PRIVATISATION OF AGRICULTURAL EXTENSION IN INDIA: PROBLEMS AND PROSPECTS
1- Roshni Thampi, Ph.D. Scholar, Kerala Agricultural University
2- Dr. Allan Thomas, Professor, Kerala Agricultural University
The fast changing trends in Indian agriculture demands client accountable and demand-driven extension approach to provide cost-effective, bottom-up, farmer participatory extension service for clients to increase productivity and income. Today’s farmer is different from yesterday. He is not depending on agriculture for food alone, but to produce more marketable surplus to make more profit to meet his diversified growing needs born out of modernization.
The pressure of changing role and additional responsibility on public extension will add to other existing problems like wide ratio between extension worker and farmer, inadequate infrastructure and finance. Hence, the existing gap is expected to enlarge. In the interest of farmer, this gap has to be filled by private extension and already filled to some extent (Kumar and Nain, 2014).
It is assumed that private extension is more clients responsible and competent service provider that raises the voice of farmers, develops public finance, promote competitive participation of private sector and increase professionalism of extension service providers (Adejo et al., 2012).
PRIVATIZATION OF EXTENSION SERVICE
Saravanan and Gowda (1999) operationalized privatization as 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.
According to Umali and Schwartz (1993) the prime objectives of privatized extension is offering the right message to the right users at right time in the course of an efficient demand driven service system.
Declining trends in governments’ expenditures for extension, disappointing performance of public extension services, low coverage of public extension system, wide extension worker: farmer ratio, confined role of village extension worker, commercialization of agriculture and the existing market problems are some of the reasons behind privatization of extension services in agriculture (Pandey et al., 2020).
CONSEQUENCES OF PRIVATISATION OF EXTENSION SERVICE
Privatization of agricultural extension services has the danger of being accompanied by commercialization and marginalization of small and resource poor farmers and may hamper the free flow of information. Extension agents in privatized extension service are inclined to focus on large farmers who can afford to pay their fees and are primarily interested in sales of its agricultural inputs including seeds, agro-chemicals, etc. at higher rates which increase the cost of production (Uddin and Qijie, 2013). There should have strong rules and regulations to protect the consumers’ rights and fostering the welfare of the farmers.
2. Roshni Thampi and Dr Allan Thomas, Kerala
Agricultural University 2022
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3. Roshni Thampi and Dr Allan Thomas, Kerala
Agricultural University 2022
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4. Privatisation of agricultural extension in
India: Problems and prospects
Chairman:
Dr.AllanThomas
Members:
Dr. B. Seema
Dr. Jayalekshmy G
Dr. Aswathy Vijayan
Dr. Brigit Joseph
Dr. Usha C. Thomas ROSHNI THAMPI
2019-21-044
Department of Ag. Extension
Roshni Thampi and Dr Allan Thomas, Kerala
Agricultural University 2022
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5. Contents
• Public extension system
• Privatization of agricultural extension
• Approaches
• Prospects
• Challenges
• Case studies
• Success stories
• Conclusion
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Roshni Thampi and Dr Allan Thomas, Kerala
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6. Public Extension System in India
• Second largest extension system in the world
• Objective : rural community development
• Offer a one-size-fits-all to all category farmers
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(Nandi and Nedumaran, 2019)
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(Singh et al., 2013)
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8. Role of Public Extension
(Saravanan and Resmy, 2000)
Public
Extension
Technology
transfer
Food grain
production
Environment
al issues
INM and
IPDM
HRD
Advisory
services
Coordinating
efforts
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9. Weak points of Public extension system
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(Shekara, 2001)
Public
extension
system
Extn.
worker :
Farmers
ratio Ineffective
General
Women
involvement
Supply
driven
Incomplete
Conflicts
Poor
motivation
Insufficient
contact
Cost,
funds &
resources
Organization
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Roshni Thampi and Dr Allan Thomas, Kerala
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10. Need for privatisation
Declining trend in government expenditure
Advancement in technology
Commercial agriculture
Dependency of farmers
Contract farming
Need to earn more from smaller holdings
Farmers need information
Loss of credibility in existing extension
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(Adejo et al., 2012)
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11. Privatisation
Transferring
ownership from
public sector to
private sector
Reducing the role of
government or
increasing the role of
private sector
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(Saravanan and Gowda , 1999)
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12. Process of funding and
delivering the extension
services by private
individual or organization
Privatisation of Agricultural Extension
Service (PAES)
(Sarvanan and Shivalinge, 1980)
Farmers are
expected to
pay a fee
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13. Privatization emphasizes three aspects
Extension
personnel
Service fee
Supplementary
action
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(Ferroni and Zhou, 2011)
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14. Genesis of Private Extension
• Inability of the Public Extension to reach all
the farmers, all the time, regarding all
problems
• Services which are not fully covered by Public
Extension are covered by Private Extension
(Shekara, 2001)
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15. Types
• Private ACABCs
• Input dealers/ processors / traders
• Public private partnerships (PPP)
• Contract farming schemes
• Social entrepreneurs
• Cooperatives
• Agricultural Consultancies
• Agribusiness Initiatives
• NGOs
• Financial institutions
• Media, mobile applications and internet services
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(Satapathy and Mangaraj, 2001)
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16. Assumptions
Demand-Driven Service
Voice of farmers
Cost effective
Efficient and quality service
Complement public extension
Accountable extn. personnel
Staff professionalism
Committed clients
(Saravanan, 2001)
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17. Role of Private Extension
Profit maximization
Timely inputs supply
Market information and market intelligence
Processing and marketing
Credit facilities
Infrastructure facilities
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(Saravanan and Resmy, 2000)
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18. Stake holders in Private Extension
(Shekara, 2001)
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Stake
holders
Agricultural
Consultants
Progressive
Farmers
Farmer’s
organization
NGOs
Input
Dealers
Agri-business
Companies
Newspaper
Agricultural
Magazines
Private
Television
Channels
Private
Sector
Banks
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19. Major stakeholders in private
extension service in India
(Prasad, 2001)
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20. Privatization approaches
Share cropping system
Extension contract system
Village extension contract system
Contract farming
Public extension through private delivery
Service for vouchers
Partnership and more responsibility
Agricultural consultancy
Farmers groups and co-operatives
Gradual withdrawal of public extension system
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(Ferroni and Zhou, 2017)
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21. Services/initiatives offered by private
extension system in India
Cost sharing
Contract farming schemes
Paid extension service for high value crops/favoured regions
Value addition of produces
Problem solving consultancy services
Privatized service centres
Human Resource Development through need based trainings
Information support through media organizations
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(Kaur et al., 2014)
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22. Prospects of Privatized Agricultural
Extension Service Delivery
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23. • Public extension is not enough
• Private extension cannot
substitute public extension
• Private and public extension can
be complementary
• Private extension have to play a
more active role
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(Sulaiman et al., 2005)
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24. 1. Formation of Viable Farmers’
organization
• Address farm problems
• Economic benefit
• Consultation fees
• Funds of the cooperative
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(Adejo et al., 2012)
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25. 2. Extension Service Provided by Agro-
input Companies
• Quality agro-inputs
• Extension service delivery
• Mutual benefits
• Government intervention
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(Adejo et al., 2012)
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26. 3. Public-Private Partnership
• Less burden to government
• More relevant to farmers
• Complete withdrawal of public
extension is not compatible
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(Sulaiman et al., 2005)
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27. 4. Individual Consultancy
• Agricultural
graduates/diploma
holders
• Self employment
• No capital / less capital
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(Sulaiman et al., 2005)
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28. 5. NGOs in Agriculture
• Small, marginal and landless
farmers
• Credit, inputs, market
information and production
information
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(Adejo et al., 2012)
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29. 6. Making Extension Service Demand
Driven
• Involvement of farmers
• Public extension - general
• Private extension - commodity oriented,
effective and appropriate
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(Uddin and Qijie, 2013) Roshni Thampi and Dr Allan Thomas, Kerala
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30. 7. Increase Investment and Cost
Minimization
• Foreign and domestic investment
• Create competition
• Improved quality
• Less corruption
• Relief from fund deficit
• Economic growth
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(Sulaiman et al., 2005)
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31. 8. Use of ICTs
• Access to information
• Reduction of call cost for the farmers
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(Uddin and Qijie, 2013)
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32. 9. Easy and quick extension service
delivery
• Overcome the personnel shortage
• Adequate vehicle support
• Quick response to farmers’ problems
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(Uddin and Qijie, 2013)
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34. Attitude of Farmers towards the Agricultural Extension
System of State Department of Agriculture
(Pandey et al., 2020)
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35. Attitude of vegetable growers of hilly
areas towards public extension services
(Rawal and Ansari, 2020)
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Postively corelated
Age, education, income
level, farming experience,
mass media exposure,
information-seeking
behaviour
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36. Crop Farmers' Willingness to Pay for
Agricultural Extension Services
(Uddin et al., 2014)
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37. Contd …
(Uddin et al., 2014)
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38. Attitude of vegetable growers towards
privatisation of agriculture extension
67%
20%
13%
Attitude
Favourable Most favourable Least favourable
(Ram et al., 2010)
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39. Attitude of farmers towards privatization of
agricultural extension services
• Socio economic status
• Education
• Family type
• Land holding
• Extension contact
Category Attitude score Frequency Percentage
Less
favourable
28- 46 21 10.50
Favourable 47- 65 115 57.50
More
favourable
66- 84 64 32.00
(Kaur et al., 2014)
Positive and significant
relationship with attitude
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40. Association between Independent Variables and
Attitude of Farmers towards Privatization
(Naidu and Bose, 2016)
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41. Service preference of farmers and
extension personnel
(Hanchinal, 2001)
61.67
53.33 52.92 52.92
63.33
61.67
66.67
70
0
10
20
30
40
50
60
70
80
Seed production Cultivation of fruits Cultivation of
vegetables
Cultivation of flowers
Farmers
Extension
personnel
Service preferences
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42. Attitude of scientists
(Gowda and Saravanan, 2000)
27%
50%
23%
Less favourable Favourable Most favourable
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43. Effectiveness of private-sector
extension in India
Changes in yield levels
(Sulaiman et al., 2005)
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45. MAHINDRA SUBHLABH SERVICES
PRIVATE LIMITED
One-stop farm solutions centres - Mahindra Krishi Vihar
(MKV)
Objective- Integrated yeild and profit solutions
– Selling quality farm inputs
– Renting out farm equipment
– Offering farm advice
– Arranging credit
– Buying produce
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46. BASIX
• BASIX is the brand name of a group of financial services
and technical assistance companies
• Promotion of sustainable livelihoods
• 17 states
• Direct increase in productivity / output
• Alternate market channels or value addition possibilities
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47. Fasal – Climate Smart Precision
Agriculture Solutions
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• Founded In -2018
• Objective- To increase and improve the quality
of per acre yield
• Provides real-time alerts based on farm, crop,
and weather conditions
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48. Ninjacart
• Founded In -2015
• Headquarters - Bengaluru, Karnataka Product
• Objective - To provide more income to
farmers and less price to retailers by creating
an efficient supply chain
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50. Support a farmer
• Consultancy services by farmers
• Palakkad, Kerala
• Credibility
• Rent out implements,
ponds, animal sheds,
cultivable land etc.
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51. Challenges in Operating Private
Agricultural Extension Service
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52. 1. Organizational Structure
Prescribed forms of policies and
institutional framework to support and
coordinate private sector activities
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(Kumar and Nain, 2014)
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53. 2. Agricultural Extension Policy
Proper policy guidelines
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(Adejo et al., 2012)
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Agricultural University 2022
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54. 3. Larger area under subsistence
farming
• Complex, diverse and risk proneness
• Farmers are not resourceful to pay
• Private extension agencies unable to help
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(Adejo et al., 2012)
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55. 4. Need for Location Specific
Technologies
Assess and refine technologies in collaboration
with research and farming community
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(Adejo et al., 2012)
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56. 5. Women dominated rural work
force
• Approaches to work with farmwomen
• Need particular attention
• Gender dimension needs to be internalized
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(Uddin and Qijie, 2013)
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57. 6. Competition among Private extension
systems leading to contradictory messages
• Without considering farmers needs
• Confusing contradictory messages
• Too many options in future
• Farmers training courses to increase technical and
managerial skills
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(Kumar and Nain, 2014)
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58. 7. Socio-economic condition of
farmers
• Unwilling to adopt private extension support
• Private company targets mainly medium and large
farmers
• Small farmers not suitable
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(Uddin and Qijie, 2013) Roshni Thampi and Dr Allan Thomas, Kerala
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59. 8. Poor communication facilities and
remote areas
• Interested to works where communication facilities
are good.
• May not be interested to work in remote areas
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(Uddin and Qijie, 2013)
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60. 9. Profit motive with less caring the
environmental sustainability
• To sell their products rather than providing
services
• Sell hazardous chemicals without considering
environmental sustainability
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(Kumar and Nain, 2014)
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61. 10. Politics and Corruption
• Corruption takes place under the power shade of politics
• People become compelled to give money
• Discourages the private investor to invest money for
development projects
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(Kumar and Nain, 2014)
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62. 11. Credibility and competency of
the extension workers
• Public extension - irrelevant, incomplete and
irregular messages
• Farmers lost trust on public extension agents’
competency
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(Kumar and Nain, 2014)
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63. 12. Impact of Climate Change
• Flood, cyclone, drought, salinity, acid rain etc.
• Heavy damage of agricultural crops and make the
result of extension service delivery invisible
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(Adejo et al., 2012)
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64. 13. Bureaucratic Complexity
• Bureaucrats would not be happy to welcome
privatization of extension service
• Government fears to lose popularity and votes
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(Adejo et al., 2012)
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65. Constraints to privatization as
perceived by the clients
• High charges and exploitation
• Focus on Progressive farmers
• Focus on highly remunerative crops
• Focus on favourable areas
• Substandard technology
• Hamper the free flow of information
• Displacement of small and marginal farmers
• Farmers will not get motivated
(Kumar and Nain, 2014)
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66. Consequences of privatisation of
extension service
Social distance
Social conflict
Higher gap between have & haven’t
Side lining of marginal farmers
Selectiveness of technologies for adoption
Commercialization
Committed farmers
(Satapathy and Mangaraj, 2001)
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67. Cautions on privatization
• Proper legislation
• Certification and grading of technical consultants
• Proper regulatory mechanism
• Marginalization of small farmers
• ‘More pay - more receive ‘ philosophy.
• Unhealthy competition
• ‘Profit motto’
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(Uddin and Qijie, 2013)
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68. Conclusion
Minimize government expenditure
More efficient and higher quality
services
Challenges to deliver services smoothly
Increase coverage of extension service
Justice to our farmers
Requires great caution
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69. Private extension is not a substitute for public
extension, but should play a complementary
role so that farmers get required support at the
right time and in the right form
(Pandey et al., 2020)
Thank you...
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