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Agri-Business Incubator ICRISATInternational Crops Research Institute for the Semi-Arid Tropics Kiran K. Sharma
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What is ICRISAT ? Not-for-profit, apolitical, internationalAgricultural research instituteEstablished in 1972About 800 staffAnnual budget US$ 21 millionMember of the Consultative Group on International Agricultural Research (CGIAR)
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Where is ICRISAT? Staff based at eight locations across Africa and AsiaWorld headquarters: Patancheru, Andhra Pradesh, IndiaSemi-Arid Tropics
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ICRISATs VisionTo improve the well being of the poor who live in the semi-arid tropics through agricultural research for impact
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ICRISAT's Missionincrease crop productivity and food securityreduce poverty protect the environmentHelp developing countries in the SATthrough Science with a Human face tothrough partnership-based research with NARS, ARIs, NGOs, private sectorApproximately 850 million or one-sixth of the worlds population live in the SAT of which 300 million are poor (unable to meet basic needs)
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SorghumPigeonpeaGroundnut MilletChickpea Agricultural research-for-development as an intervention point The rural semi-arid tropics The poorest of the poorFive cropsFocusReduce Poverty & Food Insecurity
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ICRISATs New Agenda Aim:Use science to fight hunger and poverty Approach: Participatory research Strategy:Indigenous knowledge + conventional research + cutting-edge technology
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ICRISATs achievementsTechnologies.1Over 400 high yielding crop varieties released in Asia and Africa.Worlds first hybrid pigeonpea developed.Holds 1,200 germplasm accessions of mandate crops.Developed environmentally friendly IPM & IDM packages.Development of water-shed technologies including animal-drawn implements.
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ICRISATs achievementsTechnologies.2Tissue culture and wide hybridization technologies for gene introgression from wild species.Transformation technologies to address biotic and abiotic constraints.High throughput facility for applied genomics and MAS.Development of diagnostic kits for safe food, feed, and seed.
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ICRISATs achievementsInfluencing policySustainable seed systems for commercialization in developing countries.Assessment of impact and constraints to adoption of technologiesSAT futures an development pathways.
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ICRISATs achievementsInfluencing CommunityAdoption of water shed technology (AP, MP, Rajasthan: APRLP, TATA)On-farm IPM technologies (HNPV:IFAD)Farmer participatory improvement of grain legumes (IFAD)
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ICRISATs achievementsCapacity buildingTraining of in-service extension staff.Training of post-graduate and graduate students.Specific need-based training programmesTraining of farmers for technology adoption
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Infrastructure at ICRISAT-PatancheruTotal land area is 1400 ha; 743 ha under cultivation.R&D facilities including offices, laboratories, and glasshouses occupy about 66 ha.Support services for round the clock availability of:Power & Water SupplyCommunications (Telephones, Internet)Farm & Engineering servicesPurchase DepartmentTransportHousing & FoodMedicalSecurity
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Indian Agricultural SectorFood surplus (63 m t food grains as against the recommended stock of 24 m t).80% of the population (750, 000 m people) in rural areas who depend on agricultural production and employment.Need to diversify agriculture to address the emerging food demands and habits.Need to generate revenue through agricultural production.A well advanced economic liberalization programme with attractive opportunities emerging for the private sector in both input and output markets.Following liberalization, need to produce both economically efficient & environmentally friendly technologies to tap the opportunities for export.A nascent private biotechnology industry in the health and agricultural sectors.
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Technology TransferBottlenecksR&D in the public sector has tended not to interface with private enterprise (disconnected from broader market developments and demands)Research-technology development-technology transfer-technology use (lack of emergence of more iterative relationships)Environmental degradation and loss of biodiversity are emerging as major threats to the sustainability of current agricultural development strategies.Rural poverty a major challenge (>450 m people survive on less than 1 $ per day.Agricultural development must address these problems through technological and institutional changes, that draw on the creativity of science and the public/private sectors to genuinely enfranchise the poor.
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TBIFor government:Economic GrowthNew jobs & taxesSocial benefitsFor R&D community:Research commercializationInteraction with industryAdditional incomeFor corporate sector:Technology acquisitionInvestment choiceSocial responsibilitiesFor tenant companies:Access to resourcesReduced risk & time to marketImproved business skillsBenefits of Technology Business incubators
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ABI: Integration with ICRISAT activitiesTechnology Innovation Center[TIC]ABI-ICRISATInnovationIncubator(Private Sector)CollaborativeResearch(Public Sector)ICRISAT R&DDSTOther DonorsConsultationsIPR ManagementICT Center for Dryland DevelopmentWatershedConsulting firm$$$$$$$$
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ABI-ICRISATMissionTo improve on-farm productivity, livelihood and on-farm income of Indian farming communities.To stimulate agri-technology development and transfer between ABI-ICRISAT and entrepreneurs.To provide the required infrastructure support and environment to entrepreneurs for commercializing technologies developed by IRISAT and its partners.
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ABI-ICRISATGoalsTo accelerate the agricultural based technology transfer and commercialization.To network with R&D Centers of excellence, Universities, Academic Institutions and agriculture-related incubators and incubatees globally.To foster the creation, development and innovation of agriculture businesses to farming community in India to maintain the competitive edge in the present era of globalization and trade liberalization.Provide services on marketing assistance, quality evaluation, research and development, and custom technical assistance.The center will be a champion for creating entrepreneurs, by helping agriculture businesses survive and thrive.
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Simulate technology development and transfer between ABI-ICRISAT and entrepreneurs for commercialization of agri-business technologies.Business Start-up and Support.Networking with agricultural R & D Centers of excellence, Nationals Agricultural Universities, ICAR, Advanced Centers, Academic Institutions, and other relevant International Institutes.Continuous Improvement and Innovation.Market Assessment and Trends.Awareness and generating interest about business incubation.ABI-ICRISATObjectives
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Promote technologies developed by ICRISAT on its own and jointly developed with collaborators.Agricultural-related technologies developed by other R&D centers of excellence, universities, ICAR, CSIR, and other institutions.Provide infrastructure on cost-basis and assist in obtaining financial assistance from Development Banks.ABI-ICRISATApproach
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Governing Board(GB)Director GeneralICRISATStandingAdvisoryCommittee(SAC)ManagerABI-ICRISATManagement Support SystemProject Leadersof TechnologyProgrammes to beIncubatedCEOs of Companiesat ABIOrganization of ABI
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Modus operandi of ABI-ICRISATAgri-TechnologiesR&DCentres of ExcellenceUniversities/AcademicInstitutesEntrepreneursJoint Techno-CommercialEvaluation +Further R&D atICRISATICRISAT bench/pilot-scaletechnologiesABI for scale-upsemi-commercialproduction &incubationTechnology transfer& commercializationProducts/Servicesavailable in themarket
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1.Production of goods and services close to the commercial scale.2.Design and scale-up data can be collected from fairly large size operations, which enhance the confidence level in further up scaling the process/technology and minimizes the technical failures at commercial scale.3.The goods and services produced can be used to market testing & market developmentThe confidence level of financial institutions can be enhanced for seeking funds for commercialization/ expansion.Infrastructure including special purpose plant & machinery created under NSTEDB-TBI will be available on cost-basis.This will help the entrepreneurs to concentrate on market development rather than on raising capital for the venture.ABI-ICRISATBenefits to entrepreneurs
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Technologies ready for commercialization Nuclear Polyhedrosis Virus (HNPV) for Helicoverpa controlNaturally occurring Bacillus species for managing HelicoverpaFarmer participatory seed system to promote informal seed sector in legume cropsWatershed development and managementCost-effective mycotoxin detection systems for seed, food, feed and fodderDUS testing for seed certification
ABI-ICRISATTechnologies -Phase I
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ABI-ICRISATTechnologies -phase IITechnologies developed, tested, and currently available but extensive market assessment has not yet been carried out. Tissue culture of medicinal, horticultural, and tree cropsParticle In-flow Gun for transformationTransformation protocol development for commercial cropsDetection of GMOs in seeds, food and feedMarker development for traits of interest for seed producers
For all technologiesStrategic agri-business marketing internship programme
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1.Lab and adminstration space (~10,000 sq ft.)2.Undeveloped space (as required)3.Farm space (as required)4.Glasshouse and transgenic glasshouse (as required)Development & Maintenance cOST of ~ 70 Lakhs to be recovered on actual basisABI-ICRISATICRISAT Contribution
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Capital Grant: Rs. 2.00 Crores (for infrastructure development)Recurring Grant: Rs. 10 Lakhs/yearCost recovery on actual basis from incubatees;Self-sufficiency expected by Year 6.ABI-ICRISATBudget (DST)
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Table 1. Financial outlay and funding pattern
ABI-ICRISATBalance of budget
Financial OutlayAmount (Rs. in lakhs)COST OF INVESTMENTInfrastructure (Land & building, lab & office space)65.00 Machinery, equipment & other fixed assets200.00 Operating costs for 5 years75.12 Total cost of investment340.12 MEANS OF FINANCINGICRISAT's contribution towards infrastructure65.00 ICRISAT's contribution towards recurring expenses2.12 Capital grant from DST200.00 Recurring grant for 5 years50.00 Revenue generation from NSTEDB-TBI for 5 years23.00 Total means of financing340.12
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ABI-ICRISAT Sustainability
Table-5: Projected Revenue Generation and Self-Sustainability of ABI
Projected Revenue Generation and Self Sustainability of ABI-ICRISAT
(Amt Rs. in '000's)*
Particulars
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Revenue Generation:
Technology Fee
50
100
250
400
800
Infrastructure1
70
100
150
200
400
Logistics
20
30
50
70
100
Services
30
80
100
200
300
HRD/Training
25
50
80
100
150
Consultancy
25
30
40
50
100
Total Revenue
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220
390
670
1,020
1,850
Expenditure:
Personnel2
680
704
729
756
783
813
Supplies, Utilities
150
200
220
250
300
350
Marketing, Travel
150
100
120
130
150
200
Other Admin/Oper Exp
250
180
200
220
240
250
Contingency
200
200
200
200
200
200
Total Expenditure
1,430
1,384
1,469
1,556
1,673
1,813
Operating (deficit)/surplus
(1,430)
(1,164)
(1,079)
(886)
(653)
37
*Figures in bracket indicate the deficit
1Infrastructure: Office-Lab space (10,000 sq.ft.) =Rs. 50 lakhs @Rs. 500 based on 80% occupancy; infrastructure fee @10% p.a. is Rs. 2.50 lakhs (Additional Personnel may be hired from revenue).
2Personnel:ABI-ICRISAT Manager (1)=500,000 (+ perks from revenue)
Associate (1)=180,000
Total=680,000 (+5% increase p.a.)
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See Technology Development cycleGoes to stage 8 and proceedsABI-ICRISATPert chart of activities
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Key examplesABI technologiesHNPV technology for insect bio-controlFarmer participatory seed systems to promote informal seed sector in legume cropsParticle in-flow gun for genetic transformation
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I. HNPV technology for insect bio-controlBuyers of the productDomestic market:FarmersResearchersPrivate & Government entrepreneursExport marketPrivate & Government entrepreneursIPM networks world-wideConstraintsContamination in insect rearing facilityLack of credit facilityLack of proper extension on bio-pesticidesAwareness in user groups on technical and environmentalCompetition from chemical pesticide lobby
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HNPV technology for insect bio-controlBudget & Cost Details*4-6 months for startup time, awareness, market analysis, training
ItemCost (Rs. in Lakhs)Capital cost20.0Recurring cost16.0Total cost36.0Total HNPV production per month (in Larval units Equivalents; LE)1.6Output in Rupees/month[Current market value for 1 LE = Rs. 2.0]3.2Return 12 Mo X Rs. 3.2 lakhs38.4Current market demandLot!!
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II. Farmer participatory seed systems to promote informal seed sector in legume cropsIdentification and motivation of entrepreneurial farmers with assured growing conditions to take up seed production program Training of selected farmers in seed production techniques and required crop husbandryRegular production of Nucleus/Breeder seed of improved cultivars of legume crops at ICRISATProduction of Certified/Truthful seed at farmers' fieldsEstablishment of linkages between seed producers and local traders to ensure timely availability of good quality seed at reasonable priceTraining of local seed traders in seed quality standards and proper seed storage & handling
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Farmer participatory seed systems to promote informal seed sector in legume cropsBeneficiaries:1.Legume farmers [as they will have assured supply of good quality seed of improved cultivars at the local level at a reasonable price]2.Farmer seed producers [as they will get higher price for their produce]3.Local seed traders [as they would have increased volume of trade]ICRISAT [as producer of Nucleus/Breeder seed]Benefits:Cost of groundnut breeder seed productionRs. 50,000/haBreeder seed rateRs. 38/kg podsProductivity for cost recovery1.5 t/haProductivity for profit>1.5 t/haProductivity in Rainy Season2.0 t/haProductivity in Post-Rainy season2.5-3.0 t/ha
Breeder seedFoundation seedCertified seedCultivation1 ton/ha (Rs. 38/-)10 ton/10 ha (Rs. 30/-)100 ton/100 ha (Rs. 22/-)[ICRISAT][Farmers co-operatives]
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III. Particle in-flow gun for genetic transformationAdvantages:ICRISAT facilitated technologyCost-effective compared to commercial modelHigh demand in both public and private sectorFurther needs:Improve efficiencyValidation for different cropsManual, demonstration, and research dataMarket assessment
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Benefits:Ablility to reduce the risk in commercialization of Agri- technologies and improve its impact.Substantial capital flow for commercializing agricultural technologies.Goodwill in the local community and society for creating wealth and employment in this region.Risks:Delay in completing the development of the proposed projects at bench scale, identifying a suitable entrepreneurs, and developing adequate markets for products can affect the implementation and financial viability.Timely availability of initial incubation funding/financial assistance on soft terms for commercialization of technologies.Lack of full time management team to implement the business plan.Any change in the present policy of ICRISAT in extending the physical and financial support to ABI-ICRISAT.ABI-ICRISATBenefits & Risks
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ABI-ICRISATOffice & Laboratory facilitiesOver 10,000 sq. ft. of space for labs and offices Over 6000 sq. ft. covered space can be made availableOpen area for sheds available if needed.
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ABI-ICRISATGlasshouse facilitiesInternational standards of biosafetyInstitute Biosafety CommitteeP1 and P2 greenhouses
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1,390 ha of Precision and disease sick fieldsFarm and Engineering services for supportABI-ICRISATFarm facilities
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ABI-ICRISATSocial benefitsAgri- technologies find a commercial outlet.Ability to assess impact of technology transfer.Employment opportunities in rural communities.Promoting start-up entrepreneurs in agri-business..
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ABIIntegration with partnersTechnology Innovation Center[TIC]ABI-ICRISATInnovationIncubator(Private Sector)CollaborativeResearch(Public Sector)AP-NL ProjectOutputs(micro-enterprise)AP-Genome Valley Project
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The TeamK.K. SharmaV. MahalakshmiN.S.S. PrasadT.N. MenonF. WaliyarS.N. NigamO. P. RupelaG. V. Ranga RaoH. C. SharmaN. MallikarjunaS. P. WaniC. BantilanJ. H. CrouchS. ChandraH.D. UpadyayayA. HallWilliam D DarB. Manjula
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Thank You
Key features of India agricultural sector
Significant productivity advances in main food staple, but accompanied by large food surplus in recent years 29 million tones for rice alone
Agricultural production characterized by predominately small holder production system. Couple with a large rural population of approximately 750,000 million people most of who are dependant on agriculture production and employment.
One of the largest concentrations of agricultural and food scientists in the world, including in advanced scientific areas. Complementary scientific and management expertise held in a large number of world class organization in India
A large domestic market for agricultural produce and following liberalization, opportunities for produce export.
Agricultural sector well integrated in market economic. High demand for purchased inputs- seed, pest management inputs.
A well advanced economic liberalization programme with very attractive opportunities emerging for the private sector in both input and output markets.
A emergent vertically integrated food industry offering the opportunity to more efficiently link primary producers to consumers via private industry. Related food habit changes in urban sector towards proceed convenience foods.
A well established private seed industry, with many large companies investing in R&D.
A nascent private biotechnology industry in the health and agricultural sectors. Complementary capacities in information technology provide a potential comparative advantage in bio-informatics.-R&D in the public sector has tended not to interface with private enterprise and so is disconnected from the broader market developments and demands.Underlying assumption that research, technology development, technology transfer, and technology use were a sequential tasks, has limited the emergence of more iterative relationships between science, the market, and technology users.WTO means that Indian agricultural and the agro-based industries must become more competitive, both in terms of price, but also in terms of quality. In many sectors a quality reputation is yet to be built. Indian wheat prices for example are significantly higher than international prices due to policy distortions in India.
Entry into global markets and international competition requires rapid technical change in both production and post-harvest arenas. Existing institutional arrangements make this difficult, particularly so where scientific expertise cuts across exiting organizational boundaries and where partnership between public and private sectors are required. New, flexible and evolving multi-agency groupings are required.
Environmental degradation and loss of biodiversity are emerging as major threats to the sustainability of current agricultural development strategies. Science needs to provide new strategic opportunities that go beyond ameliorating existing constrains, and contribute to an new development paradigm that will prove sustainable in the long run.
Rural poverty remains, with more than 450 million people surviving on less than a dollar a day. Agricultural development must address this problem through technological and institutional changes, that draw on the creativity of science, the public and private sectors in ways that genuinely enfranchise the poor.
It is important to test transgenics under totally safe conditions for which we have recently commissioned a transgenic greenhouse. ICRISAT follows all the guidelines of the Government of India in this regard. Once we prove that all transgenics with which we are dealing are safe, we will be very keen to work with scientists of the programs to test them under field conditions so that farmers can receive benefits as quickly as possible. It is important to test transgenics under totally safe conditions for which we have recently commissioned a transgenic greenhouse. ICRISAT follows all the guidelines of the Government of India in this regard. Once we prove that all transgenics with which we are dealing are safe, we will be very keen to work with scientists of the programs to test them under field conditions so that farmers can receive benefits as quickly as possible.