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Revitalizing Agriculture in Andhra Pradesh: Role of High-Value Commodities

Presentation. Andhra Pradesh: a snapshotAgriculture sector: a silent crisisMapping of High-Value Commodities (HVCs)Policy interventionsConclusions. Andhra Pradesh: A Snapshot. Andhra Pradesh, India. Andhra Pradesh: fast facts. Population: 76 millionRural population: 63%Agriculture GDP: 25%3 agroclimates: dry, semi-arid, and coastalIrrigated area: 45%Front-runner in macro-economic reformsWorld Bank:

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Revitalizing Agriculture in Andhra Pradesh: Role of High-Value Commodities

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    1. Revitalizing Agriculture in Andhra Pradesh: Role of High-Value Commodities P. Parthasarathy Rao ICRISAT IFPRI-ICRISAT Collaborative Project July, 2005

    2. Presentation Andhra Pradesh: a snapshot Agriculture sector: a silent crisis Mapping of High-Value Commodities (HVCs) Policy interventions Conclusions

    3. Andhra Pradesh: A Snapshot

    5. Andhra Pradesh: fast facts Population: 76 million Rural population: 63% Agriculture GDP: 25% 3 agroclimates: dry, semi-arid, and coastal Irrigated area: 45% Front-runner in macro-economic reforms World Bank: “Andhra Pradesh is a leader in economic reforms but not yet in economic growth”

    6. Andhra Pradesh is catching up with other developed states

    7. Agriculture Sector: A Silent Crisis

    8. Andhra Pradesh farming sector: Facets of the crisis Yield stagnation in traditional crops Food self-sufficiency achieved Accounts for 35% of rice procurement in India Relentless pressure on natural resources Declining water tables Unsustainable rice cropping Excessive use of inputs Fertilizers, pesticides, water, electricity Newer pressures from trade liberalization Prices, quality, sanitary and phytosanitary (SPS) measures Rising rural unemployment Decline in rural per capita incomes Inadequate access to formal credit Poor rural and marketing infrastructure Profound disquiet in rural areas AP has dubious distinction of highest farmer suicides High levels of out-migration to urban areas Highest incidence of child labor Chandra Babu Naidu’s Government voted out of power in 2004

    11. Mapping HVCs

    20. HVCs: Challenging policy terrain Marketing Domestic Export Processing Contract farming Case study: Gherkins Credit Infrastructure

    27. Policy Interventions

    28. Pro-HVC policy interventions Pricing water Building efficient marketing networks Implement Model Marketing Act Dismantling government monopoly Increasing investments in infrastructure Roads, cold storage, bulk coolers Foster improved linkages between rural-urban markets Emphasizing vertical integration thru’ contract farming Increase enforceability Harness private sector innovations in food processing and marketing Adding value thru’ processing Simplify procedures for setting up food processing industries Enhancing access to formal credit Expand crop/rainfall insurance schemes Enabling public-private partnerships Extension

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