Agro Economics of UP & Bihar:
Need Special “Eye Attention”
Why we are talking about Agro Economics? Because of this, it
covers maximum share in FMCG market and this maximum share is actually 100% generated
from Agricultural. Today world population is about 700 Crores and each person does
on average basis solid food consumption four times in a day and three time
liquid food consumption, means 4900
Crores times food consumption exists per day, and if we multiply this 4900
Crores times with any country currency on daily basis or yearly basis, you just
assume what will be the number. Standalone Agro Economics is an independent
economics which needs Focused Independently and with Separate and Special Eye.
And why we are talking about UP & Bihar Agro Economics on Global Scenario?
Because , we know that only UP & Bihar has its own importance in agro
opportunities and potential. Many countries in world are still smaller either
in area wise or in population wise hence it is important to discuss on this, this
model can be replicate to any land lock or other similar countries also.
From ancient world when civilization was developing, they chosen
river side and fertile land, so that water, transport and food problem could be
solved. Fortunately all things were available that time at UP & Bihar, and good
thing that it is still available. If in ancient world, you hear, most of the
developed city name in India, you will find all were at river side and mainly in
UP & Bihar, like Ayodhya, Mithila, Patliputra, Magadh, Kaashi etc. The
reason is again it is located at very fertile land, from wherein the public at
large could get their food, water and transport.
Now come to the point that why we are discussing now? The
answer is that to understand how Agro Economics of UP & Bihar can
contribute to India as well as to World Economy , and to address food distribution
and food for all issues.
Let us start here. Now do you know what six things required
to run any industries? if no, it is below.
Six Power of Agro Economics
Factory : UP
& Bihar has Best land in the World
Labor : UP & Bihar
has Best Labor in the World example Labor from UP & Bihar went to Gujrat,
Maharashtra, Mauritius, Fiji, Guana Trinidad etc and they build them.
Technology : UP
& Bihar has Best 7 Agro Universities
Management :
UP & Bihar has
Best Brain in the World most of the Technocrats, Bureaucrats from here
Support System: UP
& Bihar has natural support system like river, railway and 4 type of
weather
Money: This is the problem area in UP
& Bihar where attention is required
Four Key Ways of
Agro Economics Supply Chain
Highways :
If all the
National Highways will be connected with good state highways and state highway
with good town road supply chain movement will be most fast.
Railways :
UP & Bihar
has very good network of railway which can play vital role in supply chain by
establishing Warehousing Cold Storage and linkage with all Port.
I Ways :
Almost best
technocrats belong to UP & Bihar their information technology idea
implementation can fasten supply chain process
Airways : If we find
suitable selected Cargo Airport link with above 3 ways development current will
be fast.
Now if any one look at the above will definitely be
surprised that if there is all the things available which is required, then why it is deprived, the answer is simple,
a Collective Eye has not been put up
here, who can align and sync the resources up to optimum utilization. Now I
discuss how it can be aligned and optimum utilized.
Six
Challenges of Agro Economics
For any agro economics first challenge is, if cost of
the crop will be high then food prices will be high and middle class of the
society will be affected on the other way if price of the crop is low then
farmer will be badly affected.
Second challenge is, it is totally depended on nature
which is uncertain in his own, any changes in weather affects the farmer badly.
Third challenge is, insurance process of crop loss is
not as easy and easy friendly as it is for corporate. Farmer’s entire stock is
under open sky without any security.
Fourth challenge is, due to family division ultimate
land in hand in individual farmer is getting down day by day.
Fifth challenge is the young next generation of
farmer is now departing themselves from farming.
Sixth challenge is the less reach of market, supply
chain, innovation and technology to them.
How to
use Six Power & Four Key Ways to Resolve the Challenges
Breaking the 6*4 Challenge Lock
For Challenges in price a farmer should be direct to the
market as much as farmer can be. To the extent farmer will be direct to market he
will get more benefit of market, if prices goes high now a days this benefit is
going to the mediators instead of farmers. Using of E-Commerce Portal, Mobile
Apps or Online database model will be good idea.
Also government should review and reclassify the goods and
crops between life necessity and non life necessity. Non Life necessity crops
should left to the open market so that farmer can be benefitted. For this, if
amendment is required in APMC Act, government should do this.
Also if there is price restriction on some of the crop due
to inflation a farmer should opt mix of the crop. Farmer should be taught how
to cut the cost of production by using latest technology and innovation in
farming and how to use also latest technology and innovation for maximizing the
production, this both will help them to save from risk of price restrictions.
Cash Crop and Mix Crop Promotion will also help in price establishment.
For second and third challenges, a review over current
insurance practices is required. Now a days process of getting insurance money
on crop loss is very lengthy and hectic. A private insurance company and GIC altogether
should make a review and plan, so that Crop Survey can be easy and instead of
area wise Insurance compensation, it can be given Individual Farming land wise.
Now for fourth challenges, which are now biggest problem, is
getting land day by day smaller. Government and other institution should teach
them and organize awareness camps wherein they should be demonstrated about the
Loss and Benefit of Land Division. They should be educated and motivated about
the cooperative farming so that Land Size can be increased for farming. This
will help in farming planning as well as will be helpful in reducing the cost.
For fifth challenges, it is required to attract youth to the
farming and making lucrative carrier in farming. It can only be happen by joint
effort of Government, Banking, Insurance and Capital Market Institutions. A
youth after MBA, Agro engineering or any Agro Degree will attract to the
farming if they see good numbers in to this. If any educated guy got more than
20 acre land through cooperative or contract farming and use his expertise, and
if bank insurance and government facilitate him for funding and insurance,
definitely he can see Crores of turnover in this 20 acres. He himself will get
Lakhs of profit and associate land owner farmer member will also get Lakhs of
profit timely. Knowledge of new innovation and techniques will help youth to
cut the cost and maximizing the production. New Insurance Policy will save all of them from
any risk. Funding Opportunities alongwith venture funding to be introduced in
to this.
For sixth challenges we have to break the lock of Land and
technology. How it can be break is being describe in detail below.
Breaking the Land Lock :
Having lot of opportunity this area is deprived because of
the talent and agro varieties is not being reached and known to the National as
well as to the Global Market. How we can break this lock is as follows.
Opening Agro Cargo Airport
We have discussed power available at UP & Bihar and
challenges exist; now we move to the solution. As we know developed state of India
as well as world, generally exist now a day at Port side, earlier in ancient it
was river side. Here UP & Bihar and similar countries like in world, which
does not have nearby sea port and land locked, faces big problem of supply
chain in their Agro Economics. Many of the Agro Produces are in perishable
nature, and if it is not transported in proper time, all investment will be
lost so 1st solution is breaking the Land Lock. For opening a cargo
airport no need to make new port, in UP and Bihar at many places Airport and
runway is available just need to look into this and make usable for Agro Cargo
Transportation.
Connecting Agro Cargo Airport with Railway Station (
Railway Port )
A connection network should be established between all cargo
airport and railway station of UP & Bihar. As all we know that UP &
Bihar is having very rich rail network even in remote area. Railway have very
good amount of Land Bank. If Railway uses their land bank for warehousing and
cold storage at different identified point, not only farmer railway can earn
good amount of money from this. And from this warehouse or cold storage, goods can be transported to Agro Cargo
Airport.
Consolidation of data and Promotion of E-Commerce
Now if you make cargo airport, connecting it to railway
station and making storing facility at stations is no use until and unless
nation and world does not know what the thing is available and where, Hence a
consolidated data base is required of all crops and produces available there,
so that this can be well connected to the Global Market. Start UP in E-Commerce
to be promoted in to this so that they can attract and use the Infra facility
of Airport and Railway Stations and Highways.
Establishing Agro Park & Food Park
Government as well as private sector should think over the
establishment of Agro & food Park herein at UP & Bihar, as Worlds Best
5 Resources except money is here. We know money is movable item can be flown
any where while other five is local items mainly in nature. Brain and Labor
force will be more productive if they got job nearby to their family and social
harmony and balance will be established which is major factor for any
industrial growth. For establishing Agro Park 1st requirement is
suppliers which Agro Park will get just on door, second requirement is customer
which is well known in the market, i.e. 700 Crores population and per day 4900 Crores
time consumption, we need just to hit the eye. Hence market is not a problem;
problem is reach to the market which can be possible by railway network,
storage network, cargo airport and E-Commerce intervention in to this. Getting
fund for Agro Park will be easy FDI & PE can be introduced in to this if
Government facilitate.
SPV formation
For establishing Cargo Airport, Railway Port (Warehouse and
Cold Storage at Railway Station), Agro Park government and other institution
can form SPV in this regard and get easy funding and investment in to this.
This will help to fasten the process. For Example Following type of SPV can be
formed.
- SPV For Government Facilitation/Single Window
- SPV/PPP for Supply Chain Establishment
- SPV/PPP for Agro Cargo Airport
- SPV/PPP for Agro Park
- SPV/PPP for Transport Facilitation
- Committee of Experts, Citizen and Govt to monitor the Project
- Cooperative Society for Farming
Tax Holiday Zone
Government should declare tax Holiday Zone for 10 years from
all taxes if they are engaged in Agro Park, Agro Airport or Railway Port or any
activities which is incidental and ancillary to this. Main Agriculture income
is already exempt from tax.
Other Industry Development
Agro Park+ Agro Airport + Railway Port will create more
subsidiary industry nearby as well as more business activities nearby. Some of
the example are below
•
Food Processing Main & By Product
•
Dairy Main & By Product
•
Transport
•
Packaging
•
Warehousing
•
Supply Chain
•
Trading
•
Hotel & Tourism
•
Education
•
ITI
Branding of Local Famous Items will reach at its best
price
As you know today time is time of branding. There are many
famous items which is loved by the people lived across the world some example
are as below.
|
•
Fresh Flower
•
Organic Fresh Vegetables
•
Famous Mango Malihabadi & Desi Mango of
Lucknow Nearby
•
Banarsi, Langada, Kapuri, Gavarjit/ Jarda
& Other Mango
•
Guava of Allahabad
•
Amla of Pratapgarh
•
Magahi Paan of Banaras
•
Faizabadi Banda & Seeds
•
Mooli (Radish) of Jaunpur
|
•
Sugar & Sugar Cane Other Products
•
Banana of Barabanki & Sultanpur
•
Kala Namak & Other Sainted Rice of
Maharajganj & Siddharthnagar
•
Dairy Products
•
Lichi of Mujaffarnagar
•
Anandi Rice of Mujaffarnagar
•
Potato & Their Other Processed Product
•
Medical Plants
•
Other Agricultural & Their Processed
Product
•
Sweet Fish of River
|
If these items are made available, even across the border their lover
will loot this. Now the time is utilize this and made available to relevant
market, make customer happy and make farmer happy, as well as make government
happy which will be ultimate goal of Agro Economics.
Thanks
Author
CA Pankaj Jaiswal
+91-9819680011
pankaj@anpllp.com
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