Second green revolution will be a boon, say experts

Mumbai, Mar 16 (UNI) Indian agriculture is changing and the second green revolution has brought a broad re-organisation of agricultural value chains, which is the result of advances in information and communication technology and evolving consumer demands.

These and many such observations were the outcome of discussion among agro-experts, bankers and traders on the second day of the three-day International Conference in Asia on Agriculture here today.

Rabo India Finance Managing Director Rajesh Srivastav said financial institutions have always tried to promote supply chain in agriculture, particularly in India. If supply chain concept is right then all the links in the value chain will be perfect, he said.

The 2.4 per cent agro growth was insignificant as compared to growth in other sectors.

It has become imperative for everybody involved in agriculture industry to minimise wastage taking place and provide whatever the farmers need in an appropriate, economical manner, he said.

Srivastav said if Indian agro-industry had to build a great future, it had to be based on innovation, knowledge and best practice.

NABARD Executive Director R Balakrishnan had a different view of the present agro-system in the country. He said different segments in agriculture should be mainstreamed. It will help farmers as they would be compelled to turn into unwilling entrepreneurs, he said.

Provision of financial aid to economically and poor rural population, carpet banking for inclusion and viability, single purpose credit counter procedure, credit marketing and relationships not only for urban business, credit to be coupled with technical and commercial extensions and 'goan ka paisa gaon main' were some of the options to streamline agriculture that he recommended, he said.

FAO Rural Finance Senior Officer Calvin Miller said the key issues of agro-business affecting consumer interests were anticipatory change, knowledge of market, competitiveness and quality, risk return and payments in the large scale rural agro-trade.

ICICI Lombard Head (Rural Division) Pranav Prashad said weather insurance was the latest incentive for the agro-industry, which was even explicitly mentioned by the Finance Minister for the fist time in the Budget 2007-2008.

He said, weather insurance ascertains the way weather inputs decide the fate of crops and arrive at a compensatory level accordingly.

In addition, the process of making index-based assesments for the insurance are peril identification, weather in-depth setting for each plant or crop, bank testing for pay rolls and merits of index- based insurance, Mr Prashad said Other speakers elaborated on the benefits of this second green revolution for farmers and consumers alike. Farmers will be able to plant the crops for which consumers are ready to pay good prices.

They contended that the virtous cycle of growth that has characterized India's cities over the past years will come to the countryside. Much of the current large waste in the marketing and distribution system will be eliminiated and consumers will be able to buy high quality food products at affordable rates.

UNI