Remarks On Rural Credit For Globalising Farmers

I happened to be the chair for the technical session on 'Rural Credit for Globalising Farmers' at the 26th National Conference on Agricultural Marketing, organised by Indian Society of Agricultural Marketing (ISAM), Nagpur and Gokhale Institute of Politics and Economics (GIPE), Pune held at Yashanvantrao Chavan Academy of Development Administration (YASHADA), Pune, during 20-22 December 2012. The following are my remarks for the session.

Credit is an important requirement for the farmers, who are risk-taking entrepreneurs. This will help them take up usage of inputs or a technological innovation that they perceive or are made to perceive is beneficial for them. Of course, as an aside, one can state that many technological innovations (including the green revolution) are taken up because of a subsidy component that distorts the actual prices as well as perceptions. Besides, the mindless transfer of such technology meant for certain agro-climatic conditions or to certain cropping patterns to all scenarios may not be appropriate. 

Taking a clue from the Presidential address by Professor V. M. Rao, one may also add that the reaction to the food non-availability crisis in the mid 1960s was an emergency requirement; the danger was to have converted such an action to be part of the normal design. This manner of functioning was inefficient in the sense that it distorted prices but it was also iniquitous by focusing on some well-endowed regions. Unfortunately, its inappropriate application also had adverse implications for such well-endowed regions down the line.

Another point that I would like to stress to this august house is on some important but distinct connotations that the word 'market' can have. For instance, market is a place where the farmer (as also you and I) have the freedom and right to buy and sell.

We also at times imply by market to a state where the price is efficient. This second usage draws from the classic condition that in a market there are large number of buyers and sellers, and hence, none of them can influence the price to suit their own vested interest. Such a market clearing price at equilibrium is efficient and fair. 

A third and an increasingly important usage of the market in a globalising context is where efficiency is measured through higher margins (note the difference in the meaning of efficiency under an equilibrium price). It is this latter logic that is invoked in many policy debates and decisions including the FDI in retail.

One has no problems with any of the meanings ascribed to the word, but it is problematic if one uses this word interchangeably. In particular, the third usage is argued to give a fair price as also freedom and space to transact. We should be clear about these distinctions and use them appropriately. 

Having said these, one would now get back to the presentations made at Technical session 1 on 'Rural Credit for Globalising Farmers' and some recommendation that emanate out of these deliberations. Nine papers were presented. The presentations are:

• 'Warehousing Receipt Finance of Agriculture Commodities in Andhra Pradesh' by P. Kanaka Durga (Anil Kumar and Aldas Janaiah)
• 'A Comparative Study of Cultivating Rose in Open Field and Greenhouse as Cut Flowers - An Empirical Study' by (Sujata Majumdar and) Debabrata Lahiri
• 'Wheat Growers in Ludhiana District of Punjab - Asset Positions, Credit Requirements and its Sources' by Veena Goel (and Gurpreet Kaur)
• 'Development of Agricultral Marketing in India' by S. K. Dhage
• 'Measuring Inclusiveness of Agriculture Credit Flow in India' by Nirupam Mehrotra
• 'Agricultural Credit System in the Tribal Belt of Odisha: The Case of Maize Production' by Brajaraja Mishra
• 'Emerging Trends and Policy Options in Agriculture - Production, Marketing and Credit' by Samir Samantara
• 'Rural Credit for Globalizing Farmers' by Sangeet Kumar
• 'Weak Penetration of Institutional Credit and Farmers' Suicides in Maharashtra' by Dnyandev Talule

From the above nine presentation, five were based on primary field based work that enriched the deliberations because of the variety of contexts (warehousing receipts, rose cultivation, wheat growers, tribal farmers cultivating maize, and farmers' suicides) as well as their spread across the country (Andhra Pradesh, West Bengal, Punjab, Odisha and Maharashtra), two were based on secondary data on credit raising policy issues with one of them looking into some measurement issues of inequality, and two were written in the style of general essays.

Some recommendations coming from the presentations as also the deliberations are as follows:

• The farmers usage of warehouse storage facility is constrained by a legitimate fear that the quality of the stored produce would deteriorate. This calls for improving the quality of management, quality of service, efficiency of handling and safety of the stored goods. 
• Uncertainty in prices and the risks therein brought into discussion a possible reliance on hedging through futures market but it also raised further risks of transactions through this virtual medium that has nothing to do with physical transactions.
• Medium and large farmers appear to be primarily accessing the storage services whereas the need for safe and efficient storing to escape distressed sale of their produce is greater for the small and marginal farmers. Efforts need to be made to make storage viable for the latter.
• Unlike greenhouses farmers, the open field farmers producing cut rose did not have access to formal credit. The banks in this region may come forward to give them loans for setting up greenhouse structures and also for producing under open field conditions.
• The study of wheat growers indicate that small and marginal farmers are constrained in the production process (as they have to rely on the market for renting out farm machinery and equipment increasing the cost of production) and selling of produce (during lean season at a lower price). This reiterates our earlier point of the greater relevance of warehouse facilities for small and marginal farmers. It also points out that they may need greater operational credit because of higher cost of production. Its feasibility will depend on the returns from cultivation for these farmers.
• Interlocking of credit with input and output markets had adverse implications on tribal farmers' income. Alternative forms of agriculture that could reduce dependence on market-based inputs while not compromising on the production (low external input sustainable agriculture - LEISA) and facilitate marketing of the same at a premium price should be explored.
• Farmers' suicides are a failure of hope as also a symptom of the crisis in Indian agriculture. There seems to be a greater debt burden for such households when compared with non-suicide households. The debt burden for such households also seems to be higher from non-institutional sources. This is worrying because the study conducted in early 2012 (which is also a drought year) seems to have negated the benefits from debt-waiver and increased the riskiness with the negative returns. It does raise the question on usage of technology-centric (Bt seeds) and financial-centric (debt waiver) solutions while not giving much focus on the real world problem (livelihood crisis). To ensure success of debt waiver there should have been focus on improving incomes while not increasing the risks, particularly in a bad year. This reiterates the relevance of LEISA indicated above.
• The failure of seeds due to spuriousness or any other reason calls for compensating the farmers' income and not just the seed cost by the supplier.
• Improving institutional access to credit in a timely manner and even clubbing the same with non-credit inputs could be an alternative. Formation of Self-help Groups (SHGs) and linking them to banks could also help. In short, there is a case for promotion of groups of borrowers (produce based, service based, caste based, village based, and cluster based that are either vertically or horizontally integrated).
• There is also a case to take credit beyond production and link it with post-harvest operations like sorting, grading, packaging and marketing and this can be made to groups, as indicated above.
• Some of the eastern states share of agricultural credit is lower than their share of area under cultivation or irrigation. These are also the states where the small and marginal farmers get a lower share of credit compared to their share of area. If focusing on East is a concern for policy planners to increase agricultural production then the credit disbursement in these areas need to change. Some thought also needs to be given on the appropriate technology.

(This is a slightly revised version of the presentation made at the plenary session. While acknowledging that I used my liberty as a chair of the session to represent the views indicated at the session and take responsibility for the same. However, if something has been left out, it was not intentional.  I am thankful to Abhay Tilak, Rapporteur for the session, for sharing his inputs and the paper presenters and all those present there for a lively discussion.)

IGIDR in her silver jubilee

1 December 2012

Today, IGIDR
 is decked in her bridal finery,
To begin with pomp and grandeur
 her silver jubilee show.

Current and some past Directors
 are all in their territory,
With a few former RBI Governors
 and the incumbent one in tow.

Multitude of dignitaries
 are lined up for their wizardry,
In attendance are invitees
 who listen and wonder in wow.

Damsel with a Pitcher

'Kalasi Kakhei Rupasi' by Sabita Pradhan
(translated by Srijit Mishra)

[This is a beautiful poem in Odia (Oriya). It is difficult to translate, but ...]

'Damsel with a Pitcher'

A damsel with a pitcher on her waist, 

walks daintily away with soft steps.

Her girdle-like waist chain and anklet,

swing to a song that the twain makes.

Slow and steady comes the lazy wind,

to give her body a gentle caress.

The autumn moon hidden behind the cloud(s),

gives her stalking stealthy glances.



[Note: The 's' in clouds could be silent to rhyme with wind. Note on 14 September 2012: The poet's use of words  and phrases is powerful and gives a vivid visualization of rural Odissa (Orissa), or India. Some words that are normally not used are kati referring to waist, kinkini referring to an ornament worn around the waist. Bhodua means the month of bhadrab, after shravan; the beginning of the season of sarata/sharad, ie, late monsoon/early autumn. Thus, bhoduara chanda is translated to autumn moon. Earlier, I had used 'autumn clouds'.]

Transliteration with English alphabets would be as follows

Kakhare kalasi kakhai rupasi

Pada chapi jebe chale.

Kaatire Kinkini Padare paunji

Runu jhunu gita bole.

Alasi pabana thiri thiri asi

Dehaku ta' chuin jae.

Bouda bhitaru bhoduara chanda

Chorai chorai chahen.

       

See another translation

For Mother (Bou), Original by Dillip Balabantaray

Also see two secular odia poems written using English transliteration.

He Anandamya by Madhusudhan Rao

Ahe Dayamaya by Ramkrushna Nanda 

For Mother (Bou)

I happened to read this beautiful poem in Odia (Oriya) by Shri Dillip Balabantaray. I attempt to translate it in English. Your suggestions to refine it would be appreciated. The translation is as follows.


For Mother (Bou*)
by Dillip Balabantaray
(translated by Srijit Mishra)

After I left your lap I saw
That world of truth and deceit.
After I left your hand I realized
That life of laughter and tears.

After I heard your voice I understood
That no voice is sweeter than thee.
After I felt your touch I sensed
That feeling of all pervasiveness.

After I tugged your dress# I realized
That relevance of your bosom.
After I touched your feet I knew
That you are my living GOD!

After you, life and death is the same
That life moves into nothingness.
After writing about you I wonder
That  there are no words to express.

(* A general word for mother in India is Maa and its variants like Amma, Aai and like that and globally you will have variants like Mom, Meter, Mother, but it is perhaps in Odia (Oriya) that many people use Bou - the term is very Odisha (Orissa) specific. Of course many people do use Maa also. But the poet has used the typical Odia term Bou in this poem.
# Kanhi in Odia, equivalent in Hindi is perhaps pallu.)

Corrections/thoughts on 31 August 2012
Para 2, line 2, deleted 'other' from 'no other voice'.
Para 3, line 2, replaced 'the bosom' with 'your bosom'.
Last line: at one time I was thinking of replacing the last line with '... the world is devoid of words', but left it as it is from my first attempt.



Those of you interested in some other Odia poems may see my earlier blogposts on:

Mashusudhan Rao's He ananadamaya koti bhubana palaka and

Ramakrushna Nanda's Ahe Dayama

Also see another translation of mine

Kalasi Kakhei Rupasi (Damsel with a Pitcher) by Sabita Pradhan

Satyamev Jayate on Toxic Food: Some Concerns

The eighth episode of Satyamev Jayate on toxic food was one where I saw many familiar faces Ramanjanayelu and Kavitha. In the background, one also saw Mr Raidu who has been looking into Community Managed Sustainable Agriculture of Andhra Pradesh. The two organisations selected for receiving funds donated by people are Ramanjanayelu's Centre for Sustainable Agriculture and Umendra Datt's Kheti Virasat Mission. I had met them, a couple of weeks ago at a Bt review meeting (see press note and a write-up along with a comment from the other perspective in Down to Earth). I use this to write a couple of related things.

Both pesticides production and organic exports have good business propositions. Moral and ethical concerns are outside the realm of these decisions. Hence, those into agri-business can enter into both the domains and there is no contradiction in that.

The Non Pesticidal Management (NPM) movement of Andhra Pradesh is to make the cultivation less costly by largely using locally available resources and by following a list of practices without applying pesticides.  This does lead to the product being organic, but we keep the business of labelling it aside so as to keep the farmer away from the associated costs and risks. It also keeps the onus of contamination from groundwater, air or through any other means outside the purview of the farmer. Of course, they are equally important and need to be appropriately dealt with, but it definitely does not call for reprimanding the farmer.

A related point about the success of Andhra Pradesh is the existence of institutions of women through Self-help Groups (SHGs) of women that have been federated to village, mandal and district level community based organisations. These have been indicated in my co-authored paper Persistence of Crisis in Indian Agriculture: Need for Technological and Institutional Alternatives, in Dilip M. Nachane edited India Development Report 2011, Oxford University Press, New Delhi, pp.48-58, see pre print version. This institution building of farmers is relevant because in its absence their bargaining power against large market players become weak - these players could either be the sellers of external inputs or the buyers of the products.

The issue of farmers' suicides came into the discussion. I have written about it elsewhere (see Suicides of Farmers in Maharashtra with links to the report as also the executive summary). One thing which is relevant for the current purpose is that pesticide consumption continues to be the single largest method of committing suicide by farmers. This assumes importance because many pesticides that are banned elsewhere in the world are still available and that there are no regulatory mechanism about control their sale or even their usage. Globally it has been seen that checks and controls on fatal methods of committing self-harm have led to reduction of incidences. However, such controls will not address the Agrarian Crisis in India, but will reduce the loss of lives. 

An aspect related to farmers suicides among cotton farmers is the use of Bt seeds, which have become popular since its legal introduction about a decade ago. Their large scale usage and increment in production is cited as success by some, but in the absence of appropriate counterfactuals nothing much can be said about their yield increases. Today, most of the cotton farmers who commit suicides would have used Bt seeds, and hence, these seeds become an associated risk factor or one can at least state that their usage has not reduced such risks. Based on a study comparing bad or drought years, one can state that in some situations Bt has added to the risk of the farmer (see To Bt or Not to Bt, a co-authored working paper of mine).

In the Bt review meeting, mentioned earlier, one speaker compared the success of Bt with that of mobile phones. The analogy begins with both being new technological developments that were rarely used even a decade ago and today both are very popular. Fair enough!

We would  like to bring in some other dimensions of comparison. Usage of mobile phones, which were quite costly to begin with have become cheaper, even much cheaper than the landline and the (nominal) prices of the latter has not increased while Bt seeds continue to be costlier than the traditional alternative. The reduction in prices in mobiles was because of an introduction of  competition by bringing in many players whereas in Bt seeds the intellectual property right is owned by a single company who charge a royalty for it at a flat rate for each packet of seed and thereby increasing the cost. Mobile phones have facilitated communication and in that process access to knowledge, but use of Bt seeds brought in a new paradigm leading to deskilling of knowledge among farmers. An aspect of commonality, as indicated by concerns raised by some, is the possibility of health risk arising out of the radiation in mobile technology (more so from towers) as also from the toxicity in Bt plants.

Before I forget, those who want to sign the petition to the Union Agriculture Minister on India for Safe Food may sign and send the petition here.

For some of my other related writings see:

The farmers strain

Pesticide usage in India 

Day 28 of farmers marching across India to save agriculture 

Day 35 of farmers march coincides with Obama's visit to India 

Kisan swaraj yatra travels through Eastern India

Kisan swaraj yatra in North India

Options and priorities for agriculture in Indian on the eve of the 12th five year plan

Size-class and returns to cultivation in India

Hunger ethics and the right to food

Daughters are precious: first episode of Satyamev Jayate
Four episodes of Satyamev Jayate

Four Episodes of Satyamev Jayate

Satyamev Jayate has now completed four episodes on female foeticide,  child sexual abuse, dowry and medical malpractice and each of them had four haunting songs. I still keep humming O Ri Chiraiya from the first episode, and then you have Dheere Dheere, Haule Haule from the second, Rupaiyya! from the third and Naav from the fourth. Some of the lyrics are beautiful - would like them to be available without the video link. 

All these are very touching and relevant social issues. Some social scientists may say that these are known to us, but one should appreciate the fact that despite the knowledge of those working in related themes there are deep-rooted myths among people about our understanding of society and ourselves and hopefully the programme is able to address this to a larger section of the society. Hats off to Aamir Khan!

I would like to state a couple of things about the fourth episode on medical malpractice. What was shocking to me was that the current head of the Medical Council of India was unaware that a medical student has to pay 60 lakh rupees in cash to get a seat. If policy makers and decision makers are unaware of facts that are common knowledge then it is high time that they get out of their cocoon - a creation of the system that believes in protocols and hierarchies and umpteen bureaucratic layers so that the information that you have is anything, but the truth.

While the programme was discussing on some negative aspects, particularly linked with private care givers (and also because of the absence of adequate public care facilities), I thought that the programme should highlight some positive examples set by private practitioners like Dr Devi Shetty's Narayana Hrudaayalaya; lo and behold Dr Shetty was himself there.  Need I say more.

Some related blogposts of mine are:

Public Health in India

Why Girls Grow up with Girls?

Detecting Cervical Cancer

Women Power

Emergence of a New Antibiotic Resistance

Daughters are Precious: First Episode of Satyamev Jayate

 

   

Daughters are Precious: First Episode of Satyamev Jayate

The much awaited Satyamev Jayate being produced and hosted by Aamir Khan aired its first episode Daughters are precious. This did remind one of Amartya Sen's paper on 'Missing Women - revisited' (BMJ, 2003). The show brought into focus a relevant social problem of female foeticide and declining sex ratio in India (see Figure 1 below). For this as also other information given here we rely on the Gender Composition of the Population, Census of of India.

Figure 1: Sex Ratio (0-6 Years) for India.
Source: Statement 16, Gender Composition of the Population

Further, as seen from the Distribution of States/Union Territories by Sex Ratio for 0-6 Years in 2001 and 2011 given in Table 1, this decline in 0-6 Years, is across the board.

Table 1: Distribution of States/Union Territories by Sex Ratio for 0-6 Years in 2001 and 2011.
Source: Statement 17, Gender Composition of the Population

The Sex Ratio for 0-6 years across states for 2001 and 2011 are also indicated in Maps 1a and 1b below. In the Maps, red colour indicates lower sex ratio and as one moves from red to light brown to light yellow to light green to dark green one has higher sex ratios. The colours seem to have shifted towards red depicting lower child sex ratios in 2011.

Map 1: Child Sex Ratio across States, 2001 (left) and 2011 (right).
Source: Maps 12 and 13, Gender Composition of the Population

Some of the facts (going against some popular myths) that the show unraveled is that:

• Such incidences are higher in urban not rural
• Such incidences are higher among wealthier rather than the poor
• Such incidences are higher among the educated rather than the illiterate 

The show also pointed out the implication of a world without girls. In particular, how the unmarried men are a nuisance for others adversely affecting safety and security of the population in general and the girls in particular. It ended with a positive note by pointing out a success story within the country of how the district of Nawanshahr in Punjab turned the tied.

Most importantly, the show called for an appeal to people like you and me to take a call on whether the Government of Rajasthan should come up with a fast track court to try all cases spread across the state that were exposed in a single sting operation. If you agree then SMS Y for Yes or N for No to 5782711. Now, it is for you and me to take up this Satyamev Jayate.

Those interested may have a peek at my related blog on Why Girls Grow Up With Girls? True, this needs further probing, which I will take up soon.

8 May 2012:

For an alternative interpretation see, Does the truth prevail in Aamir Khan’s Satyameva Jayate? by Satyen K. Bordoloi.

For an inspired take from this blog see, Should Aamir Khan promote rice, or water? by Pramit Bhattacharya. Also see, Inspiration, not copying by KV Lakshmana for the controversy around the programme's theme song.

For one of its first impacts see, Licenses of 64 nursing homes suspended.

For a forceful article based on National Family Health Survey data of 1999-99 see, Sex-selective abortions in India by F. Arnold, S. Kishor and T. K. Roy in December 2002 issue of Population and Development Review.

For an article based on Census 2001 see, The Missing Girl Child, by  Mahendra K Premi in 26 May 2001 issue of the Economic and Political Weekly.

Also see, Missing Women - Revisited (4 December 2003) and Missing Women (7 March 1992) by Amartya Sen in BMJ (earlier known as British Medical Journal).

RRA Network Internship Programme

The RRA Network recently launched the ResRA (Re-searching Rainfed Agriculture) group, as part of its strategic commitment to knowledge for sustainable and equitable development of rainfed areas.The ResRA group is facilitating the RRA Network Internship Programme.

Summer Intern with RRA Network

The internship programme has been conceived with the objective of creating learning opportunities that will catalyse the interest, creativity and commitment of students pursuing their Bachelors and Masters degree from diverse disciplines to acquire and use their knowledge and skills for understanding of rainfed areas. The RRA Network can support up to 12 interns this summer.

More information about the internship programme can be found at on the network homepage and the particulars on summer intern here.

Prospective applicants may also benefit from the following research questions while preparing a one-page write-up on expectation and motivation.

No.	Node	Key Research Hypotheses and Questions in Rainfed Agriculture
1	WATER	The Argument: Water management in rainfed agriculture should build the perspective of “water-as-protection” away from that of intensive exploitation of water resources. The key task is to operationalise the concept of Rainfall Use Efficiency (RUE - productivity per unit of rainfall) in management of both surface and groundwater. Key Hypotheses: Protective irrigation can ·         lead to x-fold increase in productivity; ·         lead to significantly increased income; and  ·         lead to enhanced food security for small and marginal farmers Key Questions: ·         What are the key methods available for management of soil moisture and providing protective to maximise rainfall use efficiency in rainfed agriculture? ·         What is the incentive structure required for soil moisture management, protective irrigation and operationalisation of the concept of RUE? ·         What are the key challenges of sustainable management of groundwater resources from the perspective of water-as-protection in rainfed areas? ·         What is the impact of a) soil moisture management; b) groundwater management and c) protective irrigation on o   soil moisture availability? o   plant productivity? o   household incomes? ·         What is the unit cost and investment required in a) soil moisture management; b) groundwater management and c) protective irrigation? ·         Which are the ongoing programmes through which the programme of water management in rainfed areas could be upscaled to mobilise public investment? What are the necessary changes in the programme architecture of ongoing programmes required to promote such upscaling?
2	SOILS	The Argument: The approach to soil fertility has to move away from adding nutrients to the soil to maintaining soil health, reducing soil erosion and enhancing the water holding capacity of soils. Key Hypotheses: ·         Addition of organic matter @2 tonnes per acre per year can enhance soil health, ensure crop productivity, reduce cost of cultivation and increase farm incomes. ·         Though farmers realise the importance of soil organic matter, there are some systemic bottlenecks (financial, labour, natural resource based) that need to be overcome for wide adoption of such practices. These bottlenecks can be overcome through public investment and capacity building of communities.  Key Questions: ·         What are the ways to add bulk organic matter to soil under different rainfed conditions? Does this norm of 2 tonnes per acre per year vary in different rainfed typologies? ·         What is the structure of incentives and key areas of public investment essential for facilitating application of organic matter to soils to enhance soil productivity? ·         What is the impact of addition of organic matter to soil on: o   soil properties (physical, chemical and hydrological) o   crop productivity o   cost of inputs o   farm incomes ·         What are the best uses of organic amendments to cropping systems by farmers to improve soil nutrients and water holding capacities and thereby assist in restoring agro-ecosystems ·         Which are the ongoing programmes through which the soil productivity enhancement programmes could be upscaled? What are the necessary changes in the programme architecture of ongoing programmes required to promote such upscaling?
3	SEED SYSTEMS	The Argument: Seed security in rainfed agriculture requires that a locally managed, decentralised seed system is place to provide timely supply of quality seeds of a wide range of seed options in sufficient quantities. Key Hypotheses: ·         The absence of timely availability of adequate quantities of contingent seeds is key factor responsible for the uncertainty and poor returns inherent in rainfed farming ·         Farmers use hybrid seeds because of the non-availability of non-hybrid seeds. If non-hybrid seeds are provided, then farmers in rainfed areas would prefer these over hybrids on the consideration of enhanced seed security through farmer-saved seeds. ·         A considerable amount of the subsidy provided on seeds in India goes to the corporate sector and not to the farmers. Key Questions: ·         What are the available methods of ensuring seed security in rainfed agriculture through locally managed, decentralised seed systems? ·         What is the structure of incentives required for local communities to develop their own seed storage and distribution systems? ·         How do we assess the impact of a locally managed, decentralised seed system on o   timely availability of seeds o   quality of seeds o   farm productivity o   farm incomes ·         How does a locally managed, decentralised seed system compare with current system of seeds in terms of the cost of providing seeds to the farmers? ·         Which are the ongoing programmes through which the soil productivity enhancement programmes could be upscaled? What are the necessary changes in the programme architecture of ongoing programmes required to promote such upscaling?
4	LAND USE & MILLETS	The Argument: A diversified cropping system, in which millets play a crucial role, is essential for household food security and enhancement of the resilience of rainfed agriculture to climate-related vulnerability. Farm forestry and tree crops play a critical role in this diversified farming system.    Key Hypotheses: ·         The easy availability of rice and wheat in the PDS is responsible for the reduction in acreage devoted to millets. ·         The difficulties of processing millets are responsible for lower preference of millets compared with rice and wheat. ·         A 25% allocation of millets to the PDS basket will lead to a xxx% increase in acreage under millets; yyy% reduction in agricultural water consumption, and higher nutrition security. ·         Devoting 25% of the grains procured for mid-day meals scheme to millets will lead to a xxx% increase in acreage under millets; and yyy% reduction in agricultural water consumption and higher nutrional security. ·         Farm forestry and vegetation of “wastelands” and commons is vital for poverty reduction in rainfed areas. Key Questions: ·         What are the millet-based cropping systems available for the different natural resource configurations in rainfed agriculture? ·         Which are the prominent millet growing regions in rainfed India? What is the millets share (percentage) in the household food grain consumption across districts at present, 10, 20 years back? ·         Why has the area under millets cultivation declined in these regions? ·         What is the incentive price that stimulates household demand for millets? Are there any other drivers, say, for e.g., value added products? ·         What are the types of incentives (price, subsidy, public investment) needed to promote a millets-based cropping system? ·         Evaluate INSIMP program –Does stand alone productivity enhancement activities enhance millets area? ·         What is the impact of millets cultivation on rainfed agriculture in terms of o   soil fertility o   food security o   climate resilience ·         What is the economics of millets cultivation in terms of per hectare costs, returns and profitability? How can this system be compared to a conventional irrigated cropping system? ·         What are the macro-economic implications of a 10-25% shift towards millets in the public funded and food entitlements-based programmes (PDS, ICDS, MDMS etc.) – implications in terms of water use, saving of electricity, fertiliser consumption, quality of land and household nutrition levels? ·         Which species of trees need to be promoted for wasteland afforestation and revegetation of common land? ·         What is the role of contract farming in tree crops? What are the institutional mechanisms required for productive utilisation of the so-called wastelands or commons through community effort?
5	NO-PESTICIDE MANAGEMENT AGRICULTURE	The Argument: Sustainable crop management practices of NPM agriculture reduces cost of cultivation, enhances soil health and reduces chemical contamination of food and water. Key Hypotheses: ·         High premiums and uncertain availability are key factors that have served as bottlenecks to urban consumption of organic produce. ·         There exists a market for the NPM produce where the customers are willing to pay a 15% premium for NPM produce. ·         An NPM based Participatory Guarantee System and development of NPM label provide benefits of certification and market access to a large number of small and marginal farmers in rainfed areas who are “default organic” farmers.    Key Questions: ·         What are the locally appropriate and low cost plant protection technologies available for NPM agriculture? What is the type of research required to develop such technologies? ·         How can the farmers be incentivised to adopt the NPM agricultural practices? ·         What is the impact of NPM agriculture on o   Crop productivity (Is there a yield drop? For how many years?) o   Soil health o   Farm incomes o   Chemical contamination of food and water ·         What is the cost economics of an NPM based farming system compared to the conventional system? ·         How can NPM agriculture be upscaled through ongoing programmes like the RKVY? ·         Can pest management be converted to a public good through agro-advisories and public support systems?
6	LIVESTOCK SYSTEMS	The Argument: The existing livestock support systems for market access, animal healthcare and risk minimisation need to be re-designed to suit the specific needs of rainfed agriculture and to match the types of livestock holdings in such areas. Key Hypotheses: ·         Animal husbandry systems based on low-input, indigenous breeds are more suited to high-input, cross-bred cattle in rainfed areas. With adequate support, they can perform better than the cross-breds. ·         Poor delivery of animal health services is a key factor for high morbidity and mortality observed among livestock holdings in rainfed areas. ·         The small ruminant sector is the fastest growing animal husbandry sector in the country. ·         Small ruminant management, with high quality health care, provides a realistic route out of poverty. ·         Management of backyard poultry provides a route out of poverty Key Questions: ·         Identify components of a sustainable livestock system for rainfed areas. The system will have: o   Identification of varieties suitable to different contexts o   Creation of a strong water infrastructure and fodder base o   Creation of animal healthcare systems o   Creation of market structures for livestock products o   Risk minimisation through insurance o   Linking these activities with producer organisations and SHGs ·         What are the livestock mortality rates in rainfed areas and what is the status of livestock health care services? A quick survey across different states may bring out the basic issues on board statistically. This quick survey can be taken up by different field partner organisations. ·         How can we incentivise farmers to move towards locally appropriate forms of animal husbandry systems and practices? What are the key shifts required? ·          How do we incentivise backyard poultry as a sustainable activity? Analyse backyard poultry as a production system and its role in the overall poultry sector. ·         What is the impact of a well-functioning animal healthcare system on calf mortality, animal health and household incomes? Does insurance help households to minimise risk? ·         What is the scope to link livestock systems and essential services with ongoing public investment programmes like MGNREGA or NRLM? ·         What is the institutional back-up and support required for carrying forward livestock rearing (including small ruminants and backyard poultry) as an economic activity in rainfed areas? What are the institutional models available?
7	RAINFED FISHERIES	The Argument: Fisheries and acquaculture are significant livelihood activities in rainfed areas. The existing fisheries support systems need to be adapted and modified to take care of the specific needs of rainfed fisheries. Key Hypotheses: ·         The non-availability of fish fry is a key bottleneck to making inland fisheries sustainable and profitable. ·         Institutional reform is likely to be a key factor in transforming the viability of inland fisheries. Key Questions: ·         What are the existing methods and technologies of rainfed fish production? How can this system be made more productive? ·         What are the existing management systems for rainfed fisheries? How can the rights of the landless households be recognised and incorporated in rainfed fisheries? ·         What are the incentives required for farmers to take up fisheries as an income generating activity in rainfed areas? What is the nature of public investment support required for this? ·         Examine the economics of sustainable fisheries development in rainfed agriculture. How does this cost and returns compare with other forms of fisheries development? ·         How can a programme of rainfed fisheries be linked to and upscaled through the ongoing public investment programmes?
8	FARM MECHANISATION	The Argument: Locally appropriate farm mechanisation is essential in rainfed agriculture. Key Questions: ·         What are the implications of mechanization on agricultural labour and food security? Is the impact of mechanisation in rainfed areas disproportionately on women (i.e., the gender aspects of farm mechanisation)? ·         What is the macro-economic significance of animal draft power (for agriculture and transport of produce) in rainfed areas? What is its significance for small holders? ·         What would be the desired mechanisation for rainfed areas? ·         What are the institutional mechanisms available for farm mechanisaion for small holders ·         How can a locally appropriate farm mechanisation be incentivised?
9	SRI/SCI	The Argument: The System of Rice Intensification (SRI – or more generally, the System of Crop Intensification – SCI) marks a paradigm shift in management of land, labour, water and resources in a rainfed farming system. Key Hypotheses: ·         SRI/SCI is a sustainable crop management system appropriate for rainfed areas in terms of cost, returns, labour use and maintenance of soil health. ·         There are some financial and behavioural bottlenecks to full transition to SRI/SCI in rainfed areas, which can be overcome through carefully planned transitional investments.   Key Questions: ·         What are the key steps involved in establishing SRI as a viable option in rainfed areas? What are the innovations and experimentation required to further strengthen SRI? ·         What are the incentives and transitional investments necessary for farmers to move into SRI? How can they be structures to facilitate uptake by all classes of farmers? ·         What is the impact of SRI on crop yields, labour sue, input use and soil health? How does SRI enhance household incomes? ·         What is the economics of SRI? What are the major costs and returns? ·         How can SRI be integrated with MGNREGA and other such programmes? Can these programmes be structures in a way that they take care of the necessary transitional investments for a minimum number of years?
10	INSTITUTIONS	The Argument: Smallholder farmers in rainfed areas need to be supported by several key institutions (for production, marketing, finance, research & extension and capacity building services). These institutions are required to provide key technical services, increase market access of smallholders through aggregation and to undertake essential infrastructure investments in rainfed agriculture. Key Questions: ·         What are the appropriate forms of producer organisations needed to address specific issues of small and marginal farmers in rainfed areas? ·         What are the existing legal spaces available for developing producer organisaitons? How can these be utilised to foster new institutions of the people in rainfed areas? ·         What is the institutional framework required for marketing, finance, research and extension services in rainfed agriculture? What are the principal shortcomings of the existing institutional mechanisms and how could they be overcome? ·         Are SHG Institutions relevant for agricultural development? (not only for credit but also for value addition and service delivery)? ·         What are the principal capacity building needs of farmers and PRIs in  rainfed areas. What type of institutional framework  could be envisaged to meet these needs? ·         What is the performance, problems and potentials of producer companies as New Generation Co-operatives? Are they relevant for small holders? ·         What are the promotional (establishment) investments required to develop these producer organisations? ·         How the extension system to be redesigned? Is there a case for community based extension? ·         How the extension system to be redesigned? Is there a case for community based institutions for extension services? ·         What were the investments on farmers’ organisation so far? Why this has to be (whether it is) exclusively dependent on voluntary action / with donor funds? ·         How can the role of producer organisations be integrated with the implementation of programmes like NRLM?
11	Financial Services to the Poor	The Argument: The poor actively participate in financial markets to get a wide range of financial services. Easy and affordable access to a wide range of financial services is crucial for the survival of small and marginal farmers in rainfed areas. Key Hypotheses: ·         Small and marginal farmers actively participate in financial market – i.e., they can save, productively use credit and repay borrowed amount with interest and participate in insurance markets. ·         The reach of formal sources providing financial services such as banks, co-operatives, insurance companies etc., is low in rainfed areas. The small and marginal farmers, in particular, depend on a range of informal sources to meet their essential financial needs. ·          Institutional innovations like SHGs offer a range of financial products to the poor in rainfed areas which are suited to their needs and types of cash flow. Key Questions: ·         What are the key avenues available for financial saving by smallholder households in rainfed areas? Are the conventional saving products offered by the formal system adequate to meet their needs? Is there a case of devising new saving products to help smallholders in rainfed agriculture to build their savings and capital base? ·         What is the outreach of formal credit system and financial institutions in rainfed areas? What proportion of the household’s financial need to they meet? ·         What is the outreach of the new sources of credit like the SHGs in rainfed areas? What are the critical bottlenecks preventing their expansion? ·         Is there sufficient evidence of smallholder and landless labour exclusion from credit sector? If yes, what are the major reasons for this exclusion? ·         What is the reach and role of KCC and smart cards in rainfed areas? ·         What is the reach and role of the Warehouse Receipts System? Do banks in rainfed areas accept warehouse receipts as liquid assets? ·         What is the status of insurance services in rainfed areas? What are the critical bottlenecks preventing the adoption of insurance as a risk-distribution mechanism? ·         What is the reason for the poor performance of crop and livestock insurance in rainfed agriculture? Are options like weather-based crop insurance adequate as a risk cover mechanism?

Summer Intern with RRA Network