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ICRISAT Archival Report 2006 - The seedlings of success in the ...

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group members. Inorganic fertilizer use is quite different for <strong>the</strong> three groups. While only 25% <strong>of</strong> no livestock<br />

group has reported buy<strong>in</strong>g <strong>in</strong>organic fertilizer, up to 50% <strong>of</strong> <strong>the</strong> o<strong>the</strong>r two groups have purchased some.<br />

However, average quantity purchased is only 36 kg per household for <strong>the</strong> large rum<strong>in</strong>ant group, 24 kg for <strong>the</strong><br />

small rum<strong>in</strong>ant group and only 7 kg per household for <strong>the</strong> no livestock group. Given that <strong>in</strong>organic fertilizer is<br />

<strong>the</strong> most expensive purchased agricultural <strong>in</strong>put <strong>in</strong> <strong>the</strong> region, its quantity used can be a good proxy for amounts<br />

farmers are <strong>in</strong>vest<strong>in</strong>g and/or are will<strong>in</strong>g to <strong>in</strong>vest <strong>in</strong> agriculture.<br />

<strong>The</strong> first group (no livestock) is expected to be <strong>the</strong> one most concerned with food shortages. All household<br />

resources are primarily geared toward mak<strong>in</strong>g sure enough food is available for <strong>the</strong> year. This group would be<br />

most likely to have few adopters <strong>of</strong> agricultural <strong>in</strong>novations. <strong>The</strong> behavior is justified by lack <strong>of</strong> all resources to<br />

devote to agricultural <strong>in</strong>novations. For this group extra labor will most likely serve as laborer <strong>in</strong> o<strong>the</strong>r farmers’<br />

fields and capital is almost not available to <strong>the</strong>m.<br />

<strong>The</strong> second group is composed <strong>of</strong> households with only small rum<strong>in</strong>ants <strong>in</strong> <strong>the</strong>ir herds. For this group<br />

agriculture will be <strong>the</strong> most important activity and <strong>the</strong>ir <strong>of</strong>ten look<strong>in</strong>g for options to improve <strong>the</strong>ir production.<br />

<strong>The</strong>y are not food constra<strong>in</strong>ed as <strong>the</strong> first group. Farmers <strong>in</strong> this category are expected to be able to <strong>in</strong>vest<br />

additional labor and/or small amount <strong>of</strong> capital <strong>in</strong>to agricultural <strong>in</strong>novations. Adoption rate <strong>of</strong> new technology <strong>in</strong><br />

this group is expected to be high especially for labor <strong>in</strong>tensive ones and those requir<strong>in</strong>g limited cash <strong>in</strong>vestment.<br />

<strong>The</strong> third group is that <strong>of</strong> <strong>the</strong> wealthiest farmers with animal herds composed <strong>of</strong> small rum<strong>in</strong>ants but also cattle.<br />

Farmers <strong>in</strong> this third group are <strong>of</strong>ten very <strong>in</strong>fluent <strong>in</strong> <strong>the</strong> village. Even though <strong>the</strong>y have crop production<br />

activities, it is not necessarily <strong>the</strong>ir most important one. <strong>The</strong>y are <strong>of</strong>ten look<strong>in</strong>g for opportunities to <strong>in</strong>vest <strong>in</strong><br />

lucrative activities. <strong>The</strong>y will adopt agricultural <strong>in</strong>novations if pr<strong>of</strong>itability <strong>of</strong> such <strong>in</strong>vestment can be<br />

demonstrated to <strong>the</strong>m.<br />

Technology development for this region should take <strong>in</strong>to account <strong>the</strong> fact that households are different <strong>in</strong> <strong>the</strong>ir<br />

<strong>in</strong>vestment and risk handl<strong>in</strong>g capabilities. Technologies that require cash <strong>in</strong>vestments will have a smaller<br />

number <strong>of</strong> potential adopters unless strategies are devised to <strong>in</strong>crease liquidity and risk handl<strong>in</strong>g capacity for<br />

those farmers. Labor <strong>in</strong>tensive ones can also run <strong>in</strong>to availability constra<strong>in</strong>ts because poor households are <strong>of</strong>ten<br />

too busy mak<strong>in</strong>g sure that enough food is made available immediately that <strong>the</strong>y do not devote enough time to<br />

<strong>the</strong>ir crops. Very poor farmers (most <strong>of</strong>ten without any assets) have limited <strong>in</strong>vestment risk bear<strong>in</strong>g capacity and<br />

are more unlikely to <strong>in</strong>vest <strong>in</strong> technologies requir<strong>in</strong>g cash <strong>in</strong>vestments.<br />

Priority 5B: Mak<strong>in</strong>g <strong>in</strong>ternational and domestic markets work for <strong>the</strong> poor<br />

Priority 5B, Specific goal 1: Enhanced livelihoods and competitiveness for smallholder producers and food<br />

safety for consumers <strong>in</strong>fluenced by changes <strong>in</strong> national and <strong>in</strong>ternational markets<br />

Priority 5B Specific goal 2: Improved market<strong>in</strong>g environment for smallholders by improv<strong>in</strong>g <strong>the</strong> efficiency <strong>of</strong><br />

domestic markets<br />

Output 1C. Strategies that encourage <strong>in</strong>vestment <strong>in</strong> dryland agriculture, that enhance <strong>the</strong> competitiveness<br />

and quality standards <strong>of</strong> farmer products, that facilitate <strong>in</strong>novative methods to improve coord<strong>in</strong>ation <strong>in</strong><br />

market cha<strong>in</strong>s, that ensure pr<strong>of</strong>itable market<strong>in</strong>g channels and outlets for <strong>ICRISAT</strong> mandate crops <strong>in</strong><br />

domestic and <strong>in</strong>ternational markets identified and promulgated by 2009 throughout <strong>the</strong> SAT with new<br />

knowledge shared with partners<br />

MTP Output Targets <strong>2006</strong> : Pr<strong>of</strong>itable market<strong>in</strong>g channels and outlets for dryland gra<strong>in</strong> legumes and tradable<br />

coarse gra<strong>in</strong>s <strong>in</strong> domestic and <strong>in</strong>ternational markets identified<br />

: Strategies that enhance farmer access and utilization <strong>of</strong> productive <strong>in</strong>puts and<br />

l<strong>in</strong>ked services that enhance competitiveness developed<br />

1C.1. Policy brief on re-energiz<strong>in</strong>g agriculture through diversification us<strong>in</strong>g <strong>the</strong> example <strong>of</strong> SAT India<br />

Diversification <strong>of</strong> agriculture towards high value crops: role <strong>of</strong> urbanization and <strong>in</strong>frastructure (Asia)<br />

Objectives: 1. Document current trends <strong>in</strong> agricultural diversification towards HVCs<br />

2. Identify major factors driv<strong>in</strong>g or imped<strong>in</strong>g diversification<br />

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