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New Agri Revolution in India!

When and Why will it happen?

S. Sivakumar, ITC Limited

Millennium Mams, Kolkata


28 Apr 2009
What you can take away from the session

Three Images
What’s the outcome of the first revolution?

Image 1
Why will another revolution happen?

Image 2
When will that revolution happen?

Image 3
Contents
“Paradox” of the First Revolution in Indian Agriculture

Leverage the “U” Turn driven by some Mega Trends


for another revolution

“Fusion” approach
The only way that will make next revolution happen
Contents
“Paradox” of the First Revolution in Indian Agriculture

Leverage the “U” Turn driven by some Mega Trends


for another revolution

“Fusion” approach
The only way that will make next revolution happen
Can boast of Research & Extension that put PL-480 behind us

yet

stagnation in farm productivity


Can produce anything that is produced anywhere in the world

yet

consumers have little choice


Among the largest producers of several crops

yet

insignificant volumes processed


Numerous intermediaries that add great value at micro level

yet

uncompetitive value chains at macro level


Largest workforce employed in the sector

yet

poor per capita income


In other words… err, image…
Contents
“Paradox” of the First Revolution in Indian Agriculture

Leverage the “U” Turn driven by some Mega Trends


for another revolution

“Fusion” approach
The only way that will make next revolution happen
New preferences of today’s consumers

need

a demand driven value chain


The mother of all convergences, i.e. 5 Fs

means

A Food crop doesn’t just compete with another Food crop


but, with Feed, Fibre, Fuel and Firms too
Shortage & rising cost of farm labour

is pushing

land consolidation & fragmentation at once


Slow but sure global trade integration

is pushing

Resource Efficiency Vs Self Sufficiency


Bio Technology & Precision Farming

are creating

A cross industry blur (farm inputs, food, pharma, packaging)


Where does that leave us?

Compete globally; Include locally


Food Safety for rich; Food Security for poor
Support large farmers; Protect small farmers
Step up productivity; Conserve nature
Risks are here today; Institutions still evolving
How do we handle this complex challenge?
Contents
“Paradox” of the First Revolution in Indian Agriculture

Leverage the “U” Turn driven by some Mega Trends


for another revolution

“Fusion” approach
The only way that will make next revolution happen
Private Sector essential, to…

Align production with consumer preferences


Execute personalised crop management solutions
Add value to farm produce
Build new market institutions to manage risk
Build efficient linkages along the value chain
Government, to…

Reform APMC, ECA, FCRA etc.

Foster competition among market participants

Regulate to balance interests of poor consumer,


small farmer and the fragile ecology

Invest in the critical physical infrastructure

Share Research Knowledge & Weather Information


In other words… err, image…
+ x =
Does that sound utopian?
Actually, the revolution has begun!
ITC eChoupal

Price Discovery at Mandi Video

Price Discovery at ITC eChoupal Video 1


Video 2

Crop Management Video


Thank You