TiEcon Session on Agriculture

The Decade of Agriculture: 

The Decade of Agriculture New Directions, New Paradigms

The GDP Imperative: 

The GDP Imperative GDP growth fueled by rapid growth in manufacturing and services Some slowdown expected in both Agriculture still lagging – but major upsides ahead Growth in manufacturing plateauing Agriculture needs to take up the slack to deliver on GDP growth targets – serious headroom available

…and then the Political Imperative: 

…and then the Political Imperative More than 60% of the population dependent on agriculture Controlling food inflation is a priority today Food security – and an increasing population ‘Inclusive’ growth dependent on robust progress in agriculture

The Decade of Agriculture: 

The Decade of Agriculture Both these imperatives will push agriculture to the forefront They will also drive paradigm changes: From agriculture through the lens of poverty alleviation To agriculture as a business – focus on productivity, efficiency, waste reduction, farmer prosperity From “agriculture” to “agribusiness” From a source of votes to an engine of growth Looking beyond the traditional “farm” to areas like horticulture, fisheries, dairy, poultry and meat

Slide 5: 

From yesterday to tomorrow …

Agriculture in the past: 

Agriculture in the past Last Green Revolution 4 decades ago A traditional approach, unlike manufacturing and services Agriculture policy as poverty alleviation Not kept pace with changes in consumption patterns – the shift up the calorie quality chain Inefficient investment in technology Has lagged the national GDP growth considerably Declining investment Stagnation in farm output

Some Successes …: 

Some Successes … Operation Flood – the White Revolution – AMUL Poultry: Suguna Poultry – contract farming Venkateswara Hatcheries Keggs eggs Fruits & vegetables: Mahagrapes – international market access, compression of supply chain Sula Wines Bhuira Jams Driven by private-sector / individual initiatives A case for the government to take a back seat?

Current Challenges: 

Current Challenges Food security Changing consumption patterns - moving up on the calorie quality chain Realization for farmers ( Rs ./acre/year vs. tonnes /acre/year) Size of land holdings Water management – sustainability (agriculture uses >70% of the freshwater withdrawals from rivers and ground water) Declining water table Over-irrigation – salinity of soil Managing the change in weather patterns

What needs to change?: 

What needs to change? The GDP imperative = ∑ farmer prosperity Farmer prosperity = Earning ( Rs .)/year Tonnes/acre/year Rs./tonne Yield Mkt mechanisms, policy Choices Technology Water Other inputs Doing things differently Doing different things

What needs to change?: 

What needs to change? Land lease laws Seeds & Planting Fertiliser Application Irrigation Harvesting Market linkages, Distribution Inter Cultivation Plant Protection New seed technologies

What needs to change?: 

What needs to change? Water-soluble fertilizer Micro/drip irrigation Seeds & Planting Fertiliser Application Irrigation Harvesting Market linkages, Distribution Inter Cultivation Plant Protection Water harvesting Upkeep of canal systems Soil health enhancement Integrated nutrient mgmt

What needs to change?: 

What needs to change? Seeds & Planting Fertiliser Application Irrigation Harvesting Market linkages, Distribution Inter Cultivation Plant Protection Mechanization Custom hiring Recycling of crop residues

What needs to change?: 

What needs to change? Procurement policy Seeds & Planting Fertiliser Application Irrigation Harvesting Market linkages, Distribution Inter Cultivation Plant Protection Transportation & storage Processing /preservation

What needs to change?: 

What needs to change? Land lease laws Water-soluble fertilizer Micro/drip irrigation Procurement policy Seeds & Planting Fertiliser Application Irrigation Harvesting Market linkages, Distribution Inter Cultivation Plant Protection New seed technologies Water harvesting Upkeep of canal systems Soil health enhancement Integrated nutrient mgmt Transportation & storage Processing/preservation Mechanization Custom hiring Recycling of crop residues Research & extension Mechanization Information technology Telecom Infrastructure

Changing Technologies: 

Changing Technologies The use of technology to improve quality and quantity Seeds – biotechnology, transgenic technology, hybrids Specialty chemicals – soluble fertilizers, proprietary pesticides Micro-irrigation Farm machinery Agriculture technology – green houses, cold storages, weather forecasting Across the crop cycle, increasing use of IT and telecom for greater precision and efficiency improvement Farmer access to national and global markets

The Management of Water: 

The Management of Water Main challenges Distribution Quality Excessive use of groundwater Inadequate, poorly-maintained canal systems Climate change Solutions in the domain of: Technology Policy Strategy

High performance in agribusiness: 

High performance in agribusiness Based on Accenture’s high performance business research program Building blocks: Market focus and position Distinctive capabilities Performance anatomy Global experiences and lessons