eChapters

6.1. Management of important farm resources

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

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.

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.

9.1. Risk

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

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.

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).

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

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.

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.

6.1. Principles of farm finance

6.1.1. Five Cs’

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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

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.

11.1. Central Silk Board

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

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.

13.1. Forms of business organisations

Factors to be given weightage for choice of a suitable form of organization

Type of business - service, trade, manufacturing.

Selection of industry and area of operation.

Scope of operations, volume of business and market size, including its expected growth potential.

Amount of capital funds required – initial capital, working capital.

14.1. Commission for Agricultural Costs and Prices (CACP)

Set up in January, 1965 in name of Agricultural Prices Commission (APC) on recommendations of Food grains Prices Committee headed by Shri L.K.Jha.

Prices for different agricultural crops by GOI on the recommendations of CACP are announced as minimum support prices, statutory minimum prices, procurement prices and issue prices.

15.1. Minimum Support Price (MSP)

MSP are announced by GOI at beginning of sowing season for certain crops on basis of recommendations of CACP.

MSP is price fixed by GOI to protect producer - farmers against excessive fall in price during bumper production years.

Guarantee price for their produce from the Government.

Objectives are to support farmers from distress sales and to procure food grains for PDS.

16.1. World Trade Organization (WTO)

Only global international organization dealing with rules of trade between nations.

Location: Geneva, Switzerland

Established: 1 January 1995

Created by: Uruguay Round negotiations (1986-94)

Membership: 164 members representing 98% of world trade

Budget: 197 million Swiss Francs for 2018

Secretariat staff: 625

Head: Roberto Azevêdo (Director-General)

17.1. Fruit Products Order (FPO), 1995

Promulgated under Section 3 of Essential Commodities Act, 1955.

For regulating sanitary and hygienic conditions in manufacture of fruit, vegetable products.

Mandatory for all manufacturers of fruit, vegetable products to obtain a license under this order.

18.1. Buffer stock

Refers to stock of food grains maintained by government to be used as a buffer to cushion shocks of fluctuating supply and price, to meet the emergency needs and to meet the situations arising out of serious unexpected shortages resulting from transport bottlenecks, natural calamities like war, flood, famine, earthquakes, and from the influx of refugees.

1.1. Extension

Educational process for bringing about maximum number of desirable changes among the people

2.1. Radio

A popular communication medium

2.1.1. Historic features

In India, Madras Presidency Club pioneered radio broadcasting in 1924.

Due to financial difficulties, gave it up in 1927.

In 1927, businessmen in Bombay started Indian broadcasting Company with stations at Bombay and Calcutta.

But, failed in 1930.

3.1. Communication

Leagans (1961) refers as process by which two or more people exchange ideas, facts, feelings or impressions in ways that each gains a common understanding of meaning, intent and use of messages.

Communis is Latin word - meaning common.

Act of getting a sender and a receiver tuned together for a particular message, or a series of message.

Winfield (1957) refers as whole learning process; encompasses

º Teacher - message or material to be taught

4.1. Information and Communication Technology

Refers to technologies that provide access to information through telecommunications.

Similar to IT, but focuses on communication technologies.

Includes the Internet, wireless network, cell phones, and other communication medium.

5.1. Diffusion

Process by which an innovation is communicated through certain channels over time among the members of a social system.

6.1. Etawah Pilot Project (1948)

Started in 1948 by Mr. Albert Mayer of USA at Etawah district in UP

Funded by the Government of UP.

6.1.1. Objectives

To know the degree of productive and social improvements, through self confidence and cooperatives

To find how quickly these results could be attained

To know whether the results remain permanent even after the special pressure is withdrawn

To assess how far the results were reproductive in other places.

7.1. Sriniketan Project (1914)

Shri Rabindra Nath Tagore in 1914 established a rural reconstruction institute at Sriniketan involving youth from a group of 8 villages.

Maintained a demonstration farm, a dairy and poultry unit, an outdoor clinic, a department of cottage industries and a village school.

Villages were expected to approach these agencies through village workers who lived in villages to obtain solution of their more pressing problems.

Scheme of land development and tree plantation were given due importance.

Experiment on paddy, sugarcane and cotton were undertaken.

8.1. Terms and definitions

8.1.1. Extension program

A written statement of situation, objectives, problems and solutions which has been prepared on the basis of an adequate and systematic planning effort and which forms the basis of extension teaching activities in a specific area for a given period.

9.1. Rural Sociology

Science of rural society.

Study of sociological life in rural setting to discover their conditions and tendencies and to formulate principles of progress.

A.R. Desai: Rural Sociology involves the study of human relationships in rural situations.

10.1. Social value

Ideas which help an individual to discriminate whether a particular object or behaviour is good or bad, desirable or undesirable.

Norms: Times rules which govern the action

Normative behavior: People are expected to behave in accordance with the values held by the individual.

S.C. Dood defined the value as “desiderata” i.e., anything desired or chosen by someone, sometime.

Value may be considered as attitude-related attribute that are projected upon people, objects and situations.

11.1. Definition

Jones: Variations or modifications of any aspect of social process, social patterns, social interaction or social organization.

Gillin and Gillin: Variations from the accepted modes of life; whether due to alteration in geographical conditions, in cultural equipment, composition on the population or ideologies and whether brought about by diffusion or inventions within the group.

Davis and Mac Iver: Change in the relationships.

12.1. Women in Agriculture

Women are actively involved in various agricultural activities.

Analytical chemistry is a branch of chemistry dealing with the determination of constituents of a substance or mixture of substances.

1.1 Qualitative Analysis

Qualitative analysis deals with the identification of the constituents of a substance, mixture of substances, or solutions and the way in which component element or a group of elements are constituted.

1.2 Quantitative Analysis

Quantitative analysis is concerned with the determination of quantitative contents of individual element or group of elements or compound present in the substances. This branch of analytical chemistry is of enormous scope and importance in science, industry and agriculture. The quantitative analysis can be divided into several categories based on the different methods employed for their quantitative measurements such as:

2.1 Beakers

Beakers are the one of most important vessels used in laboratory which is made up of heat resistant glass.

They are available in various capacities ranging from 10 to 3000 mL.

For convenience of pouring solution, spout is provided in the beaker.

They are used to perform titrations & for boiling solutions, etc.,

Beakers are constructed in tall and low forms.

Instrumental methods of chemical analysis are the quantitative methods of analysis that use, as principal measuring devices, instruments other than those employed in conventional gravimetric and volumetric determinations.

The main basis for this method of analysis is the physical property of any particular element or compound being analyzed. These properties include:

Practice to calculate the weight / volume of reagents required to prepare the following standard solutions.

Preparation of Standard Solution - (1 M, 0.1 M, 1 N, 0.1 N, 0.5 N, 5%, 10%, 20%, 10 ppm, 20 ppm, 100 ppm)

5.1 Volumetric Techniques or Titrimetric Analysis

Acid Base Neutralization Reactions-Acidimetry & Alkalimetry

Oxidation –Reduction Reactions-Oxidometry (Permanganometry) & Dichrometry

Principle

Standard solutions are the solutions of accurately known concentrations. There are two types of standard solutions viz., primary and secondary.

A known quantity of the substances is dissolved in a volumetric flask and the volume is made upto the mark. Standard solutions prepared in this way are known as primary standard. This method can be used for preparation of standard solutions of substances which satisfy the following conditions.