ARTICLE: #FARM TO #FORK methodology- IN BIG TICKET #RETAIL

article, , , , , , , , , , , , , , ,

Copyright@shravancharitymission

bigrel

 

 

 

 

BY KAMLESH TRIPATHI- FORMER GENERAL MANAGER MAHINDRA & MAHINDRA LTD., HEAD OPERATIONS MAHINDRA SHUBH LABH SERVICES LTD., HEAD AGRI BUSINESS AND ENGINES. ESCORTS LTD., VICE PRESIDENT RELIANCE RETAIL (FREELANCE JOURNALIST AND AUTHOR)

STATE OF PLAY

How would you like if it was written behind the packet of wheat flour that you just bought, ‘The contents were grown in the farm of Nanak Ram near Saras town, district Sehore, Madhya Pradesh.’ This is ‘traceability’ in agri terms. Sounds like a distant dream. But then the ‘big dream’ of the big ticket ‘Indian Retail.’ Connect the farm-gate to the fork. But before we get into this let us have a flavor of how the current system operates. Indian farming traditionally has been hooked to the mechanics of Artheyas (Grain merchants) Artheyas were created to help farmers with their documents while selling their crops in the mandis. These documents included entry of grain receipts in mandi registers, raising sales invoices and also tax challans. As most of them were illiterates and did not know how to read or write. This created a lifelong bond between the Artheyas and the farmers. The Artheyas initially started as the humble ombudsman assisting the farmers but gradually transformed into strong ‘gaddis’ at the influential grain market. But at the same time the profile of farmers continued to be the same or even declined comparatively, as the number of small and marginal farm holdings only increased and profits dwindled.

Today, a farmer depends on the artheyas for crop finance and finance in case of crop failure. He also treats the artheya as an assured market for his crop. And also depends on him for certain exigency finance which he may require in terms of marriage, illness, festivals thus forging a strong bond. And as compared to banks, their documentation is simple and not cumbersome and so a big convenience. But artheyas don’t forget their pound of flesh; and finance at high rate of interest and in some cases even beyond 24% per annum, and this hits farmer profitability. Even for the grain that the farmer sells through the artheyas, he charges commissions which is the major reason for grain, vegetable and even fruit prices becoming more than double from the farm level. Government in recent times has started warehouse receipt system; a type of finance that is available by mortgaging crop but then it entails a series of documentation.

hhkk

FARM TO FORK GENESIS

When the big ticket retail entered India the whole value chain from farm-gate to fork was examined by them in detail. What they found was, if the artheyas were removed from the system, and if they could buy grains, vegetables and even fruits directly from the farmers, a substantial value could be unlocked, saved and this could be shared amongst the three stakeholders; the farmer, retailer and the consumer. And, a lot of ground research has been done in this spectrum since then.

WAY FORWARD AND HOW DOES IT WORK ON THE GROUND:

Most big retailers have aggregation or stock points that store merchandise, from where it is brought to the retail floor, basis guidelines of minimum and daily stocking level. Some even have cold chains and reefer trucks for fruit and vegetable movement. Farmers who grow vegetables in the surrounding areas come with their seasonal vegetables and off load their stocks in these stock points basis number of plucking. These stocks are then sorted and graded for pricing by the company on a mutually agreed basis, after which it is taken in stock and payments are made once a week or in a fortnight to these regular suppliers. In case of onions and potatoes which have specific areas of production and limited season, such purchases may be made through one big farmer or a consortium of farmers or at times an agent who deals in these veggies. Fruits are more seasonal and the companies buy directly from orchard owners. Like apples are supplied by orchard owners from Kashmir and Himachal Pradesh, mangoes could be from Malihabad near Lucknow . Farm gate purchase for grains is more tedious and cumbersome and still continues in a big way through the mandis, because of the government policies. Even the cropping regions are quite diverse; like Basmati paddy is grown in Punjab and Haryana, as an example. Some states have also tried contract farming where farmers are first registered before the cropping season. A particular variety of seed is given to them and package of practice is explained, and when the crop is harvested the Company lifts the entire crop. Fritolay the potato chips company has done contract farming for potatoes in Ranjangaon area near Pune and Punjab Agro has taken up a huge contract farming initiative of Basmati paddy in Punjab.

ADVANTAGES VS DISADVANTAGES

Farm to fork- is model of agriculture that has come to stay and has the following advantages and disadvantages:

• Increased Profitability: It gives greater profitability and earnings to small and marginal farmers which are growing in number.

• Expert advice on crops are available such as drip irrigation, optimum use of pesticides, new cropping patterns, crop diversification and fertilizer usage, to name a few; from international crop experts associated through big retailers.

• Ready market, even before the crop is ready.

• Traceability of crop

• There is a possible danger of the buyer reneging in which case the farmer will have to look for a new buyer within a short span of time to sell his crop.

• It may not have any government support price.

*****

#RSS CAN HELP #INDIA EVEN BETTER; THROUGH ITS #SHAKHAS

article, articles, short article, short srticle, short story, snippet, , , , , , , , , , , , , , , ,

Copyright@shravancharitymission

By Kamlesh Tripathi

MISSION:

The prime mission of (RSS) Rashtriya Swayamsevak Sangh or National Volunteer Organization” or National Patriotic Organization is to revitalise Indian value system based on universalism, peace and prosperity to all under the divinity of Vasudhaiva Kutumbakam. Holding a world view that the world is just one big family, so propounded by ancient thinkers and carried forward by many others of present day and age. But some contemporary leaders also link it to be the Hindu renaissance. But before getting into this never ending debate let us more objectively and tangibly see how RSS can help the poor Indian work force out of the current quagmire. In fact it would not be out of context to highlight certain issues where RSS can contribute immensely in the present scenario of India.

STRONG BASE:

RSS is an organization that works through its ‘Shahkhas.’ (Shakha-Hindi for “branch”) Most of the organisational work of the RSS is done through the coordination of these shakhas or branches. These shakhas are run for an hour a day in many public places. In 2004 as many as 60,000 shakhas were there throughout India. But the number of these Shakhas had fallen by over 10,000 since the fall of BJP led government in 2004 but has again swelled to 40,000 in 2014 after BJPs returned to power in Delhi.

SHAKHA ACTIVITIES:

These shakhas regularly conduct activities for its volunteers that include; physical fitness, yoga; exercises and also games. It also performs diverse activities emphasizing civic sense, social service, community living and patriotism. And, in the very recent, our Prime Minister has flagged of two important issues out of their kitty. He has spoken about the importance of Yoga in the US and has also launched the Swacch Bharat Abhiyan’ carving out from of the ‘civic sense’ of RSS.

RSS volunteers are also trained in first aid and in rescue and rehabilitation works. And, last but not the least physical fitness and security drills. Where, they are regular performers and also teach the art of self defense on a regular basis. An art much required in present times.

WHAT MORE IT CAN DO

But that apart, there is something more RSS can do very effectively. What comes to my mind is a comprehensive physical training for our poor work force in the rural and urban areas. Since the physicality of a human body is well understood by RSS volunteers, having been in the business of physical fitness for so long, so who else would know this trait better than them. In fact, I would rate RSS as one of the premier organisations for doing this job, clubbed with skill building and providing work-aids or designing new ones to make the jobs of our poor brethren more humane. So, in a more detailed manner RSS can thus delve in the following issues:

  • Train labourers how to carry maximum load on their back without damaging the backbone, muscles or even their skull.
  • What precautions to take, while working in open fields, as human body is subjected to nagging and devastating pollution all over. Here I would also like to mention about the traffic police that works endlessly on polluted roads, and also the factory labour.
  • RSS is also a knowledge reservoir and can help in the development of small implements that can help poor labourers to exert less, at the same time not bring down their output. Something, like a wheel barrow.
  • Develop Small working aids that can help women in giving equal output as men. One can take the cue from MNREGA where women are paid less basis their output.
  • And if pregnant women have to work what precautions they need to take, and what are the safer jobs which they can perform.
  • Security drills for our hapless working community, especially working ladies.
  • They can even hasten the project of 100% literacy. Which is currently at a level of 75%.

On a more realistic note the girth of this mammoth exercise is going to be stupendous and will touch the heart and mind of every Indian irrespective of caste, creed and religion. For it will be for the Indians in the bottom of the pyramid. Quite, appropriately, for the needy and therefore sterling, noble and even centre of right and left. Surely RSS can make an alternate beginning and see its tinge brighten even further.

 

 

 

 

#50 SECONDS OF #DEATHLY #PANIC

short story, , , , , , , , , , , , , , , , ,

Copyright@shravancharitymission

123

By Kamlesh Tripathi

 

Death! I’ll’ tell you how she looks. I saw her from close quarters; only yesterday, while returning from office. She looked like a terrifying combination of a battered vehicle with a soiled number plate and a ghostly appearing driver who vanished into thin air in a flash of a second. And, it all happened on 21st November while returning from office.

I had just crossed Noida Golf club and was approaching the next traffic light signal on the roundabout of the Metro Station where there was a long queue of traffic waiting to cross. Moving slowly, by now I was as under the Metro station building and on the extreme right lane, inching along the high road divider, so high that while being seated in the car you could not see the traffic on the other side of the road. I was at peace as the traffic was disciplined, enjoying music; and relaxing in the company of fellow cars around, mostly returning from a hard day’s of work. Ahead, of me was a silver coloured Maruti Zen. The traffic light had gone green again, is when I realized I was about two hundred feet from it, and since I was still quite behind, I knew my time to move the car will only come by the time the light goes red again.

And, rightly so the cars ahead of me started moving only when the traffic light had turned red covering the empty road left by the cars ahead of them. I also rolled my car and stopped close to the roundabout. From where conveniently I would have crossed over in the next green light. I guess I was now just about forty or fifty feet away from the traffic light at the roundabout. To my right, continued the road divider with its fancy collection of green plants giving that fresh smell and adding to the beauty of the boulevard that ended after about twenty feet where it approached the roundabout. It wasn’t dark near the roundabout as the street lights were well lit.

A couple of seconds must have passed, is when I saw the rear lights of the Zen ahead of me flash, with that typical sound of a car being locked by the electronic remote switch. I then saw a skinny man, of medium height, perhaps the driver of that car in chappals, wearing dark coloured trousers, a half sweater getting out of it and walking away. And, very soon he reached the end of the road divider, where it ended at the roundabout and disappeared. I wondered where and why?

That gave me an uncomfortable feeling when it suddenly dawned in me, where has he gone? Why has he locked the car? And what is inside the car? Remembering the electronic remote switch that he had flaunted. Hope this is not a car bomb. I asked myself in panic, just when the traffic display read forty two seconds, to go.

The fright in me had set in. There was a car right behind me, so I couldn’t have inched backward, nor I could have gone forward. I imagined, what if this junk explodes? It will take me head on. There will be no chance of a survival. And no one knows where this bloody fellow has gone? All this must have happened in just about fifteen seconds.

Ahead of the Zen was a Mahindra Scorpio and on the left of it was the recently launched Tata Zest in its sexy blue colour which I still remember. Behind me it appeared was a Maruti Alto and to my immediate left an Innova where a guy was merrily talking on his mobile.

They say the fastest thing on earth is your mind. That had begun to sound in low decibels, as if my death-knell by a locally devised Molotov cocktail placed in a car. But the other part of my mind had suddenly started moving in top gear with my report card. In a flash it displayed things, that were undone, badly done and also successfully done in my life. It had also opened my conscience, my can of worms. Who all I had cheated and who all had cheated me; and with who all I was not fair and who all were not fair to me.

I remembered all my friends, including my girl friends. Some, unfamiliar voices reminded me, how I had hurt my Parents. Then suddenly a husky voice probably the voice of death said, ‘you have not made your will. Not explained your property papers to your wife, nor to your son, nor even to your daughter-in-law. And where have you kept your insurance papers, will they be able to find it; and what about the passwords, for if you die here in this blast your passwords might also die along with you in the computer, and what about your spiritual agenda and visits to various temples that you always wanted to carry out. All that will now have to be done in your next life provided you’re born as a human being.’ I could feebly make out, all these deadly voices were coming from that God forsaken Zen. When, suddenly I felt the flash was over. But the bomb was still alive and ticking. I suddenly missed my family.

The bright screen of the traffic light now read twenty seconds, to go. It was now or never. I quickly gathered myself, picked my phone, office bag, and moved out of the car and started walking in the reverse direction of the car when the guy sitting in the Alto behind my car said,

‘Where are you going sir, the signal will be green soon. Heeding to his advice I turned around to look at the signal in extreme fear, is when I also saw the driver of the Zen walking towards his car adjusting the fork of his pants and what lay beneath. I asked in some dismay.

‘Where did you go?’

He smiled and raised his little finger. But I had no expressions to return.

I sat in the car and slowly moved behind the Zen. There were no traffic cops there, to whom I could have narrated this episode. For them to be cautious and on the prowl about any such planned attacks by terrorists, as traffic signals were a vulnerable point.

That day I also realized the importance of ‘Swacch Bharat Abhiyaan’ of Prime Minister Sri Narendra Modi. And, just how to relieve oneself, one can commit such idiosyncrasies; and the urgent need to construct Public loos along roadside.

Life is so weird for when I was seeing death staring at me. At only a distance of ten feet the other person in the Innova was giggling and speaking on his mobile. Perhaps, these very thin lines can only be managed by Almighty alone. And more importantly,

I am now preparing my will on fast track, and having a hard look at my checkered report card.

46

ROLE OF MICRO, SMALL AND MEDIUM ENTERPISES IN BUILDING AUTOMOBILE AND FARM SECTOR

article

BY KAMLESH TRIPATHI: FORMER GENERAL MANAGER MAHINDRA & MAHINDRA LTD, HEAD-OPERATIONS MAHINDRA SHUBH LABH SERVICES LTD., HEAD-AGRI AND ENGINES ESCORTS LTD. AND VICE PRESIDENT RELIANCE RETAIL. (WRITER AND AUTHOR)

DEFINITION OF MSME:
It would be worthwhile to first define these enterprises in accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006. The MSMED are classified in two classes:

(a) Manufacturing Enterprises: The enterprises engaged in manufacture or production of goods pertaining to any industry specified in the first schedule of the industries act, 1951 or employing plant and machinery in the process of value addition to the final product having a distant name or character or use. The Manufacturing is therefore defined in terms of investment in Plant & Machinery.

(b) Service Enterprises: The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.

INVESTMENT PLATFORM OF MSME:
The limit for investment in plant and machinery/ equipment for manufacturing/ service enterprises, as notified, vide S.O. 1642(E) dtd.29-09-2006 are as under:

Manufacturing Sector
Enterprises Investment in plant & machinery
Micro Enterprises Does not exceed twenty five lakh rupees

Small Enterprises More than twenty five lakh rupees but does not exceed five crore rupees

Medium Enterprises More than five crore rupees but does not exceed ten crore rupees

Service Sector
Enterprises Investment in equipments

Micro Enterprises Does not exceed ten lakh rupees:

Small Enterprises
Medium Enterprises More than two crore rupees but does not exceed five core rupees

SOME RELEVANT STATISTICS
MSMEs contribute nearly 8 percent of the country’s GDP, 45 percent of the manufacturing output and 40 percent of exports. They provide the largest share of employment after agriculture. They are our nurseries for entrepreneurship and innovation and are widely dispersed across the country and produce a diverse range of products and services to meet the needs of the local markets, the global market and the national and international value chains. Back bone of the Indian economy, employs close to 40% of India’s workforce. Play a critical role in generating millions of jobs, especially at low-skilled level. Country’s 1.3 million MSMEs account for 40% of India’s total exports

MSME ROLE IN AUTO AND FARM MECHANIZATION

MSME has played a key role in developing the Auto and Farm sector in India. In fact big players manufacture only 30-40% in house; and rest of the components are developed by MSMEs and the pattern is similar, even abroad, as this required to be cost efficient. Apart from the manufacturer, MSMEs also manufacture for the retail spare parts markets. On a more realistic note, every, foreign collaboration is gradually indigenised; and people who generously delve in this are the MSMEs. And that goes to show they are not frugal and have the R&D capability but may lack financial muscle. And within the given business matrix they have developed many products in rural transportation, farm implements and operations and many of them have even given a good fight to products from Continent and the US. But due to lack of resources these innovators have not been unable to take their innovation to the next level and provide employment to many.

MSME REQUIRES A MORE LEVEL PLAYING FIELD:

Firstly, we need to realise, the sector that employs 40% of our workforce, and is the second largest employer after agriculture is a force to reckon with. Most of their innovations have sprung out of independent thought processes, individual initiatives and efforts; many a times referred as Jugad technology, later refined into durable PAN Indian and global products. MSMEs have evolved locally and have their ears to the ground; unlike big players who have collaborated with global players for products to adapt to Indian conditions. But both are complementary and have to co-exist rather can’t exist without each other.

And for this to happen MSME requires a more level playing field as far as their interface with the Government and big players is concerned. It is therefore imperative in all policy matters thinkers of MSME are also included to forge a more cohesive and complaint policy, taking into account limitations of MSMEs, says a medium enterprise owner who doesn’t want to be named. In the manner China has supported their MSMEs India should also follow suit. It would not be out of place to mention that we need to revisit the emission norms for Gensets, Power Tillers and engine operated irrigation pumps. Also cost and time taken for testing thwarts grass-root level innovations, and this needs to be looked into. These are some of the feedbacks received from enterprise owners who prefer to be silent.

After all when most consumer requirements are contracting to ‘compact’ versions and ‘small’ is becoming the ‘in-word’ I see no reason why MSMEs should not be invited to the applecart of industry thinkers.

Government through its hierarchy and battery of bureaucrats should ensure MSMEs don’t face any road blocks and get a voice in each forum of decision and policy making. It is a Management saying if you keep taking the same action and expect a different results you are only fooling yourself and I feel Modi Government has no intention of doing that and they would overhaul policy making committees for a fair play and encourage MSMEs offering simple frugally engineered solution to problems being faced by Agriculture, Rural Transportation and affordable and optimized transportation of agriculture produce.

ARTICLE: Rural Marketing: Is e-Commerce the Solution?

article

By Kamlesh Tripathi- Positions held: General Manager-Mahindra & Mahindra Ltd., Head Operations Mahindra Shubh Labh Services Ltd., Head Agri and Head Engines Escorts Ltd., Vice President Reliance Retail. (Writer and Author)

Before we discuss Rural Marketing and look for a solution in e-commerce let us also understand the complexity and demanding physical features of India as you need to strap the rural marketing to the physical features of India as it won’t work in a vacuum.

India happens to be 10th largest economy of the world in terms of nominal GDP and 3rd largest in consumption or (PPP) purchase power parity and therefore a huge market even domestically. 60% of our population lives in the rural areas. Our population density is 380/sq km and we are the 7th largest country by area, 2nd most populous country after China with over 1.2 billion people. Our per capita income by PPP is 5777$ and by income it is 1626$.

Let us also understand the geographical spread where our supply chain has to deliver. It has 656 districts, 5379 taluks an over 6 lakh villages and a land area of 33 lakh sq km which is five time of Pakistan and one third of China approximately. The terrain is an an assortment of both plains and snow peaked mountains.
Though we talk of one India the divide is deep that makes it two in terms of habitat, requirements, challenges and even family cash flows. And, last but not the least the literacy rate has grown to 74.04% with a decadal growth of 9.21%. And this is something to cheer about.

CURRENT SCENARIO OF RURAL MARKETING

In the current scenario most products, be it FMCG, Engineering, Industrial, Farm Machinery or Farm inputs are all sold through a network of distributors, dealers and retailers who share the channel margin. While they do provide peripheral and ancillary services to the rural folks especially farmers; they make better profits than rural folks and therefore the cost of goods to the end user increases accordingly. And a majority of them are more sales oriented than concern for after-sales-service; which is more because of lack of skill. Net-net this is not a very cheering situation. Even distribution costs rake up, because the goods are first sent to the resellers godown and then to the final user; instead of despatching it straight to the end user.

WHAT IS E-COMMERCE?

In very simple terminology e-commerce is selling through internet; as many global and Indian companies are doing such as Amazon, Flipkart, Snadeal to name a few. And, it has been extremely successful in the cities and with that rationale there is no reason why it shouldn’t be a success in the rural areas.

SO HOW WILL RURAL MARKETING THROUGH E-COMMERCE HOLD OUT?

With the increase in literacy levels especially of females going up to 65% and males to 80%, e-commerce in rural markets appear to be at arm’s length now. But, literacy needs to be converted in to skill of handling computers and operating INTERNET to enter the domain of e-commerce and this should not be difficult. Even in the arena of connectivity much has been achieved barring the speed of the INTERNET and availability of power. Some other major deterrents in ramping up e-commerce could be as follows:

• Current purchase system of farm machinery through subsidy has many leaks and only a fraction of what is spent by the Government actually reaches the beneficiary. This problem can be arrested by making DBT (Direct Bank Transfers) through Jan Dhan Scheme of the Prime Minister.

• Major sustenance of livelihood in rural areas is through farming, and therefore the government should promote e-commerce for purchase both farm machinery and inputs. But it won’t happen unless there is a monetary push by the government in providing cash incentives for orders through INTERNET out of the subsidy amount.

• Marketers will soon have to open INTERNET kiosks for selling their products at rural centres as some companies are already planning. These centres can either be managed by companies themselves or they could out source it.

• And after e-commerce catches up as a concept in Rural Marketing, companies will have to plan for service dealers aggressively for product demonstration, installation and after-sales-service. As one can only procrastinate e-commerce for a while and not reject it.

IS BLATANT HARASSMENT THE BIRTH RIGHT OF A CUSTOM’S OFFICER?

short story

Copyright@shravancharitymission

31190px-Copy_of_Customs_&_Central_Excise_DKB

By Kamlesh Tripathi

The sullied equation of exploitation always raises its ugly head, yet the ark of humanity drives the mankind. Ever since we are born, we are tutored, cultivated to be humane and especially with elders; and the degrees are even more in the Indian society. But then why is it that some government officials in hot seats forget they are human beings first and officers later and that they deal with needy subjects breathing behind the human face. I am pained to narrate one such incident that transcends human decency.

This friend of mine now a senior citizen works for an export house and has spent a lifetime dealing with customs; and more so with customs officials. Hard working, meek, erudite and a go-geter with that smiling face had just attained senior citizenship. But this time when I met him after two years that smile, grin was missing. And, I couldn’t help but asking why?

He smirked and smiled, as if at a huge cost. I knew something was bugging him, even when I was meeting him after a couple of years. We sat around for a cup of tea. He asked after me and so did I. And without losing time I again enquired what was bugging him. And, slowly but gingerly he came around.

‘You know for a long time I have been associated with the custom’s department. Dealing with custom’s documentation, arranging to pay custom’s duty as per government policy and getting import consignments released for manufacturing.

We have one custom’s appraiser here with whom I had good cordial relationship until one day when our documents came to him for release of our consignment he suddenly started asking for some additional documents which earlier he had not asked for as our consignments were revenue neutral, on advance license and therefore duty free and meant for export.

When we could not accede to his request and asked for some time he started delaying release of our consignments; and on this behaviour of his our top boss wrote to his top boss; who in turn marked our mail to one of his subordinates, senior to the custom appraiser in hierarchy.’

‘So then what happened?’

‘Something very uncomfortable, that I did not wish to encounter as a senior citizen in my life. Because by the time you join the rank and profile of a senior citizen you feel more and more people are part of your own family. And it hurts manifold when a younger member of your family harasses you ’

‘But what did he do?’

‘It appears he took serious offence to my boss’s writing to his top boss and thereafter he started humiliating me by making me wait in his office for endless hours, shouting and threatening me, that he will send each consignment that we get for testing which may take a month for clearance and our work suffers. And he now kind of teases me for clearing each of my files.

He would do things like keeping my file for days and then on my visiting him with a request to clear it he would first shout at me, and then as a sadist clear it only around evening so that it cannot reach the next table for final clearance the same day and I have to come again. Oh it is indeed horrible to get this nasty treatment from a young person of the age of your son.’ He halted with watery eyes, and, then continued. I kept mum for he was in full flow.

‘And, once he even shouted at me at the pitch of his voice and said, “You have complained against me and now I will see who clears your files.” I even said sorry to him and told him that I personally have not complained against you and it is only my management that has complained and that too about the delay and I can’t do much about it. But if you want I can tender a written apology to you or even the department on my personal behalf.

‘So then why don’t you make a written complaint? I’m sure you can lodge one through the website or even meet his seniors.’ I suggested in a sombre tone.

‘You’re right I can do that but I won’t.’

‘And why?’

‘Maybe because it’s our fault and the way we brought him up. So let his inner conscious someday tell him the way he harassed me was wrong. Inner voice is always stronger than outer voice.

So how will ‘MAKE IN INDIA’ happen with these INSENSITIVE Sarkari inspectors around?

ARTICLE: IS INDIAN AGRICULTURE TOTTERING BECAUSE OF FARM LABOUR SHORTAGE?

article

By Kamlesh Tripathi, positions held : former General Manager, Mahindra &Mahindta Ltd., Head Operations, Mahindra Shubh Labh Services Ltd., Head- Agri & Engines, Escorts Ltd., Vice President Reliance Retail (Writer and Author)

Yes it is; and may be for some more time to come, till the takeover of ‘farm mechanization’ is complete from end-to-end. And while reminiscing, admiring and complimenting the age old traditional asset of Indian agriculture- the devoted farm labour that worked generation after generation in the farmland, but is now scaling down the path let us understand the table below, etched out of the latest Indian Agriculture Census 2011 report. While the table is simple the message is all about a paradigm change.

CENSUS 2011 REPORT

PERCENTAGE SHARE OF DIFFERENT FARM POWER SOURCES IN INDIAN AGRICULTURE
YEAR AGRICULTURE WORKERS DRAUGHT ANIMALS TRACTORS POWER TILLERS DIESEL ENGINES ELECTRIC MOTORS POWER/KW/HA
1971-72 10.64 52.86 8.45 0.11 17.16 10.79 0.424
1981-82 9.2 33.55 18.46 0.11 22.85 15.82 0.592
1991-92 7.22 20.5 26.14 0.16 21.14 24.84 0.907
2005-06 5.39 9.97 38.45 0.44 20.09 25.66 1.498
2009-10 5.12 8.55 41.65 0.52 19.01 25.13 1.658

• Since 1971-72 the percentage share of agriculture work force has gone down from 10.64 to 5.12% which means a big chunk of 50% has moved away to either cities and or employment in other sectors. The figures, post 2010 are not out and therefore ascertaining the impact of MNREGA may be a miscalculation as of now. And the major impact however, has been between 1981 and 2005.

• And, similarly, but with a more aggressive intensity the percentage of draught animals has also come down from 52.86% to 8.55%. Most draught-animal farmers are small and marginal in the <2ha category or maximum medium. Therefore, maintaining these animals without proper land holding is becoming an extremely expensive proposition. For the cost of animal feed is constant or only going up but the work is seasonal and so the proposition is becoming less remunerative. And therefore the above table points to the reality of draught animals being gradually replaced by mechanization of the small and micro variety.

• And so the moot point that emanates out of the Indian Agriculture scenario is of coming down of life factors and up trending of mechanization.

• The usage of tractors has also gone up but the figure doesn’t talk of horse power trends where, 60, 45 and 35 HP category markets have largely been replaced by smaller HP categories such as 25 and 16. In fact states with high HP category industry such as Punjab, Gujarat, Maharastra, AP, TN, Karnataka and Kerala have also taken a switch to smaller HP category on account of reduction in land holding sizes. But where you have black cotton, clay soil that requires extra lugging power, the markets have continued in the domain of 35 HP and above. And also where you have sugar mills, and tractors are required for pulling double trolleys loaded with sugar cane; 35, 45 and 60 HP still rule the roost.

• The trends are also upward in case of Power tillers, which has grown quite insignificantly from 0.11% to 0.52%. The restricted growth has primarily been due to conservative marketing by small and medium players, no precise farmer training on farm economics and availability of alternative products, lack of industry cartel and even lack of focussed Government promotion to encourage micro equipment. But with the changing farm-profit trends this will catapult into a major industry by grabbing industry share from the tractor industry.

BUT WHERE IS THE WORK FORCE HEADING TO:

The major chunk of farm labour are the land less peasants who do menial yet critical farm operations such as weeding, transplanting, pesticide spraying, fertilizer application in row crops and are paid in kind.

With the percentage share of Indian agriculture declining in Indian GDP to fifteen percent, the ongoing high pressure of population’s dependence on agriculture and increasing fragmentation of land holdings leading to decreasing availability of cultivated land area per household; the availability of such seasonal jobs is becoming more and more, scarce.

Job opportunities in factories, infrastructure projects and services are becoming more lucrative. And also the advent of MNREGA that guarantees 100 days of work per annum has smothered the charm of working as a farm labourer.

India still spends almost half of her/his total expenditure on food while roughly half of India’s work force is still engaged in agriculture for its livelihood. Being both a source of livelihood and food security for a vast majority of low income, poor and vulnerable sections of society, its performance assumes greater significance in view of the proposed National Food Security Bill and the ongoing act of MGNREGA. And with this decrease in the availability of farm labour the cost of labour has also gone up. And also the cross country movement of labour for example from Bihar to other states such as Punjab has dried down.

The decrease in agriculture’s contribution to GDP has not been accompanied by a matching reduction in the share of agriculture in employment. About 52% of the total workforce is still employed by the farm sector which makes more than half of the Indian population dependant on agriculture for sustenance but the trend may change in times to come. However, within the rural economy, the share of income from non-farm activities has increased.

65% of India’s population is below 35 years of age: Knowledgeable and ambitious. They do not have the wherewithal to do donkeys work in the farm as their ancestors did. They, therefore, would like self- operated micro farm mechanization and would like status tag to be added to agriculture as an industry and end-to-end mechanization.

Trained labour shortage also encourages use of excessive weedicides and herbicides by farmers less trained in the activity that gets into the food chain resulting in increased health issues, like in some districts in Punjab groundwater is no more potable and cases of cancer rampant.

THE WAY FORWARD

The inevitable pressures of the Indian agriculture are only going to increase and the government needs to have a four cornered policy that takes care of the environment, farming viability, farm labour and productivity

• There is immediate need to have a cropwise, areawise farm profitability review. In this review each cost should be ascertained for the marginal and medium farmer.
• There is need to introduce micro cropping equipment to marginal and medium farmers for diversified critical cropping activities, more for self-farming, cost control and increase in productivity.
• Environment concerns should be addressed forthwith even it requires changing of cropping pattern. Like paddy in Punjab which requires heavy water consumption should be replaced with some other crop requiring less water and farmer profitability should accordingly be addressed
• Skill training to be imparted to farm labour for better farm economics, environmental concerns and certainty of employment for farm labourer.

ARTICLE- INDIAN AGRI’S CHINK IN THE ARMOUR

article, article sulking indian agriculture, articles, column, Indian Agriculture, short article on agriculture, short srticle, snippet, , , , , , , , , , , , ,

Copyright@shravancharitymission

915

 

 

 

 

    If the 2011 agri census had its way. It would huff, puff and jostle the policy makers to have a hard look at the stressed agri scenario of India. That is entering from the back doors of gradual reduction in operating land holding size. It may sound primordial. Yet the tremors are only getting closer to the feet, slowly and steadily.

    Let’s take a close look at some of the key statistics thrown up by agriculture census of 2011. Which are rather alarming. More for those who thrive on agriculture and considering the fact that the census takes place every five years. What will emerge in the next one, could only be a heart broken anticipation coming true.

LAND HOLDING PATTERN UNDER STRESS

    The total no of operational holding has increased from 129.22 million hectares (ha) in 2005-06 to 138.35 million ha in 2010-11, showing an increase of 7.06%. This may sound good.

    The operated area has also increased to 159.59 million ha in 2010-11 from 158.32 million ha in 2005-06. A marginal increase of only 0.80%.

    But the average operational size of land holding which was 1.23 ha in 2005-06 has declined to 1.15 ha in 2010-11, at an all India level. Which is below 3 acres on a more prevalent terminology. What it might be in the census of 2015-16 could be anyone’s wild guess. All in all, this shift will only bring about economic stress. That will perforce change the farming paraphernalia of an Indian farmer. But are we ready for it is the moot question?

    From the veritable census report in the table below one finds. The small and marginal <2 ha operational area has gone up from 41.14% to 44.58%. While both semi medium, medium and large holding have come down. And the average operational size of holding in <2 ha class has gone up from 83.29% to 85.01%. Now this should at least ring bells if not alarm bells. Further the table also conveys:

REDUCTION SWING IN SIZE OF LAND HOLDINGS
CENSUS-2005-06 CENSUS- 2010-11
SMALL AND MARGINAL < 2HA
AVEARAGE OPERATED SIZE OF HOLDING 83.29% 85.01%
OPERATED AREA 41.14% 44.58%
SEMI MEDIUM AND MEDIUM 2.00 HA-10HA
AVERAGE OPERATED SIZE OF HOLDING 15.85% 14.29%
OPERATED AREA 47.05% 44.88%
LARGE HOLDING > 10.00HA    
AVERAGE OPERATED SIZE OF HOLDING 0.85% 0.70%
OPERATED AREA 11.82% 10.59%

1012

    Major farm productivity is going to come from <2 ha holdings. Therefore, the methodology of agriculture production changes from heavy and medium to mini and micro farm equipment. Which is a capital cost change for the industry. Distribution and marketing too will have to retract and align to the scattered farm production. That is helter-skelter logistics and smaller heaps to carry and deliver.

THE NEW PAGE IN FARM MECHANIZATION

    Reduction in the size of average operational land holding by 6.50% over the last five years ending 2011. Together with the trending future and historical past, has not gone on deaf years with major Farm mechanization companies. As they too, over the years, have added, scaled down variants of lower horse power (HP) tractors in their stable. That is from 60 to 45 to 35 to 25 and now to even 16 (HP). Yet the break-even points of these machines are spilling on to the kuccha village roads or the tarmac roads where they carry passengers, work in brick-kiln and get into seasonal transport jobs to make two ends meet.

    Also mere reduction of HP will not be sufficient in bringing about farmer profitability. The present average land holding size denotes–Like a nuclear family have nuclear farming. But this nuclear farming will be viable only with tilling machines in the range of 3 to 7 HP along with allied paraphernalia. Machines that even a lady can operate and that are self-sustainable, in terms of cost by the income of the farm alone. And do not escrow with other seasonal side operations to break even. Therefore, it is not far when the early birds of the industry will arrive in this segment.

    As a concerned friend of the farmers. I feel the Government of India needs to take a pragmatic view of the ensuing scenario, and work out a complete package for the new trendsetting ‘nuclear farming.’ Which I feel is a new skill set. And I say this for the following reason.

    For etching a full time farming career from a farm of less than 3 acres would mean performing most farm activities yourself. Or in the company of your spouse, and this would require small farm machines for all activities to match that. Especially, when the net farming profitability per acre stands around twenty five to thirty thousand rupees per annum per acre. That too on irrigated land.

    Indian agriculture has been slow but steady in catching signals of change. Perhaps, it is waiting for a point when push comes to shove. But this time it needs to be proactive. And it has the capability to imbibe change. Where, the GOI must facilitate with appropriate policies.

By Kamlesh Tripathi- Ex: General Manager, Mahindra & Mahindra Ltd.; Head Operations, Mahindra Shubh Labh Services Ltd.; Head-Agri-Business & Head Engines for Gensets, Escorts Ltd.; Vice President, Reliance Retail; Head of Marketing & Sales, SAS Motors; (WRITER AND AUTHOR).

*

By Kamlesh Tripathi

*

https://kamleshsujata.wordpress.com

 *

Share if you like it

*

Shravan Charity Mission is an NGO that works for poor children suffering from life threatening diseases. Should you wish to donate for the cause the bank details are given below:

NAME OF ACCOUNT: SHRAVAN CHARITY MISSION

Account no: 680510110004635 (BANK OF INDIA)

IFSC code: BKID0006805

*

Our publications

GLOOM BEHIND THE SMILE

(Archived in 7 prestigious libraries of the US, including, Harvard University and Library of Congress. It can also be accessed in MIT through Worldcat.org. Besides, it is also available for reading in Libraries and archives of Canada and Cancer Aid and Research Foundation Mumbai)  

ONE TO TANGO … RIA’S ODYSSEY

(Archived in Connemara Library, Chennai and Delhi Public Library, GOI, Ministry of Culture)

AADAB LUCKNOW … FOND MEMORIES

(Launched in Lucknow International Literary Festival 2014)

REFRACTIONS … FROM THE PRISM OF GOD

(Co-published by Cankids–Kidscan, a pan India NGO and Shravan Charity Mission, that works for Child cancer in India. The book is endorsed by Ms Preetha Reddy, MD Apollo Hospitals Group. Book was launched in Lucknow International Literary Festival 2016)

(CAN BE BOUGHT FROM ON LINE BOOK STORES OR WRITE TO US FOR COPIES)

*****

 

SOME INTERESTING, #QUOTES AND #SAYINGS

article, articles, beautiful lines, casual causerie, column, quote, quotes and lines, snippet, , , , , , ,

Copyright@shravancharitymission

123

  • It is faith that removes mental turbidity and makes your mind clear.
  • Weakness on both sides is, as we know, the motto of all quarrels- Voltaire.
  • In the absence of writing, all knowledge was located in the mind of the Brahmin; this is why killing a Brahmin was forbidden as it was equal to killing a library. This made the Brahmin very powerful, too powerful. He jealously guarded his knowledge.’
  • The snake which cannot cast its skin has to die.
  • A journey of a thousand miles begins with a single step.
  • How long can a snake keep straight.
  • Somewhere between the bottom of the climb and the summit is the answer to the mystery why we climb.
  • What matters is not the idea a man holds, but the depth at which he holds it.
  • If there is a lesson to be learnt from success of IT, it is that openness leads to job creation.
  • Peace is not absence of conflict, it is the ability to handle conflict by peaceful means.
  • What to eat and what not to eat are options available to only those who have plenty to eat and not for those who have very little to eat.
  • There are people in the world so hungry, that God cannot appear to them except in the form of bread
  • “Mind” the emperor of all remedies.
  • Consumers need a reason to stick
  • I became the dog who caught the car.
  • All cultures are distant relatives because they are all human contracts.
  • Every single time you make a merger, somebody is losing his identity.
  • The sweetest sound in the world is the person’s own name.
  • “Manam Pola Vaazhkai” Tamil- (The way your heart goes the way your life will be) law of nature.
  • The mind is everything. What you think you become.
  • Education is what remains after one has forgotten everything he learned in school.
  • They say behind every successful man, there is a wife and behind every successful woman a resentful husband.
  • Do not ask God to guide your footsteps if you are not willing to move your feet.
  • Thinking is one thing no one has ever been able to tax
  • Life is a chaplet of little miseries.
  • The length of a film should be directly related to the endurance of the bladder.
  • Often it isn’t the mountain ahead that wears you out. It’s the little pebble in your shoe.
  • Opportunity is missed by most people because it is dressed in overalls & looks like work.
  • Absolute leaders nurture absolute followers who believe in absolute intimidation.
  • An Idea- Take up one idea. Think of it, dream of it, live on that idea, and just leave every other idea alone.
  • Winning isn’t everything- but wanting to win is.
  • Beauty is a greater recommendation than any letter of introduction.
  • Forget the past and lose an eye; dwell on the past and lose both eyes.
  • You can’t depend on your eyes when your imagination is out of focus
  • You are what other people see you as.
  • There are weeks when decades have happened and there are decades when not even weeks have happened.
  • Well, I was always enamoured with the stepwells of India.
  • A city is like a person- you need to look into its darker sides to understand the whole thing. Everyone wants to present the beautiful to you.
  • I love cows, my grandmother told me, “If you want to feel God, look into a cow’s eyes.” Gandhi protected the cow because cow is the image of all sub human life.
  • You cannot shake hands with a clenched fist.
  • ‘Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.’
  • There are many paths to the top of the mountain, but the view is always the same
  • Meaning of Life: What is meaning of life? Life is without meaning. You bring the meaning to it. The meaning of life is whatever you ascribe it to be. Being alive is meaning.
  • Election and Governance: winning a majority is one thing, running the country another.
  • If you compare life becomes miserable.If somebody is better than you, learn from them; enjoy others success. If some one is better than you at some level, do not whip yourself with comparision-.
  • Poverty is the parent of revolution & crime
  • ‘No matter if it it is a white cat or a black cat; as long as it can catch mice, it is a good cat.’
  • ‘If all had taken a leaf out of their Parents book, it would have been difficult for God to manage aspirations of mankind; as most would be on the right track.’

If you don’t know the author of these lines write to us.

*****

Posted by Kamlesh Tripathi

*

https://kamleshsujata.wordpress.com

*

Share it if you like it

*

Shravan Charity Mission is an NGO that works for poor children suffering from life threatening diseases especially cancer. Should you wish to donate for the cause. The bank details are given below:

NAME OF ACCOUNT: SHRAVAN CHARITY MISSION

Account no: 680510110004635 (BANK OF INDIA)

IFSC code: BKID0006805

*

Our publications

GLOOM BEHIND THE SMILE

(The book is about a young cancer patient. Now archived in 7 prestigious libraries of the US, including, Harvard University and Library of Congress. It can also be accessed in MIT through Worldcat.org. Besides, it is also available for reading in Libraries and archives of Canada and Cancer Aid and Research Foundation Mumbai)  

ONE TO TANGO … RIA’S ODYSSEY

(Is a book on ‘singlehood’ about a Delhi girl now archived in Connemara Library, Chennai and Delhi Public Library, GOI, Ministry of Culture, Delhi)

AADAB LUCKNOW … FOND MEMORIES

(Is a fiction written around the great city of Nawabs—Lucknow. It describes Lucknow in great detail and also talks about its Hindu-Muslim amity. That happens to be its undying characteristic. The book was launched in Lucknow International Literary Festival of 2014)

REFRACTIONS … FROM THE PRISM OF GOD

(Co-published by Cankids–Kidscan, a pan India NGO and Shravan Charity Mission, that works for Child cancer in India. The book is endorsed by Ms Preetha Reddy, MD Apollo Hospitals Group. It was launched in Lucknow International Literary Festival 2016)

TYPICAL TALE OF AN INDIAN SALESMAN

(Is a story of an Indian salesman who is, humbly qualified. Yet he fights his ways through unceasing uncertainties to reach the top. A good read not only for salesmen. The book was launched on 10th February, 2018 in Gorakhpur Lit-Fest. Now available in Amazon, Flipkart and Onlinegatha

(ALL THE ABOVE TITLES ARE AVAILABLE FOR SALE IN AMAZON, FLIPKART AND OTHER ONLINE STORES OR YOU COULD EVEN WRITE TO US FOR A COPY)

*****