eChapters

12.1. Agribusiness

Concept was born in Harvard University in 1957.

John David and A. Goldberg wrote a book ‘A concept of Agri-business’.

In early 1966, University of Philippines offered an Agri-Business Management (ABM) UG program.

In 1969, first Advanced Agribusiness Management seminar held in Manila.

11.1. Central Silk Board

Established in 1948 at Bangalore under administrative control of Ministry of Textiles.

10.1. Co-operative marketing

Private agencies dominate Indian food grains trade.

High marketing charges and prevalence of malpractices.

Progress of regulated markets is not uniform in all areas.

Need for strengthening co-operative organization in marketing of farmers produce and supply inputs at right price and time.

9.1.AGMARK

‘Ag’ means agriculture and ‘mark’ means certification mark.

Certifying agency: Directorate of Marketing and Inspection, Government of India

Effective region: India

Effective since: 1986

Product category: Agricultural products

8.1. Warehousing

8.1.1. Definitions

Defined as the assumption of responsibility for storage of goods.

Protector of national wealth, for the produce stored in warehouses is preserved and protected against rodents, insects and pests and against the ill effect of moisture and dampness.

7.1. Marketing institutions

Business organizations which have come up to operate the marketing machinery.

Individuals, corporate, co-operative and government institutions are operating in agricultural marketing.

Speculation and hedging are important ways of minimizing price risk in business.

Speculation: Risk is taken by person specializing in business without much consideration of business trends.

Hedging: A calculated risk is taken.

5.1. Meaning and importance of risk

Hardy defined as uncertainty about cost, loss or damage.

Inherent in all marketing transactions.

Destruction of produce by fire, rodents or other elements, quality deterioration, price fall, change in tastes, habits or fashion, and risk of placing commodity in wrong hands or area.

Longer the time lag, greater will be the risk.

Cannot be dispensed with and be ar the risk in marketing process.

One who holds commodity in process is risk bearer, because of which he may be better off or worse off

4.1. Definition

Kohls and Uhl refer to expansion of firms by consolidating additional marketing functions and activities under a single management.

Establishment of wholesaling facilities by food retailers and setting up of another plant by a milk processor.

3.1. Marketing efficiency

Degree of market performance.

Whether it fulfills objectives assigned or maximizes fulfillment of objectives with given level of resources (or costs)

Whether it is responsive to impulses generated through environmental changes and whether impulses are transmitted at all levels in the system.

For example

Farmers expect quick market clearance and higher prices for their produce

Consumers expect ready availability of products in form and quality desired at lower prices

Traders and other functionaries expect steady and increasing incomes

Government expects system to safeguard interest of all three sections to maximize welfare of society.

3.1. Marketing efficiency

Degree of market performance.

Whether it fulfills objectives assigned or maximizes fulfillment of objectives with given level of resources (or costs)

Whether it is responsive to impulses generated through environmental changes and whether impulses are transmitted at all levels in the system.

For example

Farmers expect quick market clearance and higher prices for their produce

Consumers expect ready availability of products in form and quality desired at lower prices

Traders and other functionaries expect steady and increasing incomes

Government expects system to safeguard interest of all three sections to maximize welfare of society.

2.1. Market structure

Refers to those organizational characteristics of a market which influence nature of competition and pricing, and affect the conduct of business firms.

Those characteristics of market which affect the traders behavior and their performances.

Formal organization of functional activity of a marketing institution.

A knowledge of structure is essential to identify imperfections in performance of a market.

1.1. Concept and definition

1.1.1. Marketing

Process of getting right goods or services or ideas to right people at right place, time, and price using right promotion techniques and utilizing appropriate people to provide customer service associated with those goods, services, or ideas.

9.1. Agriculture Insurance Company of India Limited (AIC)

Formed 1 April 2003 took over implementation of National Agricultural Insurance Scheme (NAIS) from General Insurance Corporation of India.

Also transacts other insurance businesses directly or indirectly concerning agriculture and its allied activities.

8.1. Kisan Credit Card (KCC)

Credit scheme introduced in August 1998 by Indian Banks.

Prepared by NABARD on recommendations of R.V.Gupta committee to provide term loans and agricultural needs.

KCC holders are covered under personal accident insurance up to Rs.50,000 for death and permanent disability and up to Rs.25,000 for other risk.

Premium is borne by both bank and borrower in a 2:1 ratio.

Validity period is five years with an option to extend for up to three more years.

7.1. Crop insurance

Helps in stabilization of farm production and income of farming community.

Helps in optimal allocation of resources in production process.

Crop insurance is sold and bought in a market.

Has a limited role in risk management in farming.

Any limitations to scope for effective and economic crop insurance can change over time.

6.1. Principles of farm finance

6.1.1. Five Cs’

5.1. Emergence of Service Area Approach

During the five years ended 1985-86

Gross value added in agricultural sector: 2.70% per annum.

Share of agriculture in total net domestic product declined from 39.80% to 35.40%.

Food grains production increased from 133.30 million tons to 150.50 million tons by 18%

In contrast, there was 41% increase in outstanding level of credit for agriculture from rural lending agencies viz., Co-operatives, RRBs and CBs between June 1981 and June 1986.

Share of Haryana, Punjab and U.P. in total food grains production was around 38% accounted for 75% increase in food grains output.

However, their share in the total institutional credit was 22% only.

4.1. Area approach

National Credit Council was set up in December, 1967

Study group in October, 1968 under chairmanship of Prof. D R Gadgil found that Commercial Banks had penetrated only 5000 villages as of June, 1967 and its share was 1% compared to co-operatives.

Recommended the adoption of an area approach for bridging the spatial and structural credit gaps.

All India Rural Credit Review Committee 1969 also endorsed the view the Commercial Banks should increasingly came forward to finance activities in rural areas.

RBI accepted recommendation and formulated Lead Bank Scheme (LBS) in December, 1969

Each district had been assigned to different banks (Public and private) to act as a consortium leader to coordinate branch expansion and credit planning.

Nationalization of 14 major Commercial Banks in July 1969 (Another 6 banks in 1980), paved the way for branch expansion network in unbanked rural and semi urban areas.

3.1. Reserve Bank of India

Established in April 1, 1935 as per RBI Act, 1934.

Agricultural Credit Department (ACD) organized in 1935 coordinated Bank’s operations with State Co-operative Banks and other banks and organization dealing with agricultural credit

Financing agriculture by commercial banks is looked after by Department of Banking Operations and Development (DBOD)

While, ACD continued to take care of co-operative credit

2.1. Recommendation of expert committees

Commercial banks tended to concentrate more on industrial sector than agricultural sector.

Indian Central Banking Committee (1931), Agricultural Finance Subcommittee (1945), Rural Banking Enquiry Committee (1950), All India Rural Credit survey committee (1951), All India Rural Debt and Investment Survey (1961-62) and Informal Group on Institutional Arrangements for Agricultural Credit (1964) suggested that financing agriculture by commercial banks was not significant (Until 1950).

1.1. Credit

Defined as a device for facilitating temporary transfer of purchasing power from those who have surpluses of it to those who are in need of it.

9.1. Risk

Situation in which one knows both possible future and probability outcomes.

8.1. Comparative advantage principle

Different areas or regions or farmers will tend to produce those products for which they have greatest comparative and not just absolute advantage.

Due to an extension and application of principles of specialization and diversification.

Each farm or region produces those crops or raises that livestock which it can grow more profitably

For example, farmers in Tamil Nadu specialize in sugarcane cultivation and those in Punjab specialize in paddy cultivation.

7.1. Farm planning

Decision making process in farm business

Involves organization and management of limited resources to realize specified goals continuously.

Selecting most profitable course of action from among all possible alternatives.

6.1. Management of important farm resources

Factors of production are land, labour, machinery, equipments and buildings.

5.1. Cost concepts

Cost refers to the money value of effort extended or sacrifice made in producing an article or rendering a service or achieving a specific purpose.

Expenses incurred in organizing and carrying out production process.

Includes outlays of funds for inputs and services.

Total costs: Money value of all inputs used in the production process.

4.1. Agricultural production economics

An applied science, wherein principles of choice are applied to use of land, labour, capital and management in farming.

Explains conditions under which profit and output can be maximized and cost and use of physical inputs can be minimized.

Classification of the farming systems based on following criteria

Available natural resources, include water, land, grazing areas and forest; climate especially altitude; landscape including slope; farm size, tenure and organization.

Dominant pattern of farm activities and household livelihoods, include field crops, livestock, trees, aquaculture, hunting and gathering, processing and off-farm activities.

2.1. Principles

Six basic principles.

2.1.1. Principle of variable proportions or laws of returns

Helps in deciding optimum amount of an input needs to be applied for cultivation of a particular crop or enterprise.

Law of diminishing returns will operate.

1.1. Farm business management

Concerned with resource allocation.

Useful to impart knowledge and skill for optimizing the resource use and maximizing profit.

Bioagents like insects, pathogens etc., and other animals are used either to reduce growth or kill weeds.

But, not possible to eradicate weeds.

3.1. Cereals and millets

3.1.1. Rice

1. Major weeds

Grasses

2.1. Based on life span

2.1.1. Annual weeds

1.1. Weeds

Plants that are unwanted in a given situation and may be harmful, dangerous or economically detrimental.

Weed invasion ranked second to habitat loss in causing biodiversity decline.

Major threat to both the productivity of land and water and integrity of natural ecosystems.

3.1. Definition

Systems approach to reduce nematode to tolerable levels through predators and parasites, genetically resistant hosts, natural environmental modifications and appropriate nematicides.

2.1. Rice

2.1.1. Rice root knot nematode (Meloidogyne graminicola)

1. Symptoms

1.1. Above ground feeders

1.1.1. Feeding on flower buds, leaves and bulbs.

Seed gall nematode: Anguina tritici

Leaf and bud neamtode: Aphelenchoides

Stem and bulb nematode: Ditylenchus

11.1. Storage fungi

Store fungi include all species of Aspergillus, Fusarium and Penicillium.

Aspergillus flavus, A. candidus, A. niger, A. parasiticus, A. repens, A. rubber, A. versicolor, etc. Penicillia etc

Penicillia are more prevalent in cooler climate.

10.1. Sugarcane

10.1.1. Yellow leaf disease

1. Vector: Melanaphis sacchari , Rhopalosiphum maidis

2. Symptoms

9.1. Groundnut

9.1.1. Early leaf spot: Cercospora arachidicola

1. Symptoms

8.1. Redgram

8.1.1. Wilt: Fusarium udum

1. Symptoms

7.1. Rice

7.1.1. Blast

Magnaporthe oryzae (formerly Magnaporthe grisea) anamorph: (Pyricularia oryzae)

6.1. Fungicides

Fungicide originated from two latin words viz., fungus and caedo.

Word caedo means to kill.

Fungicide is a chemical agent which has the ability to reduce or prevent the damage caused to plants and their products.

Physical agents like ultra violet light and heat should also be considered as fungicides.

Antisporulant and fungistatic compounds do not kill the fungi, they are included under the broad term fungicide

5.1. Cultural methods

5.1.1. Eradication

Elimination of pathogen after it has become established in the area where host is growing.

4.1. Physical methods

Employed for reduction or elimination of primary inoculums that may be present in seed, soil or planting material.

Methods for plant diseases control were first classified by Whetzel (1929) into exclusion, eradication, protection and immunization.

Two more principles - avoidance and therapy were created (NAS, 1968).

2.1. Types of plant diseases

2.1.1. Types of infection

1. Localized diseases

1.1. Definition

Alteration in one or more of physiological processes culminating in a loss of coordination of energy utilization in a plant as a result of the continuous irritation due to presence or absence of some factor or agent.

A plant is said to be diseased when there is a harmful deviation from normal functioning of physiological process (Federation of British Plant Pathologists, 1973).

13.1. Storage pests

13.1.1. Rice weevil: Sitophilus oryzae, S. zeamais, S. granarius

1. Host range: Wheat, rice, maize, sorghum, paddy.