Secondary agriculture class i

Introduction to secondary agriculture

1. Secondary Agriculture Dr. Ramappa , K.B

2. Introduction The  secondary sector of the economy  includes those economic sectors that produce a finished, usable product: production  and construction . Secondary sector takes the output of the primary sector to produce finished goods suitable for other businesses/domestic usage. Examples of secondary agriculture – vitamins from grains, - oil from rice bran, starched sugar from corn, - milk and protein from soybean, industrial chemicals and bio-fuel from sugarcane and ligno -cellulosic biomass, - fiber board from rice straw, high value animal by products, Medicinal plants and herbal products not yet fully capitalized in India .

3. Background India is going through a economic and social transformation – transit from An agriculture based economy to products and service based economy Move towards knowledge based economy Challenges Agril is the foundation of Indian economy (65 to 70% population) Not even basic necessities available in rural areas (rural infrastructure) Widening gap between rural and urban population

4. The Context (1) Remarkable journey for India – net importer to self-reliance. The country has adopted various institutional interventions, technology and policy regimes as the key drivers to guide the agril . Sector Pre-green revolution period (1960-69) – the sector GR was 0.7% with policy support of land reforms & the development of irrigation Green revolution period (1968-76)- adoption of technology particularly HYVs and chemical fertilizers with the continued thrust on irrigation and extenstion GR was 2.26%

5. The Context (2) GR was comparatively higher during the periods of wider technology dissemination (1975-83) – 2.34%. Diversification (1988-95) – 3.21% Mainly because of Institutional credit, subsidised input supply & incentive schemes

6. The Context (3) The same GR could not sustained in the post reform period (1995-2005) @ 2.31% bcz of Inefficient input use Degradation of productive resources and Drought Recent initiatives of Govt (2004-11) like RKVY, NFSM, NHM have given significant turnaround by increasing GR to 3.31%

7. The Context (4) The last two decades witnessed different scenario with the liberalised economy In terms of international competition, better market competitiveness, and efficiency There was a significant shift from Agricultural production from traditional field crops to horticulture and commercial crops Non-land based activities (livestock/ fisheries) High Value Agriculture (HVA) - 1981-2009 achieved 4% GR & non-HVA achieved 2.3% Debate on FDI in organised retailing

8. The Context (4) Farm economy transforming Access to education to an opportunity of off-farm employment Younger generation with education and expertise prefer to pursue employment in the non-farm sector Reducing and variable farm income is found to be the driver of this transformation

9. Need for Secondary Agriculture Can add two to three fold value to primary agriculture and thus can invigorate both rural and urban economy – as the capacity of rural people to absorb goods & services increases. Farm size has dwindled to a below the level that can provide subsistence to a farmer – matter of serious concern – consolidation of farms may be the solution – help in increasing productivity To build world-class agro industries, many of the needed technologies might have to be imported and adapted Completely deregulate the agriculture industry except with regard to food safety.

10. Major Constraints in building Agro-Industries in India Lack of coordination between the R&D institutes (ICAR, CSIR and DBT) and the agro-industries; Restricted flow of agricultural produce from one state to another; Poor    market   linkages   for   processed products for getting the price advantage; Lack   of   sufficient   credit   availability, administrative    encouragement,    policy support, etc.; Almost non-existent agri -venture capital in the country; Most important, the poor infrastructure - essentially ,   the   roads   and   transport systems   to   provide   connectivity   with urban markets, and the lack of power for cold storage systems and processing of perishable products .

11. Statement by ICAR, DG "The secondary agriculture would be providing value addition to agricultural products, creating facilities for primary processing and stress management in agriculture. The 12th plan will see the shift from primary to secondary agriculture," S Ayyappan , Director General, Indian Council for Agricultural Research

12. Government Initiatives (1) A Technical Advisory Committee on Secondary Agriculture (TACSA) was constituted in 2006 by the Planning Commission headed by Prof. Verma . To address various constraints, opportunities and potential for building world class secondary agriculture industries in India. Examined 5 Ws (What, Why, Who, When and Where) as well as making attempts at “How” with a few examples Proposed $2 billion investment by GoI

13. Government Initiatives (2) Thoroughly analyzed each sector that SA is most likely affect; identified the current level of activities in each of these sectors in India; Evaluated the quality and value of many SA products currently made in each sector in comparison with the international demands Evaluated current technologies being used by Indian industries Suggested some technology solutions available to improve current industries Identified potential financial solutions and the willingness of the key states to foster such development

14. Government Initiatives (3) Identified impediments to launching a given industry in particular area in India; Evaluated the cost of solving the problem in each sector and the cost of not doing so Evaluated the impact of few such industries on Indian economy in the next 10-15 years, Estimated the level of activities created by such industries. Evaluated the impact of the SA revolution on rural economic development. Suggested a vehicle to implement proposed changes both at the government level and at the rural level where the industries must be located

15. Secondary agriculture, driving the growth of primary agriculture is visualised asunder : Planned withdrawal of working force from primary sector by establishing appropriate linkages with secondary agricultural sector. Encash the changing demand towards value added products by promoting diversification of primary agriculture so that farmers improve their production base. Building strong demand through value addition and promotion for underutilised crops such as minor millets, medicinal and aromatic plants and crop by-products so that farmers realise higher returns. Encouraging rural industrialisation so that the demand for primary produce is increased as they are used as raw material by the industry and the required quality inputs are made available to improve primary agriculture. Improve the supply chain management so that the transaction cost is reduced and market is expanded for primary agricultural commodities. Develop human resource to undertake research and extension relating to secondary agriculture so that its expansion and increased efficiency will benefit the primary sector.