Dr. RAVI GUTTAL

Innovation for small farmers

LOW YIELDS EDUCATION

MONEY DISTANCE

TIME CONSTRAINTS WATER SCARCITY LABOR SHORTAGE

ISSUES

RAGHU, A small farmer in South India

THE BIG PICTURE

1960 1980 2000 2020 2040

1.4 Billion people

India’s Population

Agricultural land (% of land area)

35.7 %

Increasing population

Limited arable land

233 million underfed people in India

THE BIG PICTURE

THE BIG PICTURE

INDIA 2,471

CHINA 5,460

US 7,238

Cereal yield (kg/ha)

INDIA 150

CHINA 277

US 258

Tractors per 100 km2

Low yields in India

Low Tractor penetration

INDIAN AG VALUE CHAIN

Information Asymmetry

Inaccessible Value Chain

Low Mechanization

INEFFICIENCY

OPPORTUNITY

Low Mechanization

Inaccessible Value chain

Information Asymmetry

Solution to one problem automatically addresses the other problems as they drive

each other

FOCUSED PROBLEMS

No proper training facilities to operate farm machinery

Lack of education about better agricultural best management practices

Low numbers of readily available labor due to urban migration

Non-localized and inaccurate weather updates

Limited accessibility to the agricultural value chain

Inconsistent water supply

Limited options for financing farm equipment

Training | Education | Labor | Weather | Distance | Accessibility | Water | Finance

SOLUTION

INNOVATION

“I define creativity as producing novel, workable ideas and solutions to problems; innovation is implementing those ideas within an organizational context.”

– Teresa Amabile

Michael Roberts, “The Power of Ordinary Practices”, (Harvard Business School Working Knowledge, September 20, 2006), retrieved from http://hbswk.hbs.edu/item/5492.html on January 19, 2010

Creativity vs. Innovation

Farmer

Seeds, Fertilizers,

Pesticides, Irrigation

solutions

Any output

procuring company

and

Future Market

John Deere Tractors

Implements, Agri

Services

Agri Business

Centers

Ag Universities Local NGOs and

National NGOs Local leaders

Crop loan, Weather

Insurance, farm

mechanization loan

INPUT SUPPLIERS MARKET LINKAGES

FINANCIAL

INSTITUTIONS

Products Solutions

Progressive

thinkers

Building JD Agri - Ecosystem

JOHN DEERE

FUNCTIONALITY

SCHEDULING FINANCING IMPLEMENTS RATINGS

SALES TRAINING INFORMATION BROCHURES REPAIRS

LASER LEVELLINGSOIL TESTINGTILLAGEAG ADVISORY

INTERFACE

Gujarat Project

| Gujarat Project Update| July 2009 15

Self Help Group - Concept

Small Farmers form a group facing Common Situation

Pool Resource Gather Information Mutual Support

Non Governmental Organization

| Gujarat Project Update| July 2009 16

Public Private Partnership Initiative

Public Private

Farm

Mechanization

Project

TRIBAL DEV DEPT

Funds

Partnership

| Gujarat Project Update| July 2009 17

Stakeholders Roles and Responsibilities

JD Govt

NGOs Monitoring & Supervision

Hiring Tribal Youths

Usage of Tractors

Training Tribal Youths

Maintenance for 5 years

Supply Farm Machinery Funding

JD

Deale

rs, Im

ple

Mfg

s

SH

Gs

Facilitator

John Deere Drives the Project

| Gujarat Project Update| July 2009 18

Resource

Centre

One Resource Centre caters 600 acre of farmland

Assets

6 Tractors

Implements

6 Operators

Manpower

1 Mechanic

Implementation Model

|

Machinery & Technology Division

Name of component Pattern of Assistance Central /State/ Farmer

12th 5 Year plan out lay Rs. Cr

1 Promotion & strengthening of Agricultural Mechanization through Training & Testing

100% Central 237

2 Post harvest technology & Management 100% Central 125

3 Financial assistance for procurement subsidy for selected agricultural machinery & equipment

90% Central 10% State

900

4 Establishment of farm machinery banks for custom hiring

90% Central 10% State

624

5 Establishment of high tech. productive equipment centers to target low productive agricultural regions

90% Central 10% State

50

6 Enhancing farm productivity of villages level by introducing appropriate farm mechanization

80% Central 10% State

10% Farmer 70

7 Input subsidy to small & marginal farmers through co-operative in North Eastern region for adopting suitable farm mechanization

80% Central 10% State

10% Farmer 75

8 Assistance for mechanized farming 90% Central 10% State

215

Total outlay - 2296

Machinery & Technology Division (M&T), Department of Agriculture and Cooperation, Ministry of Agriculture, Govt. of India is launching a National Mission on Agricultural Mechanization (NMAM) during 12th Plan. Submission on Machinery & Technology has 8 components as under:

|

Government’s initiative on CHC

THANK YOU