PRIVATIZATION OF AGRICULTURAL EXTENSION SERVICESGUNGADI SHARANAPPAPG 09 AGR 1017Dept. of Agril. Extension Education

CONTENTSINTRODUCTION CONCEPTREVIEW OF LITERATURECHALLENGES ASSUMPTIONSAPPROACHESCASE STUDIESCONCLUSION

I.C.A.R. Extension System: KVK,

Extension system of the MoA /SDRD,

Extension system of the MRD/SDRD,

Extension work by NGOs, corporate and co-operative institutions etc,

Extension efforts of Agricultural Universities.

Limitations of the Present Extension System Expensive.

Very time consuming process.

Leads to information loss.

Poor communication capacity.

Lack of adequate number of extension workers.

Lack of adequate allocation of funds.

Barala, 2006

Contd.

Inadequate involvement of all stake holders.

Weak Research-Extension-Farmer-Marketing linkage.

Poor infrastructural facilities.

Inadequate operating resources and financial sustainability.

Uneven spread of Extension services.

Over the years public extension has become a dead weight on public funds and less than 10 percent of the budgets are currently available for operational expenses, the rest being used for maintenance of the staff structure.

M. L. Manrai, 2001

Present Problems of Agriculture SectorShrinking agriculture productive land,

Small and scattered land holdings,

Low production & small market surplus,

Lack of organized markets,

ContdLack of credit facilities,

Lack of promotion to non-farm entrepreneurship among farmers and

Lack of timely information

Concept of private Extension / PrivatizationThe process of funding and delivering the extension services by private individual or organization.

Privatization is the act of reducing the role of government or increasing the role of private sector in an activity or in the ownership of assets

Bloome, 1993

Financial Burden on Government ,

Poor performance of Public Extension Service,

Commercialization of Agriculture,

Inability of the Public Extension to reach all the farmers,

Inability of the Public Extension to cover all the services.

Chandra shekara, 2000

The word Privatization broadly refers to a process by which the government reduces it role in an activity and encourages private sector to take up these roles. It means the change from providing free public services financed by government to a commercial institution self financed by users on the basis of cost recovery.

Merits of Private ExtensionTransformation of agriculture from more subsistence level to commercialized agri-business

New patent regime has drawn the attention of private sector

Efficient delivery service

High quality of service

Reduction of input supply risk ensuring the volume, quantity and timing of supply to their consumer

Purpose specific , target specific

Enhanced efficiency of staff

Van Den Ban & Hawkins, 1996

Providing free-of charge extension service

Promote sales of production inputs (or) services

Assure continuous supply and quality agricultural products

Promote project returns on investment in farms

More effective because farmer can select an adviser , who is the best able to help

Resources, innovative ideas motive for profit and thus keen to offer effective and better service to customer

Healthy competition among service provider

Contd

Stake holders in private Extension System

Agricultural Consultants,

Agricultural Consultancy Firms,

Farmers organization/co-operatives,

Agri-business Companies,

Input Dealers,

News papers,

Agricultural Magazines/Journals

Private Television Channels,

Private Sector Banks,

Internet.

Chandra Shekara, 2004

Operationalisation of PAES Private Agricultural Extension Service is operationally defined as services related to provision of agricultural inputs, provision of marketing services, and consultancy/advisory services. (production and marketing) rendered to farmers by private companies/firms on the basis of payment or free of charge.

SOME IMPORTANT OPINIONS ON PRIVATIZATION OF EXTENSION SERVICES The public extension system is facing constraints of funds, in efficient field staff, political pressures, centralized bureaucratic authority, large areas, diverge cropping systems and large population.

Due to these reason the private extension service is encouraged nowadays.

The private extension service is expected to provide demand driven, cost effective and quality service.

Supe, 2003

A thinking is on at the National level to private extension efforts of the country. In this direction we need to identify the area, types of farmers, geographic location etc. to whom private extension 'can suit. In our country the privatization has already taken place in the disciplines of veterinary extension, plantation crops, seed production and floriculture. The efforts of multinational and other private sectors such as Pepsi, Brooke Bond etc. are the examples of such. However, we should take this step with a caution that in our country there is a lot of heterogeneity in farming systems. Therefore, it is suggested that we may take this step in a phased manner.

Hansra, 1996

Review of LiteratureTheoretical orientation of privatization in agricultural extension service.

Experiences of privatization of agricultural extension service.

Approaches implemented by private sectors.

Focus of private sectors and

Advantages and disadvantages of private extension service

The private extension provider is an individual or organization other than government who is providing single or integrated services to the farmers.

Chandra Sekhara , 2002 Theoretical orientation of privatization in agricultural extension service

Experiences of privatization in agricultural extension serviceHarter and Hass (1992) reported that most of the commercial agencies concentrate their activities on areas having favorable physical environments such as fertile soil and satisfactory infrastructure.

(Commercialization of British extension system: Promise or primrose)

Approaches implemented by private sector

Chandra Shekara (2001) said that agri-business firm provides all agricultural inputs and technologies to farmers. They also supervise on production processes. The mutual benefit here is that the farmer gets input, technology and market support, where as the firm gets quality product at reasonable price.

(Private extension in India; myths, realities, apprehensions and approaches.)

Focus of private sectors

Pray and Echeverria (1990) reported that private consulting firms in Asia tend to concentrate on plantation crops and a growing number are staffed by plantation managers and technicians.

(Private sector agricultural research and technology transfer links in developing countries)

Advantages and disadvantages of privatization of agricultural extension service

Baxter (1987) said that private extension agencies do not usually apply their resource to the food crops that are fundamental to farmers, but on those who produce the cash crops.

(Agricultural Extension Worldwide: Issues, Practices and Emerging Priorities)

CHALLENGES IN PRIVATISING AGRICULTURAL EXTENSION SERVICES IN INDIA 1. Larger Area under Subsistence Farming 2. Need for Location Specific Technologies

3. Women Dominated Rural Work Force Agriculture in India is a family occupation

4. Competition among Private Extension Systems leading to contradictory messages

Assumptions behind Private Extension

Extension generates new income, extension become economic input.

Provides Demand-Driven Service

Increases the voice of farmers in the extension service

Extension service become more cost effective with efficient and quality service

Privatization complement or supplement the efforts of public extension

Extension personnel become more client accountable

Private extension increases staff professionalism

Clients (farmers) are more committed to the service

Private extension not suitable to small and marginal farmers

Private extension concentrates big and progressive farmers and areas having favorable environment

Private extension is less education oriented and more commercial in nature

Private extension dont concentrate on food grain production

Private extension restricts flow of information

Less contact between extension worker and farmer

Contd

PRIVATIZATION APPROACHES1. Share cropping system

2. Extension contract system

3. Village extension contract system 4. Contract farming

5. Public extension through private delivery

6. Service for vouchers

STRATEGIES FOR PRIVATIZING EXTENSIONCommercialization of extension services Complex, demand driven technologies in the public extension system should be provided for particular cost.

Introducing Contract Extension System Public extension system can make contract with registered private agricultural consultancy agencies to transfer the agricultural technology.

Introducing Share Cropping System

Giving partnership rights and more responsibility to private sector and NGOs.

Creating and strengthening farmers groups and co-operatives

Experiences of extension privatization in different countries Private Extension reduces the economic burden of the governments and increases the efficiency of extension services provided Netherland

Government has perfect control over Private Extension Chile Personal economic interest of the extension agent mixed with his increase of professional involvement in extension activity share cropping in Ecuador Rivera, 1996

Privatization increases the accountability of extension agent Extension contract system - China

It is possible to prevent the farmers being exploited by private extension agents by proper legislation Denmark

Private Extension is cost effective compared to public extension due to low overhead charges United Kingdom

Certification and grading of technical consultants is possible for regulation Germany

Government can focus on sustainable areas, leaving regular extension to private extension Tunisia

Favorable factors for privatization Technological advancement in the areas of Communication & Information Technology

Opening out of public research and educational institutes to part with the technologies

Changing-cropping trend and emergence of contract farming

Need to earn more from smaller holdings

Loss of credibility in the existing extension system

Inability of the public extension system to reach the large target client system

Negative impacts of privatization

Focused mainly on commercial farmers

Profit maximization role by generating location specific , demand driven technology

Neglected the production of food crops

Concentrated on area having favorable physical environment

Exploitation of farmers

Neglected education role

Regional imbalance

CASE STUDIES

AGROCEL - Agro Service Centers

The pioneering leader with 55 years of strong foundation in the chemical world.In 1988, they launched their dream project AGROCEL - Agro Service Centers in Kutch with a shared capital from the Gujarat Agro Industries Corporation, the Government of Gujarat.Now the service centers in Kutch, one in Vadodara, Gujarat, two in Maharashtra, one in Haryana, and one in Jammu & Kashmir.

AGROCELs Mission: To make all agri-inputs available to farmers at the right time and at reasonable cost with all necessary technical guidance.AGROCELs Activities: Crop Improvement, Land & Water management, Nutrient Management, Pest and disease management.Pawar, C.S. and Patel, H.G.

AGROCELs Financial outlay

Farmers Co-operatives - AMUL The Kaira district co-operative milk producers union selected the brand name AMUL for its product.it has a turn over of 500 crores, covering 9,70,000 farmers of one district serving with just 150 extension workers. On an average 333 people visits AMUL daily.Village Society: - The village co-operative society consists of primary milk producers. To become a member, a milk producer pays an entrance fee of Re.1 and buys at least one share of Rs.10.District Union: - The Union is managed by a Board of Directors of which twelve are elected from among the Chairmen of village societies.Education: - The Union maintains a constant link with rural producers specially women. Welfare Activities: - Two scholarships are given every year to outstanding children of members

Anonymous., 2000

Members: 13 district cooperative milk producers Union No. of Producer Members:2.79 millionNo. of Village Societies: 13,328Total Milk handling capacity: 11.22 million litres per day Milk collection (Total - 2008-09): 3.05 billion litresMilk collection (Daily Average 2008-09): 8.4 million litres

Milk Drying Capacity: 626 Mts. per dayCattle feed manufacturing Capacity: 3500 Mts per day

Sales Turnover Rs (million) US $ (in million) 1994-95 111403551995-96 137904001196-97155404501997-98188404551998-99221924931999-00221854932000-01225885002001-02233655002002-03274575752003-04289416162004-05292256722005-06377368502006-074277810502007-085255413252008-09671131504

Agriclinics and Agribusiness Centers A nationwide project initiated in 2002 to train and deploy private extension personnel throughout the country.

The course is offered through approximately 60 different training institutions in India.

The farmers who use the services of the agriclinics are expected to pay a fee established by the agripreneur.

Programme objectives: The programme is designed to help develop opportunities for private extension, in order to lower the burden on public funding.

Number of personnel trained till 2009- 7211

MANAGE, 2002

StateKarnatakaName Sadashiva AchariIdentification No KAR3014 Qualification B.Sc AgAddress S/o Narayan Achari, Mudala house, Peraje VillageBudoli post, Bantwala tq South Kannada Karnataka - 574253 Phone: 08255-313206 Email: sada_achar@rediffmail.com Training InstituteKAR-UAS-BLRDate of Completion5/14/2009Nature of Services Providedtraining the rural women about vermicompost preparations, value addition Total Investment(a) Fixed:4(b) Operational:1Source of InvestmentBarrowed If borrowed, Name of the Bank & Placevijaya bank, main br,bawtwala Average income per monthRs.50000No. of farmers covered1000No. of villages covered10

Partnership Defined The term public private partnership in the present context is necessarily a collaborative effort between the public and private sectors contributing for one or more functions like planning, resources and activities as required to accomplish a shared goal set out by the partners.

The public and private partnership may occur at any one or more stages in the process of extension, production, procurement, processing, marketing etc. depending upon the stated objectives of partnership.

MANAGE, 2004

The case of Public Private Partnership Excel Parle Farmers A case of Partnership Excel Crop Care Limited (ECCL) initiated one such experiment called Excel and Me where me represent the farmers.

Objective: The main objective of the ECCL is to minimize the cost of cultivation of crops, improve production and productivity by providing advisory services and package of practices, thus increasing the income of farmers.

Excel And Me: Excel, over the years, had initiated this systems approach wherein Integrated Pest Management (IPM) and Integrated Crop Management (ICM) were consistently promoted.

Excel retail outlet:

The Excel & Me not only offers advice to the farmers for crop cultivation but also provides quality inputs at a wholesale price to grow the crops for better yields. The farmers who come for the Gyan Kendra not only receive proper advice but also they can get farm machinery on hire.

Role of public institutionsPresently there is no formal arrangements between Excel and other public institutions like KVK and Department of Agriculture. however, the informal collaborative efforts are made to provide proper advice to the farmers. The KVK scientists are invited by the Excel in the farmers meet to share the latest research and practices.

Parle-Excel-farmer programme has resulted inIncrease in the yield by using improved varieties of sugarcane and package of practices.

Creating awareness about soil health and increase in the organic carbon content in soil.

Creating awareness of using bio-compost

Creating awareness about the application of right inputs in right proportion thus reducing the cost of cultivation.