agri April 2011

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EDITORIAL

A.K. GargEditor-in-Chief

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Shri Y.C. NandaChairmanAFC Ltd.

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Shri L.N. Vasudev RaoGeneral ManagerUnion Bank of India

Shri G.C. SharmaGeneral ManagerBank of Baroda

Shri Gobinda BanerjeeGeneral ManagerPunjab National Bank

Shri E. ShivalingamGeneral ManagerUCO Bank

Shri P.C. SrivastavGeneral ManagerCentral Bank of India

Shri N. Narasa ReddyGeneral ManagerCanara Bank

Shri P.M. KshirsagarExecutive DirectorAFC Ltd.

HonoraryAdvisory Board

In this April edition of Financing Agriculture we take off from our previousissue in which we had carried an article on hydroponics. Hydroponicagriculture is regarded in Sci-fi literature as the only form of sustainable

agriculture in space! Although it is still an evolving science, hydroponicagriculture (growing plants in water solution rather than soil) is spreading fastthe world over. The nutritional requirement of the plants in this system of soil-less farming is met by the nutrient mixtures, called hydroponics fertilisermixtures, added to the water in which the plant roots are kept submerged.These mixtures are made of chemical plant nutrients.

Read about the challenges of this form of agriculture and its relevance in todayssociety in our issue focus.

According to the Food and Agriculture Organization (FAO), sustainableagriculture .is the successful management of resources for agriculture to satisfychanging human needs while maintaining or enhancing the quality ofenvironment and conserving natural resources. The cover story on sustainableorganic farming talks about the problems and constraints of this form ofagriculture.

India has a large and diverse agriculture and is one of the worlds leadingproducers. It is also a major consumer, with an expanding population to feed.For this reason and because of its agricultural and trade policy of first ensuringfood and nutrition security of its population, its presence on the world markethas been modest in relation to the size of its agriculture. Our authors investigateIndias role in the world agricultural scene in a special report.

Most of the early microfinance in India happened through donor andphilanthropic funds. These funds came in to not-for-profit organizations.However as the activities scaled up, it was imperative to move to a commercialformat. Our article on commercialisation of microfinance in India examinesthe growth imperatives and the transformation processes. As also theimplications of the transformation process and its effect on the personalenrichment of the promoters of MFI as well as the governance implications.

Also featured in our spotlight section is an article on the Indian agriculturalpolicy environment which is still lagging behind the structural change occurringin Indias consumption and production baskets.

Do keep writing to us at [email protected]

Happy Reading!

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Hydroponics: An Introduction .................... 6By Mohasen Doha and Colleagues

Eco City Ideas: Hydroponics, The UrbanFace of Agriculture..................................... 12By Vikram Adige

A Breakthrough in Hydroponics ................. 15By Surinder Sud

Organic farming in India: Relevance,Problems and Constraints .......................... 16By Dr. S. Narayana

Indias Role in World Agriculture ................ 23

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Editorial Board

Published byAgricultural Finance

Corporation Ltd.Dhanraj Mahal, ChhatrapatiShivaji Maharaj Marg,Mumbai 400 001

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Editor-in-ChiefShri A.K. Garg

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The Paradox and Challenges ofIndian Agriculture ...................................... 27By Joachim von Braun, Ashok Gulati, Peter Hazell,Mark W. Rosegrant and Marie Ruel

Commercialisation of Microfinancein India ...................................................... 34By M.S. Sriram

Winning Technique .................................... 39By Ashok Jainani

Agri News.................................................. 40

6Financing Agriculture

ISSUE FOCUS

Hydroponics is a method ofgrowing plants without soil. Innature, the soil provides

nutrients and is a means of physicalsupport for the plant. In hydroponics, soilis replaced by inert media such as perlite,vermiculite, horticultural rockwool, sand,or fired clay pebbles to which thenecessary elements for growth are addedin the form of a nutrient solution. Byincorporating a study of hydroponics intothe school curricula, students at all levelswill be able to appreciate the differentways in which plant life can be sustained.For many centuries, people haveendeavored to increase yields andimprove crop quality against nature.sinconsistency. The basic techniques ofhydroponics have been known for sometime, but it is only since the beginning ofthis century that the techniques havebeen refined to the point where theycould be applied commercially. Dr.Gericke of the University of California atLos Angeles successfully grew tomatoesin water culture before 1936, arousing

great interest in hydroponics as analternative method of horticulture. Thecommercial and hobby production ofvegetables and cut flowershydroponically is becoming more popular.If optimum growing conditions andnutritional requirements are applied,combined with sound horticulturalmanagement, hydroponics can offer analternative means of food production.Good quality, high yielding crops may beproduced in areas where climate orlocation may previously have hamperedthe production of crops by soil cultivation.Many students and teachers like usinghydroponics as a learning tool because itis a .hands on. method. It brings thedisciplines of chemistry, biology, andphysics together.

Objectives

To be able to set up one or more ofthe various hydroponic systems.

To be able to maintain the hydroponicsystem(s).

To be aware of the advantages and

disadvantages of the varioushydroponic systems.

To be aware of the different mediaused in hydroponics.

To understand nutrient elements andsolution pH.

Hydroponic Fundamentals

The word hydroponics. was coined in theUSA, in the early 1930s, when ProfessorGericke at U.C.L.A. coined the name todescribe the growing of plants with theirroots suspended in water containingmineral nutrients. The name comes fromtwo Greek words: hydro (water) andponos (to work, labor), and literallymeans water works. The definition ofhydroponics has gradually beenbroadened. Today it is used to describeall ways of growing plants without soil.It is synonymous with the term soillessculture and both terms are restricted tothe growing of plants without soil. Allsystems except hydroculture can be usedfor the commercial production ofvegetables and cut flowers. Commercial

By Mohasen Doha and Colleagues*

Hydroponics:An Introduction

Hydroponics:An Introduction


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hydroponics is a relatively recentdevelopment. However, the art ofhydroponics is believed to date back tothe Aztec Indians of ancient America,who grew their plants on rafts on shallowlakes where cultivation in soil was notpossible. These rafts were covered withsoil removed from the lake bed, and theplant roots grew through the soil downinto the water of the lake. A few of thesefloating gardens. still exist near MexicoCity. Professor D. Hoagland of U.C.Berkeley verified many of the Gerickeexperiments during the 1930s.Commercial hydroponics was really firststarted in 1936, when gravel culture wasused. Robert and Alice Withrow atPurdue University developed theNutriculture*. system of gravel culture in1940, which was used by the U.S. Armywell into the 1950s to supply troops inJapan and Korea.

Activities

There are many ways in whichhydroponic systems may be established.The manner chosen largely depends uponthe availability of space, the preferredmedia, financial concerns and the typeof crops desired. The hydroponic systemswhich follow may be classified undereight headings:

Surface Watering Technique Subirrigation Wick System Grow Bag Technique Soak and Drain Rockwool Technique Drip Feed Technique Nutrient Film Technique

Each system may be modified orexpanded to suit individual requirementswhile, similarly, the medium used maybe varied from that suggested here.There is abundant scope for imaginationand initiative in the design of aninstallation which would suit yourparticular needs.

Advantages

A number of advantages can be identifiedwhen growing crops hydroponically,compared with growing plants in soil.

The labor input is less than if soil isused, once the unit is established.

The work involved is generally light.Heavy manual operations associatedwith normal cultivation practice, suchas digging weeding, and ploughing,are eliminated.

No crop rotation is necessary as thegrowing medium can be reusedcontinually, or replaced.

Because plants do not have tocompete for moisture and nutrients,production in hydroponics comparedwith soil cultivation in a comparablearea may be increased approximatelytwo times.

Plants are usually uniform in growthand maturity.

There is minimum wastage of water.

There are virtually no weeds and nogophers!

As the nutrient requirement of plantsvaries according to the seasons,hydroponic gardening can provideplants with optimum quantities of thenecessary nutrients during thedifferent seasons. This will enablemaximum growth to be achieved.

The need for dangerous pesticides islargely eliminated if the plants aregrown in a controlled environment.Root diseases are controlled to agreater extent.

Disabled people are not excludedfrom participating in hydroponics, asbenches or units may be adapted totheir requirements.

Hydroponic Culture Types

At the 4th International Congress ofSoilless Culture in 1976, the varioussystems of hydroponics were classifiedand defined as follows.

Water Culture: Roots of plantssubmerged in the nutrient solution withlittle or no growing media. The NutrientFilm Technique (NFT) is an example.

Sand Culture: Roots of plants growingin a solid aggregate of particles with adiameter less than 3 mm. Fine perlite,plastic beads, and washed river sand haveall been used. Beach sand is too fine,giving inadequate aeration of the roots.

Gravel Culture: Roots of plants growingin a solid aggregate composed of particleswith a diameter more than 3 mm. Gravel,basalt, scoria, pumice, plastic, and otherinorganic material. Used in the 1970s insubirrigation systems in the USA. The sizeof most gravel used is between 5 to 10mm in diameter, with rounded edgespreferred.

Vermiculaponics: Roots of plantsgrowing in vermiculite, or a mixture of


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vermiculite with any other organicmaterial. This works very well for smallexperimental systems.

Horticultural Rockwool Culture: Rootsof plants growing in horticulturalrockwool or any similar material. Thismethod really came into it.s own duringthe 1980s, after research in the 1970s.

Hydroculture: All systems or methodsof hydroponics, if used especially forgrowing ornamentals in the home oroffice. It usually means using fired claypebbles in a passive system with nopump. Excellent for slow growing houseplants like ferns or orchids.

Aeroponics: This system uses a spray ofnutrient solution that is aimed at theplants roots, which are supported in achamber filled with moist air. Very highgrowth rates have been observed.

Wick System

In the wick system, the roots aremoistened by the nutrient solutionpassing up a wick made of nylon, rayonor polyester, or by using a lamp wick.Stand a pot, supported above thenutrient solution, in a tray. Soak the wickthoroughly before passing it through thedrainage hole into the nutrient solution,leaving 10 cm of wick in the pot. Unravelthe upper end of the wick to give betterdistribution of the nutrient solutionthroughout the medium. The growingmedium must also be thoroughly soakedto enable the wick to draw up thenutrient solution. Vermiculite, perlite, orfired clay pebbles are the most

commonly used growing media for wicksystems. Rockwool could also be used,but it may hold too much water formany plants.

Hydroculture is a special type of wicksystem that uses the high capillary actionof fired clay pebbles. No actual wick isrequired. The inner pot looks like a coarsenet type of structure. It holds the claypebbles and the plant itself. This culturepot or net pot fits inside anothercontainer which is water tight. Either afloat type water level indicator, or a seethrough window in the outer pot lets thegardener visually check the water level.

Grow Bag Technique

Using grow bags is a simple and cheapway to grow plants hydroponically. Fill alarge clean opaque polyethylene bag withthe growing medium of your choice andseal the open end with freezer bag tiesor insulation tape. Lie the grow bag on afirm surface. To ensure good hygiene,place polyethylene sheeting underneaththe bag. Cut 3 or 4 drainage slits aroundthe outside edges of the bag,approximately 10 mm from the base toallow drainage of excess nutrientsolution. Cut holes in the top of the growbag to allow plants to be inserted. Fourto six plants per bag is usually sufficient,but the number will vary according to thetype of plant grown or the size of thebag. Thoroughly soak the medium in thegrow bag with dilute nutrient solution,before inserting the plants. Plants shouldreceive nutrient when required. Use aplastic watering can or drippers to apply

the nutrient solution. The drippers couldbe automated by using a timer and apump.

Subirrigation

This system is based on the capillaryaction of the growing medium whichcarries the nutrient solution up to the rootgrowing zone. In this particular methoda pot is permanently left to sit in nutrientsolution. When river sand is used as thegrowing medium, the nutrient will riseapproximately 15 cm above the level ofthe solution. This level will differaccording to the particle size of the riversand used. Of the 15 cm of growingmedium available, only 10 cm is suitablefor root growth. The first 5 cm above thelevel of the nutrient solution is saturatedand therefore unsuitable for rootdevelopment.

Regular flooding of the nutrient solutionin the tray to the 5 cm mark will alleviatedrying out of the media. Rockwool willdraw up even more water than sand, dueto it.s very high capillary action. Rockwoolmust have a drainage area below it, sothat water has somewhere to drain.Otherwise standing water may becomeanaerobic at the root area. Fired claypebbles are an excellent media for coolerclimates.

Flood and Drain (Ebb & Flow)

A waterproof growing container is placedon a bench and sloped to an outlet towhich a hose is connected. The other endof the hose is connected to a bucket ordrum which contains the nutrient

Using grow bags isa simple and cheapway to grow plants

hydroponically. Fill alarge clean opaquepolyethylene bagwith the growingmedium of your

choice and seal theopen end with

freezer bag ties orinsulation tape


ISSUE FOCUS

solution. When the container is heldabove the level of the growing container,the nutrient solution will flow out andsoak the growing medium. When thebucket or drum is lowered, the excessnutrient solution will drain out of themedium back into the bucket. The sizeof the container should be limited toapproximately 18 liters, as any larger willmake lifting difficult for students.

The container is then topped off withwater for the next irrigation. Completelyrenew the solution every 1-2 weeks. Themedium must not be left totally floodedduring hot weather because this willcause rapid root death. It is advisable toretain a small reservoir of solution in thebottom of the container to carry plantsover a weekend or during periods of hotweather A pump and timer could be usedto automate this system. The normalrecommendation is to water every 2hours during daylight. The tray shouldfully drain within 30 minutes after thepump shuts off.

Rockwool Technique

Horticultural rockwool can be used as asoilless growing medium. The rockwoolreferred to is a horticultural grade ofrockwool capable of absorbing water andmade to a specific density. Beware ofusing standard thermal rockwoolproducts as these are water repellent, andmay have toxic fire retardants. The

rockwool hydroponic system dependsupon using:

Rockwool propagation blocks, orsmall cubes

Rockwool 75 mm wrapped cubes (or100 mm)

900 mm x 300 mm x 75 mmrockwool growing slabs

The advantage of using rockwool as agrowing medium lies in the fact that theplants at no point need to be removedfrom the rockwool. Plants are propagatedin rockwool propagation blocks, whichare then transplanted into rockwool 75mm wrapped cubes, which are thendirectly placed onto the rockwoolgrowing slab when plants are at anadvanced stage. Most plants may begrown to maturity in the wrapped cubes.The large slabs are only needed for cropswith a very long life like tomatoes orcucumbers. Both of those crops couldkeep bearing for six to nine months.

Propagation

Rockwool propagation blocks are usedwith the uncut surface uppermost. Cutsin the block help prevent roots fromgrowing from one block to another andalso make the blocks easier to separateat the end of the propagation period.Blocks are placed in seed trays or placeddirectly onto propagation benches linedwith polyethylene sheeting. Looking at

the underside of the propagation blockthe air gaps are readily observed.

How are seeds sown inRockwool?

A hole is made in the propagating blockinto which a seed is sown. DO NOT pushthe rockwool fibers together to cover theseed. The blocks must be completely wetbefore the seeds are sown. This can beachieved by submersing the blocks innutrient solution. Once the seeds havegerminated, water them with nutrientsolution. Plants that can be direct-seededinto cubes are cucumber, zucchini,legumes, tomato and lettuce. Keep therockwool moist, but not soggy. Thevertically-arranged fibers in rockwoolallow most softwood and semi-hardwoodcuttings to be inserted directly into wetpropagation blocks. Bottom heating, ifavailable, should be used. Plants suitablefor cuttings are carnations,chrysanthemums, begonias, indoorplants, roses and fuchsias. Mistpropagation can be used, butwaterlogging and plant diseases candevelop from frequent misting. Toimprove drainage, stand blocks in seedtrays or on a coarse aggregate. Increasedhumidity can be achieved by using a smallpolyethylene tent which will aid theestablishment of plants.

Growing On

Tear away the rockwool propagationblocks with the struck cuttings orseedlings. Separation of blocks is easierwhen wet. Individual blocks can beremoved easily. Air gaps reduce rootinginto adjacent blocks. When roots arevisible on the outside of the propagationblock they are ready to transplant intothe larger blocks. The propagation blocksare then directly placed into rockwool (75mm or 100 mm) cubes. The propagationblocks fit neatly into the holes in thelarger cubes.

Safety Note: If the grower suffers fromskin allergies it is advisable to cover thearms and wear leather gloves whileworking with dry horticultural rockwool.Once the rockwool has been moistenedit has no irritating effects on skin.

Rockwool Slabs for cropsthat grow over 6 months

Soak the rockwool-wrapped cubes (75


mm or 100 mm) with nutrient solutionbefore inserting the propagation blocks.Again, place the cubes on a well-drainedsurface. The cubes must be watered dailywith nutrient solution. When the plantsin the rockwool cubes are at an advancedstage, the cubes containing plants can beplaced directly onto the rockwoolgrowing slabs. The roots should grow intothe slab from the rockwool-wrappedcube in 3-7 days. It is necessary toprepare the rockwool growing slabs priorto placing the cubes on the slabs. Arrangethe 750 mm x 300 mm x 100 mmrockwool growing slabs in bedsapproximately 300 mm apart. A drainagechannel will be required to remove anyexcess solution, so the slabs must be tiltedslightly toward the drainage channel. Laysheets of black polyethylene on theground, along which the growing slabsare laid in rows. Then cut 3-4 tiny slitson each side of the growing slabs,approximately 10 mm from the base toallow for the drainage of excess solution.Thoroughly soak the growing slabs withnutrient solution before the wrappedcubes are placed on the slabs. Drippersare used to provide each plant withnutrient solution. It is necessary to haveappropriate timing mechanisms in orderto irrigate for the required time. Seasonalvariation and the different needs of plantswill influence how often the system isirrigated. Irrigation must be sufficient toprevent the rockwool from dehydratingand to prevent the development of dryspots and areas of salt accumulation. Setthe dripper in the top of the 75 mmcubes. Pump the nutrient solution froma large tank using a submersible pump.Extra solution should be pumped at eachwatering, to ensure at least a 10 percentdrainage of fluid through the slab. Theextra amount ensures that nutrientbuildup doesn.t happen too quickly.

Growing media

Many types of media and combinationsof media may be used to grow plantshydroponical ly. Choice is largelydependent upon availability, the typeof system in use and the plants to begrown.

Crushed granite: In hydroponics,screened crushed granite of approximateparticle size of 2 mm should be used. Themedium is totally inert, but has arelatively low water retention capacity.

The medium can be reused over a periodof time.

Sand: Coarse washed river sand is amixture of fine and coarse particles. Sandin the 0.5 mm to 2.5 mm range is mostsuitable, allowing drainage and goodaeration. Between 20-25 percent byvolume of peat moss may be added toimprove moisture retention. Builders sandmay be used as long as it does not containlarge quantities of fine broken shell whichwill increase the alkalinity of the medium.

Scoria: Scoria is a relatively porousvolcanic rock which is very good as amedium. Generally a mixture of fine andcoarse scoria is used, being heavy enoughto support plants yet having goodaeration. It is sold as lava rock in manyhardware stores.

Perlite: Perlite is a volcanic rock, whichwhen heated in excess of 1000 C,expands into lightweight particles. Inhydroponics approximately 3 mm particlesize should be used. The medium is inertand sterile and is used as a lightweightsupport medium. It does not have a highcapacity for water retention and has nonutrient holding capacity. Perlite can beused on its own or with vermiculite,depending upon specific plant needs. Themedium must be pre-wetted before use.Avoid inhalation of the dust.

Vermiculite: An expanded mica,vermiculite is light and has a very highcapacity for water retention. Because ofits flaky structure, vermiculite eventuallybreaks down and requires replacementevery 2-4 years. Works well in warmclimates.

Mixes: A 50/50 mix of perlite/vermiculite makes an ideal growingmedium. It is advisable not to mix sand,scoria or crushed granite with Perlite orvermiculite, as they will separate whenwet due to differences in densities.

Rockwool: Horticultural rockwoolconsists of a mat of long, fine fibers, spunfrom molten natural rock. It is inorganicand inert, very light when dry, sterile, isnot biodegradable and has a very highwater and air holding capacity. It is soldin Australia under the trade name ofGrowool. In Canada, the United Statesand Europe the product is marketedunder the brand name of GrodanRockwool.

Scoria is arelatively porous

volcanic rockwhich is very

good as amedium.

Generally amixture of fine

and coarse scoriais used, being

heavy enough tosupport plants

yet having goodaeration. It is

sold as lava rockin many

hardware stores

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Fired Clay Pebbles: This is a highperformance growing media. The claypebbles are either formed from clay andfired, or milled form shale rock, andthen fired. In either case the end resultis a porous interior surrounded by a lessporous hard shell. The less porous hardshell prevents the media fromdegrading in the presence of water. Thecapillary action is very high. Three sizesare available.

Coconut Fiber Coir: Not used much inthe United States, but due to the low costit is used in tropical countries. Notrecommended for recirculating systemsdue to leaching of organics into the water.

Shredded Fir Bark (or coarse firsawdust): Again, low in cost but notrecommended for recirculating systemsdue to the leaching of large amounts oftannic acid into the water. Canadiantomato growers used to use non-recirculating drip systems with coarsesawdust with good results. The sawdustmust be replaced each season. Orchidgrowers use fir bark, as it simulates thenatural way they grow on trees, anddoesn't hold excess water.

Care and maintenance ofhydroponic systems

Recirculating Systems: As the level inthe supply tank falls in hydroponicsystems which recirculate the nutrientsolution, it should be topped off to itsoriginal level with water. This can beachieved manually, or automatically bythe use of a float valve placed in thenutrient tank. Do not top off the tankwith nutrient solution, otherwise you willhave no idea of its strength. After a while,the nutrient solution will need replacing.As a rough guide this should be doneabout every 1-2 weeks in summer, everytwo weeks in spring and autumn, and inwinter every four weeks. As a moreaccurate method of determining whento replace the nutrient solution, aconductivity meter can be used. Thisinstrument measures the electricalconductivity of freshly prepared nutrientsolution, so when the conductivity fallsto two-thirds of the original reading, thesolution needs to be replaced or toppedoff with nutrients.

Non-Recirculating Systems: In systemswhere the nutrient solution is notrecovered and reused, the supply tank is

simply topped off with nutrient solutionat any convenient time. Make sure thatthe supply tank is big enough to holdsufficient nutrient solution to last anumber of days. Try to keep wastage toa minimum by learning how much isrequired under various conditions andefficiently applying the correct amount.

Moisture Content: The nutrient solutionshould be applied at a rate to fully wetthe growing medium and cause somedrainage. Do not keep the growingmedium flooded with solution as this willforce the exclusion of air and havedetrimental effects.

Flushing: Over a long period of time,deposition of nutrient salts in the growingmedium occurs, which may cause animbalance in the nutrient supply. Every1-4 weeks flush the whole system outwith plain water.

High Temperature: If the temperaturebecomes too hot in summer then someprotection will be needed. The plants

may need some shelter such as shadecloth if grown outdoors. If grown insidea greenhouse, shade cloth or theapplication of whitewash may beneeded. In greenhouses, good airmovement is essential and will assistgrowth and reduce the incidence offungal diseases on the foliage. Completeprotection from low temperatures canonly be achieved with a heated andregulated greenhouse. Very littleprotection can be given to plants grownin the open. Covering plants with aplastic sheet can protect against lightfrosts, and advance their growth slightly.

Containers: When building anyhydroponic systems, use inert materialslike plastic or fiberglass. Some materialscorrode and cause a nutrient imbalance.For example, if galvanized iron is used,zinc toxicity in plants will occur.

In greenhouses, good air movement isessential and will assist growth and reduce the

incidence of fungal diseases on the foliage.Complete protection from low temperatures

can only be achieved with a heated andregulated greenhouse

*The authors are teachers at the HydropincsSchool, Mussorie

ISSUE FOCUS


SPOTLIGHT

Hunger and water scarcity are buttwo sides of the same coin, bothin urban India as well as in

farming communities depleting theirreserves of arable land. We desperatelyneed for traditional practices of soil-basedagriculture to be complemented by moreproductive and ecologically-sustainableforms of modern agriculture. Thesemodern practices need to be cognizantof our modern day challenges of de-forestation, overly complex distributionof perishables, overuse of water forirrigation, excessive use of transportationfuels, and the rising menace of food priceinflation.

Hydroponics, a technology for soil-lessfarming of fresh vegetables, herbs, fruitsand flowers in a specially formulatednutrient-mix substrate, is now ripe foruse in back-yard, roof-top, greenhouse,and commercial farming. The practicehas been around for a number ofdecades, but recent innovations haveallowed this technology to grab thediscerning eye of green-techentrepreneurs and venture capitalists.The value proposition is abundantlyclear, especially in land and soil deprivedurban areas. It is a mode of agriculturethat does not need soil and hence canbe practiced just about anywhere with

the right tools, that needs 90 percentless water than soil irrigation, that cangrow in-demand non-native produce,that can grow them faster withsignificantly higher yields and thereforerevenues, that can be productive on ayear-round basis, that is less prone tosoil borne diseases and micronutrientdeficiencies, that needs less growingarea per unit of organic output, andfinally, that if practiced well enhancesthe flavor and nutritional content offood. Much like in the renewable arena,hydroponics is a form of agriculture thatenables distributed production, wherefarmer/producer and consumer are

By Vikram Adige*

Eco City Ideas:Eco City Ideas:Eco City Ideas:Eco City Ideas:Eco City Ideas:Hydroponics, The Urban Face of Agriculture


SPOTLIGHT

brought closer to one another whileeliminating wastage.

So the key feasibility questions remain:What early successes have proven thesolution? How costly and available arethe hydroponics options? Whichhydroponics business models may beattractive in places like India?

Successes

There are diverse examples ofhydroponics projects across the globe,with varying levels of innovation, scaleand success. Relevant to hydroponics tourban locales, Changi General Hospitalin Singapore uses rooftop farming to nowmeet most of its fresh food needs.Gotham Greens prides itself as NewYorks first commercial rooftop closedloop hydroponics operation, in whichplants are being grown directly innutrient-enriched water that is carefullycleaned and recycled back into thesystem, and solar-powered pumps arefeeding nutrient-enriched rainwater to anacre of greenhouse space. ProMedicaHealth System network of clinics has usedthe roof of a hospital in Toledo, OH, togrow using hydroponics more than 200pounds of vegetables and then servethem to patients and a nearby foodshelter. This project led to the setup ofeight more vertical gardens throughout

underserved areas of Toledo. The Womanof Hope Project in Hyderabad, at theCenter for Promotion of SimplifiedHydroponics, shows different ways ofsetting up hydroponics for generatinglivelihoods for women. Atul Kalaskar useshydroponics to grow strawberries, andbelieves that as small and marginalfarmers become more competitive bymoving up the chain of activities such asdrip-irrigation, poly-houses andcooperatives, they will eventually aspireto going soil-less in hydroponics. The PetBharo (meaning fill your stomach)project in India, affiliated with theInstitute of Simplified Hydroponics,provides training, consulting services,agricultural inputs and testing services forsetting up simplified hydroponics as wellas commercial hydroponics.

Some of the more capital and technologyintensive projects are AeroFarms, whichis building hydroponics farms incontainers stacked on top of each otherin warehouses and old buildings, lit byLED lamps that also provide pest controlwhen set to emit certain wavelengths.Cityscape Farms in San Francisco isdeveloping rooftop organic greenhousesthat use hydroponics along withaquaculture, in which the nutrient mixfor the hydroponics is organicallyfertilized with fish waste produced from

tilapia fish raised on-site. The water isthen cleaned and recycled back into thefish tanks to complete the loop. One ofthe most technology-intensivehydroponics projects, and one that wasvoted one of Time Magazines Top 50Best Innovations of 2009, is ValcentsVertical Farming Technology. HisVertiCrop innovation grows non-GMplants in rotating rows one on top ofanother, feeding them precise amountsof light and nutrients while using thevertical stacking to use far less water thanconventional farming. And, by growingupward instead of outward, he canexpand food production without usingmore land. He claims to be able toincrease production volume for fieldcrops up to 20 times over, while using aslittle as 5 percent of the normal watersupply. One final examples of very largescale operation is Eurofreshs 274-acrehydroponic greenhouse in southeasternArizona, where more than 200 millionpounds of tomatoes were producedin 2007.

Cost

With regard to cost, here are some initialresources for gathering information.Vincent Dessberg, a rooftop hydroponicfarmer in Sarasota, FL, growing fruits &vegetables, says he spent $25,000 to set

Gotham Greens pridesitself as New Yorks first

commercial rooftopclosed loop

hydroponics operation,in which plants are

being grown directly innutrient-enriched

water that is carefullycleaned and recycledback into the system,

and solar-poweredpumps are feedingnutrient-enriched

rainwater to an acre ofgreenhouse space


SPOTLIGHT

up his facility, including the cost of his6,000 plants growing vertically in 180hydroponic planters. One could visualizehis capex and opex needing to be muchhigher for a commercial setup thatneeded to pump water throughsophisticated sensors that automaticallyadjust nutrient and acidity levels in thewater. Dinesh Rao, a relatively newhydroponics practitioner in India whocarefully manages his water and nutrientmix, says a capex of ~Rupees 100,000-150,000 ($2,200-3,300) was required toset up a 1000-plant capacity, giving 10tons of annual tomato output. The costof a high-end hydroponics greenhouse,using state of the art technologies forlighting, water, nutrients and so on wouldprobably need to be offset by sales intopremium organic retail channels such asa Whole Foods, and export markets.Lower-end simplified hydroponics farms,which is the focus of my study here, isusually based on a static solution culture(compared to a continuous flow solutionculture, or an aeroponics culture) or asolid-medium culture, and a powder(rather than liquid) nutrient mixture, andwould also get the job done though atlower yield. Low-cost greenhouses andpolyhouses would be key to designing asustainable hydroponics model forgrowing affordably priced foods. Anotherconvenient benefit of running such as

project in tropical India, wheregreenhouse heating and humidity is notas much of an issue, is that less energy isrequired for the operation. In general, keycost drivers would be availability ofaffordable nutrient mix, access to trainingand quality analysis, and technology-levelthat is matched to the buyersrequirements.

Models

Low-cost hydroponics greenhouses(along with grading and packing area),built around distributed production withclose proximity to consumers, can be astabilizing factor in food production andretail. The model would need to capitalizeon the predictability of producing year-round nutrient-rich vegetables, extractcost savings from increased yields, andadequately market the health benefits ofpesticide-free produce. But this wouldmake sense only if an affordable andstable price point is achieved for theproduce. In urban India, one businessmodel possibility would be to build ashowcase hydroponics greenhouse onthe rented terrace of a chain of hospitals,much like in some of the examplesprovided above, prove the model for aselect range of fruit-bearing and leafycrops required by the hospital and thenearby community, and then franchiseout the model across the rest of their

network. The initial phase of this projectwould need to involve R&D intotechnology and the nutrient mixrequirements for different families ofcrop. Over time, the business could thenbe expanded to co-locate (Im using thisterm loosely) greenhouses with farmersmarkets and restaurants that need freshproduce, animal farms that require foddercrops, and specialty retailers that needflower/ornamental crops andcondiments. Another more scale-orientedmodel would be to develop a high-techvertical farm, expressly to supply large-format quality-sensitive food retailerssuch as Reliance Fresh. All of thesemodels could provide employment tolow-skilled labor, and stay true to theirmission of local consumption by notentering into the logistics heavy exportmarket.

On the related topic of quality, there issomething to consider on the organicversus inorganic hydroponics front.With food inflation continuing to rise, onecan imagine shoppers who spend moreneeding more alternatives to expensive,imported and organic vegetables. Theymay gladly gravitate towards the nextbest thing fresh vegetables grownhydroponically, and locally by farmersright in their community. Note:hydroponic farms can use both organicand inorganic (i.e. artificially-made, themore popular) nutrient mixtures, and itis unclear as to whether the former optionprovides adequate yields and otherbenefits. I am therefore reluctant tosuggest that going the more expensiveorganic-fertilizer route is worth it foraffordable hydroponics.

Conclusion

In closing, did you know that more thanhalf of the worlds plants already growhydroponically? Im referring to theoceans, where there is no soil and plantsdraw their nutrients directly from the seawater around them. It is worthappreciating that hydroponics is simplytaking a cue from nature and applying itto our life on land. It is now up to ourinnovators and financiers to make thiscommercially viable on a grand scale.

*The author is novelist and has writtenvarious books on the agriculture systemsof India


PERSPECTIVE

Although it is still an evolvingscience, hydroponic agriculture(growing plants in water solution

rather than soil) is spreading fast the worldover. The nutritional requirement of theplants in this system of soilless farming ismet by the nutrient mixtures, calledhydroponics fertiliser mixtures, added tothe water in which the plant roots are keptsubmerged. These mixtures are made ofchemical plant nutrients.

A breakthrough has now been achievedby an Indian hydroponics hobbyist increating a purely organic nutrient mixturefor growing plants in water. This whollychemical-free plant growth solution hasbeen tested successfully for growingseveral plants, including commonvegetables like tomato and arbi and somehigh value medicinal plants like Brahmi,Arjun and Cineraria. Indeed, a good dealof research is underway in this system ofsoilless farming in the US and Europe butnot much headway has been madeanywhere in organic hydroponics.

Of course, some hydroponics enthusiastsabroad have been experimenting withvarious kinds of organic manures andmixtures of plants, but successful andcommercially viable organic hydroponicsmodels are still not available. In fact, evenglobally accepted principles for certifyingorganic hydroponics products are also notyet available. The success in this venturein India is claimed by a Delhi-based familyheaded by Vidya Shankar Singh. Hisdaughter, Shweta Singh, a DelhiUniversity botany student, has beenassisting him in discovering and furtherimproving the biofertiliser mixture forgrowing plants in ordinary water.Though we normally call this biofertiliseran ayurvedic medicine for raising plants,we have also given it the name ShwetaAnand Growth Solution, says Singh. Itcosts only about Rs 30 to Rs 40 forproducing one litre of this concoction,though it takes a long time of six to eightmonths to process it. This mixture, addedto the water at the rate of just onemillilitre per litre per week, takes care ofthe complete nutritional requirement of

the plants. Singh has also evolvedanother wholly plants-based mixture forspraying on the plants to boost theirgrowth. He has named it Shweta Protonicmixture. He, however, is keeping theformula for making these mixtures asecret. Nor does he want to disclose theplants whose leaves are used in preparingthem. I will work on it for a couple ofyears more before thinking of launchingcommercial production of this bio-fertiliser for hydroponics.

However, if some governmentorganisation, such as the Indian Councilof Agricultural Research (ICAR), comesforward, I am willing to cooperate withit in promoting organic hydroponics inIndia, he says. The hydroponics gardenthat Singh is maintaining on the roof ofhis house near backside entrance of theNizamudin railway station has severalspecies of flowering plants, vegetablesand medicinal plants. He believes thatnearly 200 commercially important plantscan be grown by hydroponics technique.But, surely, this technique cannot beapplied to all plants. His attempts to growhorticultural plants like lemon and grapeshave not been successful. In India, thehydroponics system of farming was firstattempted by an English scientist W JShalto Duglas in a laboratory in Kligpongarea of West Bengal in 1946. After his

return to England in 1948, the scientificresearch work on it virtually stopped.Globally, however, the chemical fertilisermixture-based hydroponics is in voguein several countries, especially in areaswhere either the climatic conditions orthe poor soil quality prohibit normal cropcultivation. In British Columbia, the bulkof the greenhouse industry is now usinghydroponics technology.

Various models of the hydroponics are inuse for indoor as well as outdoorgardening and farming. Specialisedcultivation techniques have also beenevolved for growing vegetables insubmarines to feed the crew members.It may soon also find its use in spacecrafts.The US space agency is reported to havebegun experimenting growing plants inspace. In India, too, several tracts ofwastelands having poor quality soil butplenty of water can be brought underhydroponics. All that will be needed is tocreate an impervious surface at thebottom and bunds to hold water. Thetechnology used for polythene lining ofcanals can come in handy for creatinglarge hydroponic farms to grow foodcrops, vegetables and other plants.

A Breakthrough in HydroponicsBy Surinder Sud*

*The writer is a renouned journalist. Thearticle is an excerpt that was published inBusiness Standard


COVER STORY

Sustainable development has caughtthe imagination and action all overthe world for more than a decade.

Sustainable agriculture is necessary toattain the goal of sustainabledevelopment. According to the Food andAgriculture Organization (FAO),sustainable agriculture is the successfulmanagement of resources for agricultureto satisfy changing human needs whilemaintaining or enhancing the quality ofenvironment and conserving naturalresources. All definitions of sustainableagriculture lay great emphasis onmaintaining an agriculture growth rate,which can meet the demand for food ofall living things without draining thebasic resources.

Organic farming is one of the severalapproaches found to meet theobjectives of sustainable agriculture.Many techniques used in organic

farming like inter-cropping, mulchingand integration of crops and livestockare not alien to various agriculturesystems including the tradit ionalagriculture practiced in old countrieslike India. However, organic farming isbased on various laws and certificationprogrammes, which prohibit the use ofalmost all synthetic inputs, and healthof the soil is recognised as the centraltheme of the method.

Adverse effects of modern agriculturalpractices not only on the farm but alsoon the health of all living things and thuson the environment have been welldocumented all over the world.Application of technology, particularly interms of the use of chemical fertilizersand pesticides all around us haspersuaded people to think aloud. Theirnegative effects on the environment aremanifested through soil erosion, water

shortages, salination, soil contamination,genetic erosion, etc.

Organic farming is one of the widely usedmethods, which is thought of as the bestalternative to avoid the ill effects ofchemical farming. There are severaldefinitions of organic farming and theone given by the US Department ofAgriculture (USDA) is considered themost coherent and stringent. It is definedas a system that is designed andmaintained to produce agriculturalproducts by the use of methods andsubstances that maintain the integrity oforganic agricultural products until theyreach the consumer. This is accomplishedby using substances, to fulfill any specificfluctuation within the system so as tomaintain long term soil biological activity,ensure effective peak management,recycle wastes to return nutrients to theland, provide attentive care for farrn

Organic Farming in India:Relevance, Problems and ConstraintsBy Dr. S. Narayana*


COVER STORY

animals and handle the agriculturalproducts without the use of extraneoussynthetic additives or processing inaccordance with the act and theregulations in this part. The origin oforganic farming goes back, in its recenthistory, to 1940s. During this period, thepath breaking literature on the subjectpublished by J.I. Rodale in the UnitedStates, Lady Balfour in England and SirAlbert Howard in India contributed to thecause of organic farming.

The farming being practiced for the lastthree decades in India has increasinglybeen found non-sustainable. The systemis oriented towards high productionwithout much concern for ecology andthe very existence of man himself.

Relevance of Organic

Farming

The relevance and need for an eco-friendly alternative farming system arosefrom the ill effects of the chemicalfarming practices adopted worldwideduring the second half of the last century.The methods of farming evolved andadopted by our forefathers for centurieswere less injurious to the environment.People began to think of variousalternative farming systems based on theprotection of environment which in turnwould increase the welfare of thehumankind by various ways like clean andhealthy foods, an ecology which iscondusive to the survival of all the livingand non-living things, low use of the non-renewable energy sources, etc. Manysystems of farming came out of theefforts of many experts and laymen.However, organic farming is consideredto be the best among all of them becauseof its scientific approach and wideracceptance all over the world.

The International Scene

The negative effects of modem chemicalbased farming system were firstexperienced by those countries, whichintroduced it initially. So, naturally, it wasin those countries organic farming wasadopted in relatively large scales. Thereare very large organisations promotingthe organic farming movement inEuropean countries, America andAustralia etc. These organisations, forexample, the International Federation ofOrganic Agriculture Movements

(IFOAM) and Greenpeace have studiedthe problems of the chemical farmingmethods and compared the benefitsaccruing to the organic faming with theformer. Organic farming movementshave since spread to Asia and Africa too.

IFOAM was founded in France in 1972.It spearheads and coordinates organicfarming efforts the world over bypromoting organic agriculture as anenvironment friendly and sustainingmethod. It focuses on organic farmingby highlighting the minimum pollutionand low use of non-renewable naturalresources through this method. It hasabout 600 organisational membersspread over about 120 countriesincluding India.

IFOAM undertakes a wide range ofactivities related to organic farming suchas exchanging knowledge and thoughtsamong its members; representation ofthe movement in governmental,administrative and policy making forumsin the national and international arena;updating of production, processing andtrading standards; formulation andcoordination of research projects; andholding of international conferences andseminars. IFOAM participates in theactivities related to organic farming underthe auspices of the United Nations andkeeps active contacts with severalinternational NGOs.

The Food and Agriculture Organisation(FAO) of the United Nations providessupport to organic farming in the membercountries. It also attempts theharmonization of national organicstandards, which is absolutely essentialto increase international trade in organicproducts. The FAO has, in associationwith the World Health Organisation(WHO), evolved the Codex Alimentariusfor organic products.

Organic farming has several advantagesover the conventional one apart from theprotection of both the environment andhuman health. Improved soil fertility,better water quality, prevention of soilerosion, generation of rural employment,etc. are some of them.

Growth of Organic Farming

Organic farming has spread to about 100countries around the world (Annexure -1). An estimate in 2004 puts about anarea of 24 million hectares under oiganicfarming worldwide. Australia with its10.5 million hectares leads the countries.However, much of this area is pastoralland for grazing. Argentina with 3.19million hectares, Italy with 1.83 millionhectares and USA with 0.95 millionhectares follow suit. The importance oforganic farming is growing in manycountries. Austria and Switzerland haveabout 10 per cent of their food systemunder organic agriculture. The annualgrowth of organic farming is estimatedto be about 20 percent in USA, France,Japan and Singapore.

The Developed World

Great strides have been made in organicfarming by the western developedcountries. We very often tend to putsmall farms in harmony with the organicfarming system imagining that the largefarms are not attuned for its adoption. InUSA, there are large organic farmscoming to thousands of acres and theyraise crops using organic methodscompletely avoiding the use chemicals formanuring and controlling of pests andweeds. They implement crop rotationsand lay emphasis on the timing of culturaloperations.

Progress of Organic

Farming in India

The first conference of NGOs on organic

In USA, there arelarge organic farms

coming to thousandsof acres and theyraise crops usingorganic methods

completely avoidingthe use chemicals for

manuring andcontrolling of pests

and weeds. Theyimplement crop

rotations and layemphasis on the

timing of culturaloperations


farming in India was organized by theAssociation for Propagation of IndigenousGenetic Resources (APIGR) in October1984 at Wardha. Several other meetingson organic farming were held at differentplaces in the country towards the end of1980s. Here, mention must be made ofthe Bordi Conference in Maharashtra, thestate which was the focal point for theorganic farming movement in India. TheRajasthan College of Agriculture with thesupport of the state governmentorganized a meeting on organicagriculture in 1992. The United PlantersAssociation of South India (UPASl)organised two national level conferenceson organic farming in 1993 and 1995.ARISE (Agricultural Renewal in India fora Sustainable Environment) is a majororganization in the country engaged inthe promotion of organic farming. ARISEwas founded in 1995 at a nationalconference of organic farming held atAuroville. ARISE comprises of asupporting network of regional groupsaiming at sustainable environment byprotecting bio-diversity and promotingorganic agricultural practices. Theselect ion of Aurovi l le for theconference was apt as it housed theArabindo Ashram and the pioneeringwork under its auspices on buildingtechnology, a lternat ive energyresearch, wasteland development,afforestation and organic agriculture.

By 1980, three groups of Indians hadtaken to organic farming. The first oneconsisted of urban educated technocratsfor peripheral interest, which did not lastlong. Educated farmers consisted of thesecond group whose farming practiceswere based on scientific knowledge. Thethird group practiced organic farmingthrough trial and error. The successfulorganic farmers in India are those whohave access to sufficient natural resourceslike, water and other organic inputsmostly on their own farms. These farmsproduce crops like sugarcane, areca,cocoa, coconut, pepper and spices. Manyof them have shown that switch over toorganic farming do not affect yields andincome and more importantly,knowledge/ expertise is available forsuccessful adoption of organic farmingin the country.

The International Federation of OrganicAgriculture Movements (IFOAM)estimates that an area of about 41,000hectares in India is under organic farmingrepresenting about 0.17 percent of theworld organic acreage. It also reveals thatthe percentage of organic area to thetotal cultivated area comes to only about0.03 percent and the total number offarms comes to about 5,661. But, acomparison of our 41,000 ha to Australia(10.5 million ha), Argentina (3.19 millionha], Italy (1.83 million ha), and USA (0.95million ha) clearly indicates that organic

farming in India has to go very far evento catch up with that of the leadingnations of the world.

Non Governmental Organizations(NGOs) are spearheading organicfarming in India. A report in 2002indicates that about 14,000 tonnes oforganic products have been raised inIndia. They include tea, coffee, rice,wheat, pulses, fruits, spices andvegetables. India exports organicagricultural produces to EuropeanUnion, USA, Canada, Saudi Arabia,UAE, Japan, Singapore and Australia,among others.

The International Conference on IndianOrganic Products-Global Markets at theend of 2002 was the first to be held inIndia. IFOAM predicts that India andChina have great potential to be organicfarm produce exporters in the future. Animportant event in the history of themodern nascent organic farming in Indiawas the unveiling of the NationalProgramme for Organic Production(NPOP) on 8"^ May, 2000 and thesubsequent Accreditation andCertification Programme on P October,2001. The logo India Organic wasreleased on 26'* July 2002 to supportthe NPOP.

Progress

An important progress towards organicagriculture made by India is the increasingawareness of the ill effects of the modernfarming system, which the countryadopted about 35 years ago. The threatpoised by the conventional food productsto the human health and the damagedone to the ecology are being viewedseriously. Efforts are made to producehealthy foods and the demand. for themis increasing. The importance of themarketing of the organic products ishighlighted for the promotion of organicagriculture. Several individuals andassociations have taken to organicfarming and organic products areavailable in the large cities to a verylimited extent.

Production and Exports

The aggregate production of organicagriculture came to about 14,000 tonnesduring 2002 and the exports amountedto 11,925 tonnes.

Indian organic products are mainly

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exported to Europe (Netherlands, UnitedKingdom, Germany, Belgium, Sweden,Switzerland, France, Italy, Spain, etc.),USA, Canada, Saudi Arabia, UAE, Japan,Singapore, Australia and South Africa.

Regulations

The most important step towards organicfarming taken by the government wasto draw a regulatory framework. It is truethat the initiatives by the government tointroduce organic farming by laying downregulations came belatedly as manycountries have already done this kind ofbasic work decades ago. Theimplementation of NPOP is ensured bythe formulation of the NationalAccreditation Policy and Programme(NAPP). The regulations make itmandatory that all organic certificationbodies should be accredited by anAccreditation Agency. The internationalcertification agencies operating in Indiaeven prior to these regulations will alsohave to get accreditation under the newdispensation.

The regulations lay down the institutionalarrangements for implementing thenational programme for organicproduction. The NPOP is administered,monitored and implemented for thebenefit of farmers, processors, tradersand consumers. It envisages a three tieredorganisation under the overall guidanceof the Union Government with theDepartment of Commerce, Ministry ofCommerce and Industry as the nodalagency. Policy making and declaration ofthe standards for organic products,recognition of organic standards of othernations, efforts to get our standardsrecognized by others and coordinationwith other arms of the government forthe successful management of theorganic agriculture are the majorfunctions entrusted to the ministry.

The agencies accredited are theAgricultural and Processed Food ProductsExport Development Authority (APEDA),Coffee Board, Tea Board and the SpicesBoard. The regulations cover exports,imports and the domestic trade of theorganic products. But the governmentregulations are applicable to only theexports. So, an organic farm product canbe exported only if it is certified by acertification body accredited for thepurpose. The categories of products

covered under accreditation are organiccrop production, organic animalproduction, organic processingoperations, wild products and forestry.

A national level steering committee isfunctioning as the apex advisory body forassisting the government to promoteorganic farming in the country. This bodyconsists of representatives form theMinistries of Agriculture, Food ProcessingIndustries, Forests and Environment,Science and Technology, RuralDevelopment and Commerce.

Organic production requires certificationafter periodic inspections in order toensure that all prescribed practices arefollowed. The inspection and certificationare done by the agencies accredited tothe Accrediting Agencies dealing with thecommodity. Inspection and certificationagencies can be governmentdepartments, NGOs, trade or consumeror producer organisations. Such agenciesshould be registered bodies, withmanagements in position, declaring thepersons who shall be held responsible forany miscarriage of certification andhaving proof of adequate field staff toundertake periodic inspections. Thecontinued accreditation of such bodies isdependent upon their record of fidelityto the principles of organic production.They are authorised to award certificatesafter due satisfaction that practicesconformed to those enunciated by theAccrediting Agency in relation to the item

concerned. The charges levied by thecertifying agencies are fixed by theAccrediting Agencies.

Research and Training

A National Institute for Organic Farminghas been established to spearheadresearch in organic agriculture. Thegovernment of India constituted taskforce had also recommended theinitiation of the postgraduate levelcourses in organic farming. The MorarkaFoundation and Maharana PratapUniversity of Agriculture and Technology(MPUAT), Rajasthan have collaborated inthe design and implementation of sucha programme.

Projects and Initiatives

Several projects and initiatives topromote organic farming in the countryhave begun at the behest of individualsand institutions. The following are onlya few of such efforts the details whichcould be available.

A project aided by the World Bank toempower the rural communities in thecountry to grow organic products forexports had come up in 2002. Theprogramme aims at the improvement andpromotion of organic production ofspices, certification and export of blackpepper, white pepper, ginger, turmeric,cardamom, clove, nutmeg and herbalslike rosemary, thyme, oregano andparsley. The implementation of the

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progamme is done by the NGOs, andIdukki and Waynad districts of Kerala,Nilgiri district of Tamil Nadu andKandhamal district of Orissa are theareas selected for the purpose. Impartingtraining to both the JNTGOs and thefarmers on organic production methods,basic standards required,documentation, inspection andcertification is a major objective of theprogramme. The assistance to NGOsincludes among others computerhardware and software especially formarket promotion of their produces.

In Haryana, an enterprising farmer whobegan farming on his 16 acre land in theSonepat district in 1971 could establishan organic farm on 108 acres, raisingvegetables and other crops (Rathi, et. al.,2003). It appears that his success ismainly attributable to the efforts madeby him to market the products. NGOsfunctioning in the neighbourhood ofDelhi buy the produces like rice, wheat,pulses and vegetables from his farm at apremium price of 30 to 50 percent. Anexporting firm at a premium of 20 to 30percent buys his basmathi rice. Almost70 percent of his farm production is soldthrough advance agreements/contracts.Presently he and his friends are workingwith the resident associations in Delhi tomarket their organic products at apremium of about 25 percent.

In Rajasthan, the Morarka Foundation,

established in 1995, promotessustainable agriculture. It has about10,000 partners producing vermi-compost and the Foundation is said tobe the single largest producer of thisorganic input in Asia. It encourages theproduction of bio-pesticides and supportsprocurement of certified organicproducts. It has set up a joint venture topromote agri-biotechnology parks and amodel park of such a nature has comeup in Jaipur on 20 acres of land.

The campaign launched by theFoundation in the Sheldiawati region ofthe state in favour of organic farming hasresulted in reduction of cultivation costsand improvement in the quality of theproduces. Small and marginal farmers inthe districts of Sikar and Jhunjhunu, whohad been complaining of degradation oftheir agricultural land and decliningproductivity, were benefited. The effortsof the Foundation to popularize the useof vermi-compost in place of the chemicalfertilizer by creating awareness andimparting training to the farmers havebeen successful. The Foundation too hasa large facility to produce vermi-compost.Application of vermi-compost reducesirrigation, increases the flavour of theproducts and results in a decline in thedamage to the crops by insects. TheFoundation is presently engaged indeveloping techniques to enrich vermi-compost through micro-organisms to

make it suitable for location and cropspecific application.

Problems, Constraints

And Prospects

It is quite natural that a change in thesystem of agriculture in a country of morethan a billion people should be a wellthought out process, which requiresutmost care and caution. There may beseveral impediments on the way. Anunderstanding of these problems andprospects will go a long way in decisionmaking.

Problems and Constraints

The most important constraint felt in theprogress of organic farming is the inabilityof the government policy making levelto take a firm decision to promote organicagriculture. Unless such a clear andunambiguous direction is available interms of both financial and technicalsupports, from the Centre to thePanchayath levels, mere regulationmaking will amount to nothing. Thefollowing are found to be the majorproblem areas for the growth of organicfarming in the country:

Lack of Awareness

It is a fact that many farmers in thecountry have only vague ideas aboutorganic farming and its advantages asagainst the conventional farmingmethods. Use of bio-fertilizers and biopesticides requires awareness andwillingness on the part of the farmingcommunity. Knowledge about theavailability and usefulness ofsupplementary nutrients to enrich the soilis also vital to increase productivity.

Farmers lack knowledge of compostmaking using the modern techniques andalso its application. The maximum theydo is making a pit and fill it with smallquantities of wastes. Often the pit isflooded with rainwater and result is thetop of the compost remains undercomposted the bottom becomes like ahard cake. Proper training to the farmerswill be necessary to make vermi-composton the modern lines.

Attention on the application of composts/organic manure is also lacking. Theorganic matter is spread during themonths when the right moisture level isabsent on the soil. The whole manure

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turns into wastes in the process. Therequired operation is of course labourintensive and costly, but it is necessaryto obtain the desired results.

Output Marketing Problems

It is found that before the beginning ofthe cultivation of organic crops, theirmarketability and that too at a premiumover the conventional produce has to beassured. Inability to obtain a premiumprice, at least during the period requiredto achieve the productivity levels of theconventional crop will be a setback. It wasfound that the farmers of organic wheatin Rajasthan got lower prices than thoseof the conventional wheat. The cost ofmarketing of both types of products wasalso same and the buyers of wheat werenot prepared to pay higher prices to theorganic variety (Rao, 2003).

Shortage of Bio-mass

Many experts and well informed farmersare not sure whether all the nutrients withthe required quantities can be madeavailable by the organic materials. Evenif this problem can be surmounted, theyare of the view that the available organicmatter is not simply enough to meet therequirements.

The crop residues useful to preparevermi-compost are removed after harvestfrom the farms.and they are used asfodder and fuel. Even if some are left outon the farms termites, etc destroy them.

Experiments have shown that the cropresidues ploughed back into soil willincrease productivity and a betteralternative is conversion into compost.

The small and marginal cultivators havedifficulties in getting the organic manurescompared to the chemical fertilizers,which can be bought easily, of course ifthey have the financial ability. But theyhave to either produce the organicmanures by utilizing the bio-mass theyhave or they have to be collected fromthe locality with a minimum effort andcost. Increasing pressure of populationand the disappearance of the commonlands including the wastes andgovernment lands make the task difficult.

Inadequate SupportingInfrastructure

In spite of the adoption of the NPOPduring 2000, the state governments areyet to formulate policies and a crediblemechanism to implement them. Thereare only four agencies for accreditationand their expertise is limited to fruits andvegetables, tea, coffee and spices. Thecertiiying agencies are inadequate, therecognized green markets are non-existent, the trade channels are yet tobe formed and the infrastructure facilitiesfor verification leading to certification ofthe farms are inadequate.

High Input Costs

The small and marginal farmers in India

have been practicing a sort of organicfarming in the form of the traditionalfarming system. They use local or ownfarm renewable resources and carry onthe agricultural practices in anecologically friendly environment.However, now the costs of the organicinputs are higher than those ofindustrially produced chemical fertilizersand pesticides including other inputs usedin the conventional farming system.

The groundnut cake, neem seed andcake, vermi-compost, silt, cow dung,other manures, etc. applied as organicmanure are increasingly becoming costlymaking them unaffordable to the smallcultivators.

Marketing Problems of OrganicInputs

Bio-fertilizers and bio-pesticides are yetto become popular in the country. Thereis a lack of marketing and distributionnetwork for them because the retailersare not interested to deal in theseproducts, as the demand is low. Theerratic supplies and the low level ofawareness of the cultivators also add tothe problem. Higher margins of profit forchemical fertilizers and pesticides forretailing, heavy advertisement campaignsby the manufacturers and dealers areother major problems affecting themarkets for organic inputs in India.

Absence of an AppropriateAgriculture Policy

Promotion of organic agriculture both forexport and domestic consumption, therequirements of food security for millionsof the poor, national self-sufficiency infood production, product and inputsupplies, etc. are vital issues which willhave to be dealt with in an appropriateagriculture policy of India. These areserious issues the solution for which hardand consistent efforts along with anational consensus will be essential to goforward. Formulation of an appropriateagriculture policy taking care of thesecomplexities is essential to promoteorganic agriculture in a big way.

Lack of Financial Support

The developing countries like India haveto design a plethora of national andregional standards in attune with thoseof the developed countries. The adoption

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and maintenance of such a regulatoryframework and its implementation willbe costly.

The cost of certification, a majorcomponent of which is the periodicalinspections carried out by the certifyingagencies, which have freedom to fix thetimings, type and number of suchinspections appears to be burdensome forthe small and marginal farmers. Ofcourse, the fees charged by theinternational agencies working in Indiabefore the NPOP were prohibitive andthat was a reason for the weak responseto organic agriculture even among thelarge farms in the country. No financialsupport as being provided in advancedcountries like Germany is available inIndia. Supports for the marketing of theorganic products are also not forthcomingneither from the State nor from the Uniongovernments. Even the financialassistance extended to the conventionalfarming methods are absent for thepromotion of organic farming.

Low Yields

In many cases the farmers experiencesome loss in yields on discardingsynthetic inputs on conversion of theirfarming method from conventional toorganic. Restoration of full biologicalactivity in terms of growth of beneficialinsect populations, nitrogen fixationfrom legumes, pest suppression and

fertility problems will take some timeand the reduction in the yield rates isthe result in the interregnum. It mayalso be possible that it will take yearsto make organic production possible onthe farm.

Small and marginal farmers cannot takethe risk of low jaelds for the initial 2-3years on the conversion to organicfarming. There are no schemes tocompensate them during the gestationperiod. The price premiums on theorganic products will not be much of help,as they will disappear once significantquantities of organic farm products aremade available.

Prospects

Indian agriculture should be able not onlyto maintain but also must strive toincrease the production of foodgrains. Itappears that given the availability oforganic infrastructure, minimum effortsfor conversion due to the low use ofchemical farming methods and the limitof the public investment, organic farmingcan be progressively introduced. Thepotential areas and crops, which fulfill theabove constraints, could be explored andbrought under organic agriculture. Therainfed, tribal, north-east and hilly regionsof India where the traditional farming ismore or less practiced could beconsidered (Veeresh, 2003). Table - 11gives the details of fertilizer consumption

in the north-east and hilly regions of thecountry.

Agriculture production in these areas isstill almost on the traditional eco-friendlylines and making the farmers aware ofthe methods of organic farming may notbe very difficult.

A strategy to prevent sudden andsubstantial yield losses is to convert toorganic production in phases to reducethe risks during the initial years. Thequestion of the vast requirement oforganic matter to the countrys farms inorder to switch over to organic agricultureis also answered. Chemical fertilizer isapplied only in 30 percent of thecultivated area, which is irrigated, and theremaining land is under rainfedagriculture with almost no fertilizerapplication. Also the rainfed area undercultivation accounts for only 40 percentof the foodgrain production of thecountry (Veeresh, 2003). Theintroduction of organic farming in theseareas will allay the fears of a sudden sharpdecline of food production which manyfear may drive the nation to food imports.Thus the demand for biomass for theproduction of organic manures can alsobe controlled in a phased manner.Moreover, the simple technologies withlow input use have been developed fordry farming and they can be transferredto the farms for organic cultivation. Theresulting increases in productivity andsustain-ability of production willincreasingly contribute to the bettermentof the economic condition of the dry landfaming community, which is one of thepoorest in the country.

Conclusion

The ill effects of the conventional farmingsystem are felt in India in terms of theunsustainablity of agricultural production,environmental degradation, health andsanitation problems, etc. Organicagriculture is gaining momentum as analternative method to the modernsystem. Many countries have been ableto convert 2-10 percent of theircultivated areas into organic farming. Thedemand for organic products is growingfast (at the rate of 20 percent per annumin the major developed countries).

*The author is Head of the Department forEconomic Analysis and Research, Nabard


OPINION

India is one of the fastest growing economies of the worldand is currently the focus of a great deal of internationalattention. It is the seventh largest country in the world in

terms of its geographical size. Today it has a population of nearly1.1 billion which makes it the second most populous nation inthe world. With current population growth by 2025 India mayeven have caught up with China according to the UN.

In this MAP we focus on agriculture and especially on agriculturetrade. India has a large and diverse agriculture and is one ofthe worlds leading producers. It is also a major consumer, withan expanding population to feed. For this reason and becauseof its agricultural and trade policy, its presence on the worldmarket has been modest in relation to the size of its agriculture.

India is still a big unknown. While it has been a small netagricultural exporter overall since 1990, in recent years therehave been many changes in its agriculture and trade policiesand significant changes in its net trade position for manyindividual products.

The leading forecasting institutions expect that India will playa bigger role in world markets in future. In a number ofmarkets it is expected to consolidate its position among theworlds leading importers (vegetable oils) and exporters (rice).Given the size of Indian agriculture, changes in its balancesheets for key commodities have a potentially large impacton world markets.

Economic Developments

India is the third largest economy in Asia after Japan and China,as measured in terms of its Gross Domestic Prod-uct (GDP)and it is continuing to grow rapidly.

The Indian economy has seen high growth rates of more than8 percent since 2003. In 2005 and 2006 GDP grew at a rate ofover 9 percent. Globally Indias growth is surpassed only bythat of China. This is expected to continue with growth justunder 7 percent by 2015. Graph 1 compares GDP growth inIndia, China and Brazil, where growth has been much slower.

High growth rates have significantly reduced poverty in India.However its GDP per head is still very low (estimated at US$820 in 2006), so it remains classified by the World Bank as alow income country. The World Development Report 2008states that over one third of the population of India was livingbelow the poverty line in 2004-2005, managing on less than$1 a day.

Cereals are the staple food in India, providing over half thecalories consumed, while pulses are the main proteinsupplement in the diet. Rising incomes and the influence ofglobalisation have contributed to changes in the diet with aslight decrease in cereals consumption and an increase in pulses,edible oils, fruits and vegetables, milk and meat, which isgrowing from a low base. In the case of edible oils, the fall inprices after the liberalisation of imports further stimulated

Indias Role inWorld Agriculture


OPINION

consumption. However although diets are diversifying, Indiastill lags behind Brazil and China in terms of daily calorie intakeper capita.

Agricultural Policy

Indian agriculture policy is aimed essentially at improving foodself sufficiency and alleviating hunger through food distribution.Aside from investing in agricultural infrastructure, thegovernment supports agriculture through measures includingminimum support prices (MSP) for the major agricultural crops,farm input subsidies and preferential credit schemes.

Under the price support policy, MSPs are set annually for basicstaples to protect producers from sharp price falls, to stabiliseprices and to ensure adequate food stocks for public distribution.In the past guaranteed prices have been below the prevailingmarket prices, according to the International Food PolicyResearch Institute (IFPRI) in 2007.

At the same time subsidies on farm inputs including fertilisers,electrical power and irrigation water have led to inefficient useof inputs and indirectly subsidise income. IFPRI concluded thatsupport for agriculture (from 1985-2002) has been largelycounter cyclical to world prices.

OECD appears to reach a similar conclusion. Its 2007 monitoringreport points out that the level of agricultural support (coveringtransfers from taxpayers and consumers) for India wouldappear to be slightly below the OECD average but considerablyhigher than that of the emerging economies reviewed by theOECD. Furthermore the instruments of support used are theleast efficient and the most trade distortive forms of support.

Key Agricultural Sectors

India is among the worlds leading producers of paddy rice,wheat, buffalo milk, cow milk and sugar cane. It is either theworld leader or the second largest producer in eight out of itstop ten products. Some of these are widely traded while othersare more specialist products.

Table 2 shows the composition of production by value for 2003-

2005, when paddy rice was the top sector, followed by buffalomilk and wheat. India is now the largest milk producer in theworld and the second largest producer of paddy rice, sugarcane, wheat, cow milk, groundnuts and certain fresh vegetables.But it is also a leading consumer. So although it exports theseproducts the quantities will vary depending on the size of thecrop and demand.

Meanwhile India is the world leader in such specialist productsas buffalo milk, spices (pimento) and bananas, mangoes,chickpeas etc., which are important in the Indian diet and arealso exported.

And India is the fifth largest cultivator of biotech crops in theworld, ahead of China. In 2006, about 3.8 million hectares ofland were cultivated with genetically modified crops, by about2.3 million farmers. The main GM crop is Bt Cotton, which wasintroduced in 2002.

Trade

Reforms introduced in India in the early 1990s have greatlyincreased overall trade flows. However it has consistently run atrade deficit unlike China and Brazil (US$35 billion in 2004-2005).

The EU (27) ranks as Indias largest trading partner accountingfor about 21 percent of total Indian trade in 2005, ahead ofthe United States and China. Meanwhile India is the EUs tenthlargest trading partner accounting for 1.8 percent of total trade.In 2005 its trade deficit with the EU was about 2 billion.

India is one of the leading members of the G-20 within theDDA negotiations. It has a preferential trade agreement withMercosur since 2005. It is also part of the South Asia Free TradeAgreement (SAFTA) covering seven nations (India, Bhutan,Nepal, Sri Lanka, Pakistan, Bangladesh and the Maldives) whichcame into effect in January 2006 with the aim of reducing tariffsfor regional trade. And it is currently negotiating Free TradeAgreements with the EU and ASEAN. Turning our focus to trade

Table 2: Top 10 sectors of India & world rank

Source: FAOSTAT, world rank calculated by DG AGRI

Commodity Rank World Rank ProductionIndia 2005 Avg 2003-2005

Billion $ Million T

Paddy rice 1 2 27.5 129.2

Buffalo milk 2 1 25.2 50.5

Wheat 3 2 10.9 69.7

Cow milk 4 2 10.0 37.5

Fresh vegetables 5 2 6.6 34.9

Sugar cane 6 2 5.2 250.0

Potatoes 7 3 3.6 25.0

Groundnuts 8 2 3.4 7.1

Pimento 9 1 3.3 1.1

Buffalo meat 10 9 3.1 1.5


OPINION

in agricultural and food products; this accounts for a relativelysmall share of overall Indian trade. Agricultural exports represent9 percent of the value of total exports while the share ofagriculture in total imports is just 5 percent.

When compared with other main players on world marketsand considering the size of the country, Indian agricultural tradeflows appear relatively modest. As the key goal of agriculturalpolicy since independence has been to achieve self-sufficiency,trade has been relatively limited. However technologicaldevelopments and macroeconomic policy reforms have broughtincreased liberalisation, following the implementation of theUruguay Round Agreement, and have contributed to changesin agricultural trade.

Thus India is a net exporter of agricultural food products with asmall surplus of just under $4 billion. Between 1993-1995 and2003-2005, exports nearly doubled while imports grew almostthreefold. The value of exports grew from $4 to $7.7 billionwhile imports rose from $1.8 to $5.2 billion within a decade.

The balance of agricultural trade has always been in surplusthough there were sharp fluctuations during the nineties. Since2000 both imports and exports have grown steadily.

Indias Main Export Partners

India is diversifying its export markets. The EU remains its topmarket, accounting for 16 percent of the value of export salesin 2003-2005, although this is a decline from 21percent adecade ago. ASEAN is in 2nd place with 14 percent, althoughits share has also fallen.

This trend may be reversed however as India is negotiatingFree Trade Agreements with the EU and with ASEAN.Meanwhile trade with neighbouring Bangladesh and China(currently 7.5%) is growing fast. The US market share hasremained steady at 10 percent and also that of Saudi Arabia.

A Closer Look at Indias Imports

ASEAN is by far the biggest supplier of agricultural products toIndia, accounting for a massive 40 percent of its imports in2003-2005. Argentina and Brazil rank 2nd and 3rd respectivelywhile the EU only has 4 percent market share (down from 7%a decade ago), ranked at number six in 2003-2005. While thisis roughly equivalent to the share of imports from China andthe United States, it is far below the share enjoyed by Mercosur(supplying about 17% of imports) and ASEAN countries. Over

the past decade ASEAN and Argentina have both substantiallyincreased their market share at the expense of the US, the EU,Brazil and China. Together the top six suppliers now accountfor over 70 percent of imports.

Indias agricultural imports are focused mainly on intermediateproducts. These account for 56 percent of imports; final productsare 31 percent, while the share of commodities is just 13percent.The biggest growth has been in intermediate products whichincreased nearly fourfold over the period.

This reflects the importance of vegetable oils in Indian imports.Palm oil is by far the biggest import at 29 percent of the total.Together with soybean oils, they represent over 40 percent ofimports. Protein rich peas are also within the top 5. The increasein imports of these foodstuffs is driven by population growth.While cashew nuts and cotton are among the top exports, theyalso appear in the top 10 imports. Cashew nuts are imported

Indian agri-food exports by destination(million $)

Source: COMTRADE

India agri-food imports by origin (million $)

Source: COMTRADE

Structure of Indian agricultural trade (million $)

Source: COMTRADE


OPINION

for further processing as are silk and cotton, which are used inthe Indian textile industry.

Outlook for Agriculture and Trade

OECD and FAPRI (Food and Agricultural Policy ResearchInstitute) both expect India to play a bigger role in world marketsin future. It is likely to remain a small net exporter overall.

India is forecast to consolidate its position among the worldsleading exporters of rice (its top export), though the volume ofexports has been erratic since the mid nineties (depending onthe size of the crop and on domestic consumption). Currentlyit is the second largest rice producer after China and the thirdlargest net-exporter after Thailand and Vietnam.

FAPRI expects it to increase its world market share from 16percent to 20 percent by 2015 as area and yields increase andper capita consumption declines. OECD meanwhile takes a moreconservative view of production prospects and therefore ofexport potential. FAPRIs and OECDs projections for the globalrice trade.

Its world market share is expected to rise from 4 percent to 6percent over the coming decade, thanks to robust growth inproduction (second only to Brazils) and a slowdown inconsumption growth. For soya meal Indias world marketposition is relatively stable and it is expected to stay at about 6percent world market share (FAPRI).

Indian buffalo beef exports are projected to grow as productionrises faster than demand, with world market share for beefstable at around 11 percent. On the dairy side, net exports of

butter and SMP will also grow. For butter although there is astrong increase in production, this is in response to surgingdemand growth, so India remains a small net exporter. On theother hand it becomes a significant net exporter of SMP, withits share of world trade rising from 4 percent to 6 percent.

Conclusions

Agriculture occupies a prominent position in Indian policy-making not only because of its contribution to GDP but alsobecause of the large proportion of the population that isdependent on the sector for its livelihood.

The growth in population and wealth has stimulated demandto the extent that domestic production has not always beenable to keep up and there is increasing speculation that theIndian economy may be overheating leading to inflation. Thedownside of the increased import demand and the currentcommodity boom is that Indias food import bill will rise sharply.

However it is clear that Indias agricultural sector has madehuge strides in developing its potential. The green revolutionmassively increased the production of vital food grains andintroduced technological innovations into agriculture. Thisprogress is manifested in

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