The document discusses the privatization of agricultural extension services. It begins by providing context on the traditional public funding and delivery of extension, and how private and voluntary sectors have increasingly challenged this monopoly since the 1980s. Chile was the first country to test privatized extension services in 1978 as part of economic reforms. The document then discusses private extension models and services provided, as well as some advantages like increased efficiency and accountability, and disadvantages like potentially hampering free information flow. It also outlines challenges like addressing subsistence farmers and women in the rural workforce. Overall, the document examines the shift toward private extension internationally and in India.

1. D.V.KUSUMALATHA

2. Extension has been traditionally funded, managed and delivered by the public sector all over the
world. The monopoly of the public sector has been challenged since 1980.
Governments restrictions on finances and emergence of new extension strategies offered by private
and voluntary sectors have reduced the role of public sector extension.

3. Chile was the first country to test a privatised extension service.
This initiative originated in 1978, as a part of the general
economic liberation of the Chilean economy imposed by the
military government.
Professor Milton Friedman visited the country and prescribed a
shock treatment to bring an end to high inflation. This results in
drastically reducing public employees and major changes taken in
government structures. This was the main motivation for
privatization of extension activities.

4.  Process of funding and delivering the extension services by private individual or organization is
called Private Extension.
 Privatisation 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.
 Privatisation is the incidence or process of transferring ownership of business from the public
sector (government) to the private sector (business).
 Private Extension is solely the act of private individuals or organizations where the decision of
privatization solely rests with government implemented in liaison with Private Extension
Service Provider.
Privatization

5. “Privatization of Agricultural Extension refers to the services rendered in the area of agriculture
and allied aspects by extension personnel working in private agencies or organizations for which
farmers are expected to pay a fee (or free) and it can be viewed as supplementary or alternative to
public extension services”.
-Saravanan and Shivalingae Gowda (1999)
Bloom (1993) indicated that, private extension involves personnel in the private sector that delivers
advisory services in the area of agriculture and is seen as an alternative to public extension.
Van de Ban and Hawkins (1996) stated that, farmers are expected to share the responsibility for this
service and pay all or part of the cost.

6. Some of the important lessons out of international experiences are:
1. Private Extension reduces the economic burden of the governments – Netherlands.
2. Increases the efficiency of extension services provided up to the satisfaction of farmers. Otherwise,
replaced by other PESP. Government has perfect control over Private Extension – Chile.
3. Personal Economic interest of the extension agent mixed with his profession increases his involvement
in extension activity – share cropping in Equador.
4. Privatization increases the accountability of extension agent – Extension contract system in China.
5. It is possible to prevent the farmers being exploited by private extension agents by proper legislation –
Denmark.
6. Private Extension is cost effective compared to public extension due to low overhead charges – United
Kingdom.
7. Certification and grading of technical consultants is possible for regulation – Germany.
8. Government can focus on sustainable areas leaving regular extension to private extension – Tunisia

7. Public Extension System in India
 India public extension system concentrated on rural
community development objectives, rather than having
strong agriculture focus.
 Policy issues.
 Disappointing in transfer of technologies
Weak points
 Extension worker : Farmers ratio-1:1000.
 Inability to reach all farmers.
 Ineffective Extension services.
 There is no need assessment.
 Women involvement is low

8. Privatization as a system of Agricultural Extension is gradually being adopted in Indian agriculture
because of the following reasons.
• Declining trends in government expenditure in public extension due to heavy
financial burden.
• Perception of public extension service as less effective in meeting the current needs
of the farmers.
• A shift in agriculture from subsistence level to commercialized agribusiness.
• To meet the challenges of globalization and liberalization of the farm sector and
• Demand of the farmers for specialized knowledge, information and assistance.

9. Private extension services are primarily of two types.
The first is the entirely private
type which is directly involved
in farming activities through
consultants, agri-business,
agricultural input industries
etc.
The second type consists
of farmer's organizations,
NGO's etc., which remain
largely dependent on
government subsidies.

10. Models/characteristics/
elements of
Private Extension system
Objectives
Target group
Mandates
Extension personnel
Funding
Extension method

11. a. Profit maximization
b. Increasing the efficiency
Prime objective of private extension mainly concern with maximum possible profit to
the clients through advisory services. Private agencies survival depends upon the
nature of their performance.
so, they try to become more efficient and effective in providing services.
Objectives

12. a. Only those who can pay
b. More committed
c. Highly careful
d. Actively participating
Target group
Private extension mostly concentrates on big farmers, farmers growing commercial
cops, area having favourable environment like, irrigated area, fertile soil etc. clients
are more committed and careful about extension services, because they are paying
for their service.

13. a. Technologies: location specific, demand driven, timely, profitable
b. Input supply : quality, timely and adequate
private extension agency transfer the location specific and demand driven technologies. Private extension
ensures timely good quality and adequate input supply.
Mandates
a. Accountable to farmers
b. Highly motivated
c. Highly professional
Extension personnel

14. a. Clients contribution
b. Development agencies
 Private extension personnel become more accountable to clients and highly
motivated because they are getting remuneration from their clients.
 They are professionally sound and upgrade their knowledge and technical know-
how.
 They get funds from farmers contribution and development agencies.
Funding

15. a. Advisory in nature through personal communication.
b. Participatory approach
c. Less use of group and mass contact
d. Private consultants mostly adopt personal contact methods, because group
approach will reduce their chances of getting consultancy fee.
Extension method

17. DRAWBACKS

18. Public Extension Private Extension
• Supply driven • Demand driven
• Large area, large population and
diverse cropping patterns
• Limited reach, delivering limited
services in a limited geographical
area
• Poor motivation of extension
workers
• Highly motivated
• Inadequate funds • Sufficient funds
• Public funding and delivery • Public/ private funding and private
delivery

19. 1. Assessing the strength of PESP.
2. Establishment of agency to inspect, grade, certification and monitoring of PESP.
3. Areas / crops / type of farmers may be identified for handing over extension
services in a phased manner to PESP.
4. Consolidating and strengthening the public extension and to focus on public
goods and farmers / crops / areas not covered by PESP.
5. Encouraging the formation of farmer’s organizations i.e. different interest
groups, so that reaching the client becomes easy for private or public extension.
Necessary condition for Private Extension / Privatization

20. Services rendered by private extension agencies
1. Information: Information relating to availability of good quality seeds and planting
material, sources of credit, cultivation of crops including package of practice, market
intelligence, prices of commodities, e-commerce
2. Input supply: They can supply different production inputs like seeds, seedlings,
fertilizers, pesticides, credit and labour.
3. Infrastructure: Different infrastructure facilities like transport, cold storage,
storehouse, machineries (rent and repair), processing, packaging ,ay be provided to the
farmers by private extension service.
4. Technical service: Arrangement of soil testing, diagnosis of diseases and pests, water
analysis, fertilizer testing etc.

21. 5. Marketing services: Acts as buying and selling agents
6. Enterprises: Contract framing, seed production, procurement, packaging and
marketing, organic farming.
7. Consultancy: Project planning and implementation for individual farmer or
group organisations.
8. Other services: Crop, livestock and life insurance agents.

22. Strategies for Privatising Extension
 Commercialization of Extension services
 Introducing Contract Extension system
 Introducing share cropping system
 Giving partnership rights and more responsibility to private sector and
NGOs
 Gradual withdrawal of Public Extension System (area wise/ commodity
wise)
 Creating and strengthening farmers groups and cooperatives

23. Strengths Weakness
ThreatsOppourtu
nities

24. • Closeness to markets
• Better linkage with research
• Flexible in programme implementation
• Improved agricultural productivity and standard of living
• More face to face less use of mass contacts
• Exploitation and manipulation of farmers
• Extension becomes a economic input
• Human resource and organisational development are side lined
• Advertisements tends to be deceptive rather than informative.
Strengths
Weakness

25. • Availability of specialized services
• Support and control by clients
• Employment opportunities
• Increased accountability and commitment
• Marginalization of farmers
• Market failure due to spurious multiplication of markets
• Social development of people takes backstage due to profit motto of
actors.
Oppourtunities
Threats

26. Organisations providing
Private Extension Services
in India

27. 1. Agricultural consultants/ farms :
• The Pan Horti-consultancy firm in Coimbatore providing consultancy services on
agriculture to commercial farmers, agro-based industries.
• Green Plus- Agro laboratories and consultancy was established in 1995 in Nasik
district , Maharastra. The firm conducts soil and water analysis, provides consultancy
to farmers on plant protection, sells pesticides and irrigation equipments.
• Various Agri-clinics were set up in different parts of the country to provide testing
facilities, diagnostic and control services on a fee for service basis.

28. 2. Farmers association:
Commodity interest groups, framers interest groups
• Kerala mushroom growers association (1993)
• Maharashtra grape growers association (1960)
3. Krishi Vigyan Kendras (KVKs):
Till 1992, KVKs had been fully supported by ICAR. But from eighth plan period, the
funding phased out
• Agricultural Development Trust, Pune
• Vidya Bhaban KVK, Jaipur

29. 4. Producers cooperatives:
The producers cooperatives provide the farmers the advantage of economies of scale
bringing together produce from individual farms and marketing the same.
• The Malabar regional cooperative milk producers union Ltd, kozhicode, Kerala
• Chotanagapur Adivasi cooperative vegetable marketing federation Ltd, Ranchi
• Bihar state cooperative Lac marketing federation, Ranchi

30. 5. Input companies:
a. Seed companies: Ankur seeds (Nagpur), Meessina Beej private Ltd (samastipur),
Kumar Genetech and Tissue culture company (Pune).
b. Fertilizer companies: Indian Farmers Fertilizer Cooperative Ltd (IFFCO), Krishak
bharati cooperative( KRIBHCO), fertilizer and chemicals Travancore ltd (FACT)

31. 6. Non-government organisations(NGO):
• Professional assistance for development for action (PRADAN)
• Bharatiya agro industries federation (BAIF)
• Society for rural industrialization, Ranchi
• Mahila bal yuva Kendra, Patna

32. 7. Private firms:
Tata Kisan Sansar (TKS) had started in 2002 by Tata chemicals Ltd. with an objective
providing technology information, crop advisory services to empower the framers as well as
providing agricultural inputs to the farmers. It is working through “hub and spoke” model.
The hub or resource centre is named as Tata Krishi Vikas Kendra(t-kvk) caters the needs of
the spokes or franchisee outlet in its vicinity.
8. Agro-processing and trading firms for contract extension
A number of agro-processing and trading firms like PEPSICO, Global green pvt Ltd,
Unicorn agro tech ltd in gherkin cultivation, the Hindusthan lever Ltd., have entered into
contract farming arrangement with tomato growing farmers.

33. 9. Mass media
• All India Radio, Doordarshan, Annadata programme,
• Almost all vernacular newspaers are presently devoting one page once in a week
exclusively for matters related to agricultural development.
• Magazines Annadata, Adike patrike in kannada, Agrowon in Marathi are useful for
dissemination of information.
10. Others
ICT projects like e-choupal, Info-village in Pondicherry, e-arik, e-sagu

34. Advantages
• It reduces the economic burden of governments
• It increases the efficiency of extension services provided upto the satisfaction
of farmers
• It increases the accountability of extension agents.
• Government can have maximum control over private extension activities.

35. Disadvantages
• It may hamper the free flow of information
• Farmers may be less interested to disseminate technologies to other farmers what they
have learnt from private extension
• Only commercial farmers will be benefited through privatization and subsistence
farmers will seldom be able to pay the fee.
• Commercial interests of these private agencies may jeopardise the efforts of research
and extension of eco-friendly and sustainable agriculture.
• Contact between farmers and extension agents gets declined.

36. Challenges
• Larger Area under Subsistence Farming
• Need for Location Specific Technologies
• Women Dominated Rural Work Force
• Competition among Private Extension Systems leading to contradictory
messages

37. ATTRIBUTES
Areas need professional competency Development among private extension
professional
(1) Subject matter
(2) Farming systems
(3) Input & marketing
(4) Farm & Farm families
(5) Farmers problems
(6) Farm economics
(7) Extension methods
KNOWLEDGE
(1) Serving clients
(2) Tech. Know-how
(3) Field work
(4) Organisation
(5) Farmers Interest
(6) Problem solving
(7) Self-development
ATTITUDES
1) Communication
2) Technological
3) Training
4) Diagnostic
5) Solutions
6) Organisational
7) Demonstration
SKILLS
(1) Self-confidence
(2) Personality
(3) Conduct
(4) Empathy
(5) Experience
(6) Flexibility
(7) Self-development

38. Conclusion
• Privatization of agricultural extension system should not be seen as an alternative to
public extension system. Public sector has got a comparative advantage in disseminating
location specific, system based and sustainable technologies.
• The infrastructure and the extension already available should be strategically deployed to
improve the efficiency of the public extension system.
• Private extension systems should play a complementary role so that all sectors of farmers
get the required support at the right time and in the right form.
• Due attention need to be given to the challenges that have been discussed in this paper for
reaping the results of privatisation of agricultural extension which is long due