AGRICULTURE PRODUCTIVITY IN INDIA ISSUES AND CHALLENGES, MEASURES TO BOOST PRODUCTIVITY AND INNOVATI

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• AGRICULTURE PRODUCTIVITY IN INDIA ISSUES AND
  CHALLENGES, MEASURES TO BOOST PRODUCTIVITY AND
  INNOVATION IN AGRICULTURAL LENDING BY BANKS
  FUTURE TRENDS
• Presented By
• Agriculture Officers
• Group I
• Regional Staff College
• Punjab National Bank
• CBD Belapur, Navi Mumbai

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• Introduction
• Three indices of agricultural productivity land
  productivity, labor productivity and aggregate
  productivity have been employed to measure
  productivity patterns in India.
• The spatial variation of land productivity is
  positively related to fertilizer use, irrigation,
  and urban-industrial development and is
  negatively related to population density.

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• Aggregate productivity is positively associated
  with fertilizer and irrigation use and negatively
  with the densities of population and agricultural
  workers.
• The significant explanatory variables in the
  regressions explain 61 percent of land
  productivity, 57 percent of labor productivity,
  and 42 percent of aggregate productivity.

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Different crops and its productivity
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MAJOR CHALLENGES
I. Production Planning and Remunerative
Marketing A. Restructuring and Retooling State
Land Use Board B. State Level Grid of
Community Food Banks C. Livestock and
Livelihoods II. Achieving Productivity, Quality
and Income Revolutions in Farming. A.
Inter-Agency Action Council for Rural
Technologies. B. Integrated Mission for Farmers
Well-being. III. Generating more Jobs and
Sustainable Livelihoods in Rural Areas. IV. Agro
- Aqua Farms along the Coastal Areas. V.
Increasing Agricultural Exports
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Key Issues and Challenges
Slow down in agricultural GDP 1. From 1980-90
was 3.5 is less than in 1990-2000 2 2.
Poorest state growth is less than 1 3. lead to
widening rural-urban income gaps Low agriculture
productivity 1. Crop yield are low relatively
to other countries Increasing natural resources
degradation 1. soil erosion, salinity,
alkalinity, declining ground water levels
partly due to fertilizer, pesticide
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• How to change farm production
• Increase farm income
• -Increase productivity
• -Increase farm size
• -Allied activities
• -use of high yielding varities
• Decrease costs in farm

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• Challenges of agriculture market
• Increase demand
• -food
• -biofuel
• -other non-food usage
• Increased prices
• -ecological products
• New products

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• Challenges of agriculture income
• Income from agriculture production
• Income from allied activities
• Income from bi-product
• Income from natural resource

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• How to face challenges
• Infrastructure for production
• -roads, transport etc.
• -knowledge Research, Advisory service etc.
• -service machinery, marketing
• -information and communication technology
• Life quality in rural areas
• Provide different government subsidies
• Easy access to bank loan

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INNOVATION IN AGRICULTURE
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Integrated Farm Management

• Integrated Farm Management (IFM) is an approach
  that provides
• It combines the best of traditional farming
  methods with modern technology, allowing farmers
  to manage their farms in an informed,
  professional and caring way.
• Traditional farming methods include crop
  rotations, animal production, poultry and
  fisheries would necessary to keep animals and
  crops healthy.
• IFM ensures the highest standards of food
  production with the minimum environmental impact,
  a 'win win' situation.

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• Key principles of Integrated Farm Management
• A commitment to good husbandry and animal
  welfare
• Efficient soil management and appropriate
  cultivation techniques
• The use of crop rotations
• Minimum reliance on crop protection chemicals
  and fertilisers
• Careful choice of seed varieties
• Maintenance of the landscape and rural
  communities
• Enhancement of wildlife habitats
• A commitment to team spirit based on
  communication, training and involvement

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Advantages of integrated farm management

• To good husbandry and animal welfare
• To know the cropping and environmental risks on
  the farm.
• To minimise the use of fertilisers, crop
  protection chemicals, and fuels
• To maintain the soil and its fertility
• To improve wildlife habitats appropriate to the
  farm concerned
• To maintain and improve landscape and farm
  buildings
• To continuous farm income of farmer
• To regulate repayment due to continuous source
  of money
• Less chances of failure of our project
• To improve farmers life style

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• INNOVATION IN AGRICULTURAL LENDING BY BANKS
• FARM CREDIT SYSTEM -To facilitate this inevitable
  progress, there is need for a national grid of
  formal and institutional credit mechanisms which
  can ensure the availability of credit to small
  and marginal farm families at the right time,
  place and extent.
• MICROFINANCE- Self-Help Groups (SHGs), a means of
  reaching rural women with savings and credit
  services, have taken off dramatically in India,
  where an estimated 25 million women are members.
• VENDOR FINANCING- A loan from one company to
  another which is used to buy goods from the
  company providing the loan. In this way, the
  vendor increases sales, earns interest, and may
  sometimes also acquire an interest in the
  customer.

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• FUTURE TRENDS
• We should find a way of providing support to a
  group of farming families organised on the basis
  of market driven farming enterprises.
• Self-help groups (SHGs) need to be given not
  only credit, but also the needed support services
  which will make the credit yield the desired
  benefit.
• Community Banking Systems to support SHGs are
  also important to reduce the transaction cost and
  ensure timely availability of the needed credit.

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• Micro-enterprises supported by micro-credit have
  now become the new mantra for poverty
  alleviation.
• Unfortunately, macro economic policies,
  particularly import policies were often not
  designed to ensure the survival of micro
  enterprises.

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• Therefore, there is need for harmony among
  policies for credit, trade and infrastructure
  development.
• The Reserve Bank of India (RBI) can only
  announce credit policies. They often fail in
  conferring the desired benefits because of the
  absence of horizontal linkages among production
  and marketing factors which alone can make credit
  a powerful instrument for agricultural advance
  and agrarian prosperity.

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• For sustainable food security, it is inevitable
  to increase productivity in perpetuity without
  associated ecological and/or social harm, a
  phenomenon termed as ever-green revolution.
• Rural India is crying for attention with
  reference to basic infrastructure relating to
  power, communication, storage, processing and
  marketing. Factor productivity is coming down and
  the cost of production is going up.

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Thanks for your attention