India’s Agrarian Crisis and Corporate-Led Contract Farming: Socio-economic Implications for Smallholder Producers

The paper discusses India’s agrarian crisis and the role of corporate-led contract farming in addressing these crisis. A two-stage Heckman model was used to explain determinants of participation in contract farming, and whether participation in contract farming affects farm income. The results indicate that contract farming has a positive impact on crop productivity and farm income. The socio-economic factors that influenced participation in contract farming were education, age, farm size, access to institutional credit, source of off-farm income and membership to an organization. Factors related to the likelihood of participation in contract farming slightly differed from the factors affecting farm income.Agrarian crisis, Smallholder producer, Corporate-led contract farming, Agricultural Produce Marketing (APMC) Act, Heckman model, Institutional and Behavioral Economics, Marketing, Research Methods/ Statistical Methods, Q10, Q13,

India’s Agrarian Crisis and Smallholder Producers’ Participation in New Farm Supply Chain Initiatives: A Case Study of Contract Farming

Indian agriculture is at crossroads and one of the major challenges is to reverse deceleration in agricultural growth. Main reason for deceleration in agricultural growth is declining investment particularly public investment in agriculture research and development and irrigation, combined with inefficiency of institutions providing inputs and services including rural credit and extension. Other factors such as land fragmentation, out-dated tenancy laws, lack of modern market and rural infrastructure, inappropriate input pricing policies, etc. are also responsible for agrarian and ecological crisis in the country. The crisis of stagnation in agriculture needs urgent attention. The government has renewed focus on agriculture and promoting public-private partnership to accelerate growth in the rural economy. Many Indian and multi-national agribusiness companies have entered Indian agribusiness sector. The central government has also initiated reforms in outdated laws such as Agricultural Produce Marketing Committee (APMC) Act, Essential Commodities Act (ECA), and given some incentives like waiver of market fee, rural development tax, etc. for companies making investment in agribusiness sector. The central as well as state governments are promoting involvement of corporate sector in agriculture through contract farming with a view to enable farmer to have access to better inputs, extension services and credit from agribusiness companies. Contract farming is also supposed to eliminate and/or reduce markets and price risks, which farmers face. However, it all depends on the nature of contracts, legislation for regulation of contract farming, enforcement, dispute resolution mechanisms, etc. This paper tries to understand socio-economic implications of corporate-led initiatives in agriculture (mainly contract farming) in the state of Punjab, which has more experience in contract farming compared to other states. The results indicate that contract farming is a good initiative for medium and large-scale farmers producing for the market but the long-term success of such initiatives will depend on how a large number of small and marginal farmers can be linked to restructured markets under changing market and policy environment. The study points out that it is important to provide an integrated set of services including credit and not just seed and limited extension services. Partnership between public and private sector companies/organizations is needed in order to provide these integrated services. More important is to improve bargaining power of smallholder producers while also reducing transaction costs for companies through promotion of producers’ groups/association/cooperatives. Small farmers will be able to effectively participate in the changing markets and establish links with new market chains (supermarkets, agribusiness companies, processors, exporters, etc.) only if they have access to basic infrastructure, quality inputs and services and are organized.

Trade liberalization, market reforms and competitiveness of Indian dairy sector

From chronic shortages of milk, India has emerged today as the largest producer of milk in the world crossing 80 million tonnes. This has been achieved largely through a smallholder economy in which "Operation Flood", one of the world's largest dairy development programmes, played an important role. All this happened largely under autarkic framework and regulated public policy dictated by import-substitution strategy. Until 1991, the Indian dairy industry was highly regulated and protected through quantitative restrictions (QRs) and stringent licensing provisions. Since early 1990s, India embarked upon liberal policy framework, which got reinforced with the signing of Uruguay Round Agreement on Agriculture (URAA) in 1994. This opening-up increasingly exposed the Indian dairy sector to the global markets, which in-turn are distorted by export subsidies, domestic support and prohibitive tariffs in developed countries. This raises several issues: Will the Indian dairy sector survive in the new brave world of liberalization? What are the options for India in the coming rounds of multilateral trade negotiations, given scores of distortions that plague the world dairy markets? What sort of domestic reforms are required in the Indian dairy sector that could promote its competitiveness in a fast globalizing world? This study responds to these issues by empirically mapping the competitiveness of Indian dairy sector over the period 1975-2000 and delineating policy options for international negotiations and more importantly, domestic policy reforms, given India's commitments to the WTO.World Trade Organization ,trade liberalization ,Dairy products industry ,livestock ,

High-Value Agriculture in India: Past Trends and Future Prospects

Given the declining share of traditional agricultural commodities in production, consumption and trade, horticulture and other non-traditional high-value agriculture represent an important area of potential income growth in rural areas. The high-value agriculture-led-growth strategy also provides significant scope for achieving greater commercialization of smallholder agriculture. Despite the potential, the contribution of high-value agricultural exports is still small but increasing. This paper examines the past and existing performance and identifies likely challenges and opportunities for high-value-agriculture in the country. The findings of the study reveal a structural shift in consumption pattern away from cereals to high-value agricultural commodities, both in rural and urban areas, in the last two decades. This shift in dietary patterns across states and income classes is also observed. The results reveal a relatively strong and growing demand for livestock products and fruits and vegetables in both rural and urban areas. The average expenditure as well as share of beverages has increased by about six times in both rural and urban areas. Due to shift in demand pattern towards high-value crops, the farmers have also responded to market signals and gradually shifting production-mix to meet the growing demand for high-value commodities. This is reflected in the changing share of high value crops in total value of output from agriculture. The share of high-value commodities/products (fruits and vegetables, livestock products, fisheries) increased from 37.3 percent in Triennium Ending (TE) 1983-84 to 41.3 percent in TE 1993.94 and reached a level of 47.4 percent in TE 2007-08. The trade in high-value products has also increased during the last decade. Overall, fresh fruits and vegetables exports represent a very small share of domestic production and agricultural exports but have increased significantly. During the 2000s, the growth rate in value of exports of rice, sugar, marine products, tea, etc. declined, while high-value exports (fruits and vegetables, floriculture, meat, processed fruit juices) grew by about 18 percent annually. However, Indian exports face many constraints in major importing countries on account of quality and food safety issues. The rising demand for high-value commodities, particularly fruits and vegetables and livestock products has led to an increase in imports of many commodities like fresh fruits. While there is an opportunity for increasing exports of high-value products but there is a huge and increasing domestic demand which needs to be tapped. The study suggests that a future road map for high-value agriculture development should focus on investment in technology development and dissemination, basic infrastructure, improvement of technical capacity of producers and other players in the value chain, institutional support in core functions of production, logistics and marketing through concerted public sector support and active public-private partnerships, and provision of quality inputs, in particular planting materials for fruits and seeds for vegetables.

Short-Term and Medium-Term Prospects of Agricultural Sector in Gujarat – Some Policy Recommendations

By mid-September, 2003 it is becoming clear that Gujarat is likely to experience a bumper crop in the year 2003-04. The State Ministry of Agriculture is looking for some concrete suggestions, advice and policy recommendations to better manage the situation likely to be created by the bumper crop this year. Falling prices in the face of bumper crop can considerably wipe out positive effect on agricultural incomes in the hands of farmers in the State. Short-term measures to avoid such a situation need to be integrated into medium term and long term development strategy for the State agricultural sector. The present paper provides some implementable policy recommendations in this context.

India’s Agricultural Development under the New Economic Regime: Policy Perspective and Strategy for the 12th Five Year Plan

During the last two decades Indian agriculture has been facing major challenges like deceleration in growth rate, inter-sectoral and inter-regional equity, declining input efficiency, degradation of natural resources, etc. with consequent adverse effects on food and nutritional security, food inflation and poverty reduction. However, the 11th Plan had some success in reversing the deceleration of agricultural growth witnessed during the 9th and 10th Plan but food inflation still remains a major concern. The growth in agriculture in the 11th Plan is likely to be around 3.2 percent per year, which is higher than 10th Plan growth rate but lower than the target (4.0%) for 11th Plan. The 12th Plan growth target for agriculture sector has been set at 4 percent with foodgrains growth at about 2 percent and non-foodgrains sector (horticulture, livestock and fisheries) growing at about 5-6 percent. However, looking at the growth in agriculture sector in general and high-value agriculture, particularly, horticulture, fisheries, dairy and meat sector during the 11th Plan, there is a need to put additional efforts to achieve 4 percent growth in agriculture. The failure to achieve targeted growth in agriculture has resulted from the inadequacies of the provision of the critical public goods such as research and development, extension services, surface irrigation, rural infrastructure, etc. on which agricultural growth thrives as well as inappropriate policies. In order to achieve the targeted growth in 12th Plan, we need to address some of these inadequacies. The sector would require substantial increase in investment both by public and private sector in agriculture research and development including extension, rural infrastructure, post-harvest and market infrastructure including storage and processing, reforms in laws related to land markets and marketing of agricultural products, and appropriate price policy. The pricing of agricultural inputs such as irrigation, electricity for pumping water, fertilizer, etc. needs rationalization. The distributional aspects of agricultural credit including inter-regional and inter-class inequalities in access to credit, decline in rural branches, declining share of direct credit, etc. must be addressed. People’s participation, which will help in promoting the bottom up approach of planning process and also help in faster diffusion of the technologies and best practices among farmers, community based actions and participation of disadvantaged sections of the society in developmental process, needs to be strengthened.

The intrinsic stiffness of human trabecular meshwork cells increases with senescence.

Dysfunction of the human trabecular meshwork (HTM) plays a central role in the age-associated disease glaucoma, a leading cause of irreversible blindness. The etiology remains poorly understood but cellular senescence, increased stiffness of the tissue, and the expression of Wnt antagonists such as secreted frizzled related protein-1 (SFRP1) have been implicated. However, it is not known if senescence is causally linked to either stiffness or SFRP1 expression. In this study, we utilized in vitro HTM senescence to determine the effect on cellular stiffening and SFRP1 expression. Stiffness of cultured cells was measured using atomic force microscopy and the morphology of the cytoskeleton was determined using immunofluorescent analysis. SFRP1 expression was measured using qPCR and immunofluorescent analysis. Senescent cell stiffness increased 1.88±0.14 or 2.57±0.14 fold in the presence or absence of serum, respectively. This was accompanied by increased vimentin expression, stress fiber formation, and SFRP1 expression. In aggregate, these data demonstrate that senescence may be a causal factor in HTM stiffening and elevated SFRP1 expression, and contribute towards disease progression. These findings provide insight into the etiology of glaucoma and, more broadly, suggest a causal link between senescence and altered tissue biomechanics in aging-associated diseases