Agricultural Diversification and Role of ATMA in Bihar

1. Agricultural Diversification and Role of ATMA in Bihar Dr.K.M.Singh Director, State Agricultural Management and Extension Training Institute, Bihar Presentation in the Global Meet for a Resurgent Bihar, 19-21 February 2007, Hotel Maurya, Patna, India

2. Historical Perspective • Post independence, single minded focus on removing shortages and self reliance for basic cereal crops • Research system served this purpose by delivering dramatic productivity increases by introduction of new varieties and use of chemicals for nutrition and protection • Training & Visit (T&V) Extension system successfully managed technology transfer to the farmers • It was believed that “Market Forces” could not adequately address the needs of both farmers and consumers. Regulatory framework was designed to circumvent the market

3. Historical Technology Dissemination Model Information Flow Create Knowledge Extension Teams ICAR R&D system & Agricultural Universities Farmer Product Flow Processors Brand Marketers Aggregators Farmer Mandis Consumer Distributor/ Retailers State Procurement System • No market risk for the farmer – Support price system • Firm contract with the government • Neither the research system nor the farmer required any connect with the consumer • and its demands. Burdened with this baggage of historical success - search for the new paradigm

4. Why the need for the new paradigm? • Falling trend growth rate of agriculture. • Productivity increases are not keeping pace with the rising population trends. • Falling water tables & rising soil salinity. • Soil degradation due to intensive chemical usage. • Piling food grain stocks and increased dependence on oil seed & oil imports. • R&D system should deliver the "increased income aspirations” of the farmers. • India’s factor price advantage & diverse agro-climatic conditions, not leveraged to become a player in the international market.

5. Ploughing ahead …..times have changed Domestic International Market Consumer Consumer Exporters Distributor/Retailer Processors Brand Marketers Imports Aggregators Mandis Farmers • Inadequate information with farmers to plan production– Little or no linkages • with the market • Research system with limited connect with the market • Public actions focused on crisis resolution, not at systemic solution • Private sector focus on articulating problem only a few initiatives to show for.

6. Myths about Agricultural Research & Extension • R&D System is not delivering • Extension system has collapsed • Need for increased role for private sector • Farmers are not willing to change • State Government are not responsive • However the Reality is • R&D system has the knowledge base but lacks means of transfer to the farm • Farmer is willing to change, can take technology risk provided he is insulated from the market risk. • No public support for new initiative leading to collapse of the T&V extension • services. • Few Private sector players operating in limited pockets at best equipped to • play the role of facilitators – NOT YET READY TO LEAD. • Some aggressive state agendas neutralized by inertia in other states.

7. Framework for Crafting the Research Agenda • R&D agenda should be driven by market demand. Links with the Private sector can fill in this gap. • Benchmark with the best in the world • Identify regions and crops where we can be better than the best • Evaluate nationally & globally available varieties to select candidates for propagation. • Adopt and develop package of practices which are locally relevant and within the resource base of the farmer • Maintain focus on optimizing water usage and rationalized chemical inputs to build sustainability • Public and private partnership with input companies on the basic research agenda. “Redefine research agenda to be in-tune with market demand & leverage India’s resource base on a sustainable format.” Only TECHNOLOGY which delivers HIGHER INCOMES for the farmers will SUCCEED!

8. A Possible Roadmap Varieties • Leverage Bihar’s diverse and favourable agro climatic conditions to create: • “Specialized” “Regional” production centers : Specialized Regional production centers Water availability Farmer’s Capability • Region Crop Market Linkage Nutrition/Protection Plan Only way of maintaining competitiveness in a world focused on SPECIALIZATION!

9. Technology Transfer Enablers • Evaluation of promising varieties and hybrids- short listing selection • Blueprint for agricultural practices after adapting to local conditions, • to suit intellectual & financial means of the farmer • Multi locational trials including at farmers’ fields • Evaluation of farmer economics model Commercialization Technology Transfer • The extension services team - selection and training • Farmer education program • Demonstration farming R & D Activities • Ensure market and predictable pricing • Timing the harvest to optimize the returns • Post harvest management to ensure quality • Prompt farmer payment system • Ensure “adequate financing” to fund the inputs

10. What should be the pattern of engagement ? • It has been seen elsewhere that successful commercialization of technology works because there is a demand. • As yet, no established demand for Agricultural technology by the private sector. • “Public- Private Partnerships” rather than pure “Commercial engagements” need to be developed. • Involve private sector in drawing up specific work plan of research institutions. • Leverage both public & private sector resources for reaching out to the farmer • Government market interventions to support new technologies and diversification

11. Challenges before Extension System • To respond to food and nutritional security, poverty alleviation, diversifying market demand, export opportunities and environment • Effective linkages between production and agro-processing for value added products • Sustainable management of natural resources – land and water • Public funding in extension is under considerable strain, getting private funds need of the hour.

12. System Constraints • Extension programs heavily top-down: Extension field staff, primarily handing out central government funded inputs and subsidies, rather than assisting farmers to increase their incomes • By focusing on staple food crops, extension ismostlysupply–driven rather than being demand– driven or market–driven • Lack of attention to farmer problems; extension system not accountable to farmers • Inadequate technical & managerial capacity, especially among the field-level extension staff posted in the districts and blocks • Absence of any mechanisms to empower farmers • Weak involvement with the private sector • Weak R-E-F-M linkages

13. Shift from food security (i.e.,Green Revolution) to diversifying into high-value products India had become self-sufficient in basic food crops Growing domestic market for high-value products; dairy, eggs, fresh fish, fruits and vegetables, etc. To implement this new strategy, farmers had to be organized, trained and linked to these new domestic and international markets Implementing organization pilot tested under NATP was theAgricultural Technology Management Agencyor“ATMA” (In Hindi, ATMA mean “soul;” therefore ATMA has become the soul of agricultural development in India and Bihar.) Key Elements of the New Strategy

14. ATMA was the Mechanism Used to Decentralize Extension and Diversify Agriculture:Which is Critical to Building a “Market-Driven” Extension System • Regional and urban market opportunities tend to be “location-specific;” therefore, extension planning must be “bottom-up!” • The ATMA model pilot-tested between 1998-2005; now the Government of India is implementing this “market-driven” extension or ATMA model nationwide in 252 districts and it may be up scaled to cover the whole country in the XIth Plan.

15. Steps in Implementing the Strategy • Conduct PRA and then develop a Strategic Research and Extension Plan (SREP) for each Project District • Identify and evaluate “Success Stories” • Determine most promising products/markets • Organize farmers into groups • Farmer Interest Groups (FIGs) at village level & Farmer Associations (FAs) at block, district & state levels • Farmer leaders are critical to the success of FIGs • Exposure visits and demonstrations are used to motivate FIG members. • Investigate markets to identify interested manufacturers or wholesale markets (i.e., avoid traders; shorten the supply chain to avoid middlemen.)

16. Bridging Research & Extension Global Markets FIG FIG Farmer Association FIG FIG FIG FIG FIG FIG FIG FIG Urban Markets FIG FIG FIG FIG FIG Local Markets FIG FIG Building Social Capital VIS-À-VIS MARKET DEVELOPMENT Two basic types: Bonding Farmer Federation

17. Implementing the Strategy (cont.) • Collaborate with research (e.g. SAUs or KVKs) to develop and test production and post-harvest technologies and then train FIG members to produce to contract specifications. • Public-Private Partnerships are emphasized at block level; emphasis is on “contract farming” between FIGs and companies(e.g. Pepsi and Hindustan Lever are contracting for basmati rice and vegetables for processing) • Some other companies are doing this on a smaller scale in Bihar ( Aromatic crops, exotic vegetables, organic farming etc.)

18. Example-Lemon grass oil production Flow Chart Up to 5 years Harvesting for distillation every 2-3 months depending on growth of crop Field Distillation for Lemongrass oil every 2-3 months Up to 5 years Oil sold @ Rs.300/- per kg total oil yield 120 kg per year 12-14 Months Transplanting 6-8 month old plantlets in the field 9 Months Oil sold to processors after 12 Months to 5 years Popularization and technical support from ATMA, Patna and KVK, Barh Root stock Growing in nursery in 1/5th area of intended crop 6 Months Lemongrass Saplings from CIMAP, Lucknow or FFDC, Kannauj Krishna and CKP25 Varieties most suited for Bihar

19. Impact of this ATMA Model of Extension on Crop Diversification and Farm Incomes(Average changes in production area and income in 28 project districts* between 1999-2004; IIM Lucknow data) • Horticultural Crops: 12  16% • Oil Seeds: 3  11% • Herbs and Medicinal Crops: 1  5% • Sericulture: 0  1% • Area planted to cereals declined: 55  47%, but yields increased 14% • During this period, average farm income increased 24% in project districts in contrast with only 5% in non-project districts *All India figures

20. Performance Indicators of ATMA Programme in Bihar (Rs./ Household/Year)

21. Conclusion: Key Elements of this New Extension Strategy • Refocus some research and extension resources to high-value crops/products, including market assessment • Decentralize extension planning and decision-making; begin by focusing on local and regional market opportunities. • Empowering Farmers—organize and train farmers so they can link to high-value markets;they must get organized to achieve economies of scale and to increase market power.

22. Reasons for Success • Farmer friendly approach to Extension • Partnership with Private Sector • ATMA Single Window delivery point for Technology. • Diversification dictated by market demand only. • Judicious Use of Mass media. • R-E-F-M linkages strengthened with primary focus on farmer. • Revitalizing the farmers through capacity building, • Using farmers and private entrepreneurs as Extension Agents. • Group focus in all the interventions. • Effective use of NGO’s, & private sector. • Sustainability given due importance, with cost sharing being the key word in most of the interventions.

23. ATMA Model : LessonsLearnt • Autonomy, financial flexibility and direct funding resulted in better outcome. • Better coordination, Convergence, pooling of resources and integrated delivery of demand driven extension. • Priority settings through the farmers involvement (SREP , GB and FIAC). • Strong Research-Extension-Farmer-Market (R-E-F-M) Linkage. • ATMA an effective platform for Public-Private-Partnership. • SREP as a tool for bottom-up planning • Capacity building through need-based trainings, exposure visits, demonstrations, etc.

24. THANKS