INTEGRATING SMALLHOLDER FARMERS INTO MARKET SYSTEMS (ISHFMAS)
ANDHRA PRADESH : QUICK FACTS 62% Population dependent on agriculture
| Annual growth rate of agriculture at 17%
15.65% contribution of agriculture added to State Gross Value Added
NEED FOR THE PROGRAM PROBLEM STATEMENT Water Access and Control: to a large extent the poor,
Poor soil health management: agricultural
small and marginal farmers get excluded or receive inadequate and unreliable service from different irrigation schemes. Without access to water for irrigation year-round cultivation continues to be a distant dream for these farmers.
intensification has created negative effects at different scales, such as, increased soil erosion, soil fertility decline and reduced biodiversity at the local level, depletion and pollution of groundwater and eutrophication of surface waters at the regional level.
Low Agricultural R&D specifically targeting the small and marginal farmers: Most of the R&D is
Low water use productivity: use of conventional
targeting the ten percent of farmers who own large lands however the other ninety percent continue to suffer as no R&D is conducted for them. Some of the key factors such as affordability which means low investment and operating cost, customized for use on small land size, aspect of divisibility and high return of investment need to be considered for undertaking any R&D for small and marginal farmers.
Low productivity: There are multiple reasons for low productivity. These include traditional methods of cultivation such as manual ploughing and single or two crop pattern.
irrigation technologies such as furrow irrigation leads to increased water consumption in agriculture. Absence of opportunities to access other affordable irrigating technologies is contributing to continued increased water use productivity.
Increasing inflation: increasing inflation has a direct impact on the farmers. Prices paid by farmers for various inputs increase faster than the prices they receive for their products, thereby the terms of trade for farmers deteriorate as the rate of inflation rises.
IDEI FOCUS VALUE PROPOSITION 1. INCOME POVERTY: IDEI focuses on increasing the income-generating capacity of the rural poor. This is a practical starting point from which to attack a broad range of issues surrounding poverty and provides foundation from which the poor can access all necessities to begin an upward spiral out of chronic deprivation and vulnerability. 2. RURAL POVERTY: More than 60 percent of rural population in Andhra Pradesh, IDEI has focused its energy on poverty reduction in rural areas. Although the rural poor are the primary beneficiaries of IDEI projects, the urban poor receive spin-off benefits through lower food prices, increased rural demand for urban-produced goods, and in serving poor rural populations, it is often also necessary to create or improve market linkages with input suppliers and output handlers in urban centres. 3. SMALLHOLDER HOUSEHOLDS: that engage in subsistence or small-scale commercial agriculture on small plots of land, typically less than a hectare. Usually, they supplement their agricultural activities by migrating and working as wage laborers or as agricultural laborers on others farm. However, they have a comparative advantage, of using family labor to cultivate their lands. They can deliver higher unit-area yields, better quality produce, and lower
prices than large commercial farmers. 4. EFFECTIVE MARKET PARTICIPATION: In order to respond to market opportunities, smallholders must first overcome a range of constraints ranging from challenges at the farm level to input and output markets. Constraints may include technology, information, credit, capacity, infrastructure, and so on and so forth. By encouraging them to engage in short-term but high value and low maintenance vegetable crops, IDEI focusses to increasing their productivity and multiple harvest in a year to create a comparative advantage for smallholders to engage with the markets. 5. PRIVATE SECTOR AS ALLY: In order to approach the highly voluminous bottom of pyramid population making members of the private sector as the foremost ally is key focus for IDEI. By marketing constraint-relieving products and services through the private sector it is possible to leverage private investment of both enterprises and end-users, allowing public resources to be allocated to more effective uses. Working through market channels also ensures that solutions are demand-driven and financially sustainable. This is not to say that all smallholder market constraints can be resolved by the private sector.
IDEI APPROACH TO WORK WITH SMALL AND MARGINAL FARMERS In the program supported by the Walmart Foundation IDEI followed the following approach to create a sustainable model, when scaled up. Key criteria include:
Increase Agricultural Productivity & Income by Placing Small Holders in Agricultural Value Chains: major stress laid on promoting micro-irrigation amongst large number of farmer households. IDEI enhanced productivity in existing micro-irrigation system by promoting affordable micro-irrigation technology which provides fertigation along with soil test-based addition of micro & secondary nutrients. Through improved technologies, the IDEI intervened program areas doubled the irrigated area at a lesser cost and therefore, enabled farmer to earn more income at lesser cost. (Illustration with many numbers of farmers+ more income in the centre (maybe) and drip irrigation, multi cropping, financial models-leveraging SHG/ MFI/ FPO's around it)
Market Based Approach: is determinative for establishing sustainable model of implementation, as it cuts through dependence and creation of 'free loader culture'! IDEI believes in Identifying technologies and products that conform to this critical principle. Key criteria includeaffordability, appropriateness to small plots, sustainability, self-selects the targeted segment of population/ BOP, environment friendly, gender friendly and so on and so forth. Fulfilment of these criteria enable market-based route for their promotion and adoption.
Climate Smart Agriculture: higher promotion of affordable micro irrigation technologies and SAPP products for each of the selected high value crops. These irrigation technologies require less electricity and use less than half (in certain crops) water for cultivation. (Illustration with reduced electricity and water use in agriculture, maybe comparative farms)
Establishing & Strengthening NonExclusive Supply Chain: Identifying manufacturers/ component suppliers, sales and delivery network by linking distributors, retailers and installers; creating a market plan to promote products amongst farmers and to attract them to supply chain members. Additionally, to identify Young Agricultural Entrepreneur (YAE)- an integral component of
supply chain promote crop-specific fertigation schedule both for field and horticultural crops; promote and expand fertigation along with micro-irrigation and; created livelihood opportunities for local youth to become Village Level Mechanics (VLM), establish MI system, fertigation systems (Ventury) repair.
IDENTIFICATION OF KEY LOVERS TO FOSTER DEMAND AND SUPPLY INCREASE DEMAND Higher Awareness of Technologies Available | Packages by Crop | Easier Access to Credit | Rental and Leasing | Easier Use through a User-friendly Design | Easier Maintenance through a User- Friendly Design
AWARENESS
SELECTION
ACQUISITION
INSTALLATION
USE
MAINENANCE
More Choices Matching the Needs | Larger Distribution Network | Better Availability of Goods | More Dealers and Installers Trained | More Structured Collection of Customer Feedback | Better Availability of Spare Parts and Afer-sales Services | YAE and Women SHG (YSHG) INCREASE DEMAND
Promoting Sustainable Agriculture Products and Practices (SAPP): To realize income ·
gains possible through the use of affordable technologies, developing and promoting Botanical Extracts for Preventive Pest Management and SAPP in selected high-value, (focus on vegetables & fruits) marketable crops optimized for small farm agriculture. Information of two kinds generated
& relayed to small holder farm families: Information about planting material, agronomic advice & cost-reduction strategies and Information on market prices, grading, packaging requirements & product characteristics preferred by the market (Illustration- parts extracted from the original illustration of the IPMAS model)
MODEL FOR INCREASING SHFF INCOME Scaling-up with low hanging fruits technologies
Two Pronged Strategy Innovation at pilot sites to sustain growth Converge
Consortium
Collective Action
Capacity Building
Synergy
Partnerships
Farmers Producers Organizations Women SHG
Capacity Building
Efficiency (Production)
Value addition
Profits
Employment
IMPACT TILL DATE 9, 483
49, 312
Number of farmer household reached out to
Number of people served
US$ 7 Million
14, 225
Income Generated
Land brought under cultivation
171
143, 000-person days
Non-Exclusive Supply chain established
Employment Generated
SROI IMPACT water saved in agriculture
electricity saved in agriculture
Carbon emission reduction
MODEL COULD BE REPLICATED/ SCALED UP Locations with arid/ semi-arid terrain
The program has the potential to create 4 revolutions:
Agriculturally inclined location. It is important for people to be engaged in agriculture. Although agriculture is an important means of engagement yet with other sectors doing well, there is a possibility of people being more inclined towards engaging these emerging but well-paying sectors.
Water: Opening access to affordable small plot irrigation Agriculture: Downsizing cash crop agriculture to small plots Design: Ruthless pursuit of affordability Markets: Creating new markets
Is beneficial for farmers of different land sizes The Return on Investment- is generally between US$ 400500 (conservatively) per year
And with the above generating income in the hands of user farmers and opening the gateways to prosperity and dignified lives and future!