ASSOCHAM's 7th Agricultural Summit "AGRI@8%- Challenges and Way Out“ Inputs, Farm Technologies & Productivity Dr. K C Ravi 15th February 2013 Classification: PUBLIC Future Agriculture Outlook 2 Classification: PUBLIC Did you know that…? 2050, global population will rise by about a third to 9 billion people By Out of which 1.7 billion will be in India alone Calorie demand will increase by 50% 52% of India’s population is involved in Agriculture yet it contributes just 13.7% to India’s GDP Source: FAO, World Bank statistics, Syngenta 3 Classification: PUBLIC World Population and Environmental stresses are increasing Climate change impact World Stress Map High Medium Reduction in Water Low and Arable Land Source: UNEP, Cline, Syngenta 2030 1 hectare needs to feed 5 people Developed Emerging 2050 9 billion 2011 7 billion More than 80% of population growth happens in emerging 1950 2.5 billion 1950 Classification: PUBLIC The Demand for Food and Feed will increase 1 hectare fed 2 people by 50% from 2010 to 2050 Source: FAO, Syngenta analysis 4 markets The grower’s world is getting increasingly complex Value Chain Global Financial Instability Future Farmer Governments and Regulators Societal Pressures Input costs Environmental pressures 5 Classification: PUBLIC Challenges facing the Indian Grower 6 Classification: PUBLIC Growing population and food demand By 2050 total calorie requirement will go up from 2495 to 3000. Food grain production would need to increase by 5.5 MT annually. High value foods require better infrastructure for handling, value-addition, processing, marketing. 7 Classification: PUBLIC Continuing migration of people into cities, an increase in wealth and a shift towards diets rich in meat and dairy, will raise demand for high-value food commodities by > 100% Key challenges for Input providers: Develop technologies and management options in a deteriorating production environment. Create infrastructure and evolve institutional arrangements for production, post-harvest and marketing of high-value commodities and their value-added products. Growing resource constraints Produce more with less… Land | Water | Labor Much of India’s total arable area already in use (46%) Most remaining land has serious soil and terrain constraints Arable Land (ha) per person 0.9 Hectare of Arable Land 0.8 Most populous countries have least room to expand 0.7 0.6 0.5 0.4 0.3 0.2 0.1 8 Classification: PUBLIC Source: UN and FAO, 2005 bw e Zi Af r h ut m ba ic a co ex i M US A So In do n es ia na Ch i di a In si a Ru s Br az il 0.0 Growing resource constraints Produce more with less… Land | Water | Labor Agriculture is India’s largest user of water >40% lost to inefficient practices Syngenta Solution: ‘More crop per drop’ ● Drip irrigation ensures effective water and fertilizer supply. ● Drought-tolerant seeds help produce reliable yields even when water is scarce. ● Weed control with herbicides lowers tillage, improves water absorption. ● Better Agronomy: Hi-Pop, Mulching, Protected Cultivation help increase yield. ● New irrigation technologies can reduce water use 30% 9 Classification: PUBLIC Source: UN-Water and FAO to 60%. Growing resource constraints Produce more with less… Land | Water | Labor ● Farm demographics- aging population and migration to cities influence agricultural labor availability ● High-tech machines, complex production processes and strict production regulations require skilled labor. This affects capital requirements 10 Classification: PUBLIC Source: UN-Water and FAO Indian agriculture dominated by small farmers Landholdings declined from 2.30ha in 70s to 1.32 ha in 2000-01 If this continues, average size would be a mere 0.68 ha in 2020 and 0.32 ha in 2030 Decline causing fall in farm income. Smallholders moving to postharvest and non-farm activities Input provider challenges: Evolve technologies and management options for smallholders and involve them in agri-supply chain through institutional innovations 11 Classification: PUBLIC Climate change By the end of this century, global temperature will increase by 1.8 to 4.0°C. This will Impact water availability, cause floods, droughts, recession of glaciers. Dynamics of pests and diseases would be significantly altered. Which will result in greater instability in food production Input provider challenges: Increased adaptation and mitigation research, capacitybuilding, changes in policies, and regional as well as global co-operation. Syngenta developing framework to understand environmental impacts of agriculture to increase productivity per hectare while reducing the environmental impacts. • 12 Classification: PUBLIC Source: Intergovernmental Panel on Climate Change (IPCC), World Bank Degradation of production environment ● Soil erosion has degraded 120.72 million ha of land in India ● 8.4 million ha has soil salinity and water-logging ● Water-table & water quality deteriorating. ● Green-revolution belt exhibiting problems owing to overexploitation and mismanagement of soil-and-water resources ● Input provider challenge: Stop further degradation and rehabilitate degraded land and water resources cost-effectively 13 Classification: PUBLIC Future orientation of input providers 14 Classification: PUBLIC Research, Extension and Technology ● R&D: Need to shift from research focused on irrigated areas towards research on crops and cropping systems in the dry lands, hills, tribal and other marginal areas ● Private sector participation in extension need to be intensified ● Agriculture needs new technologies and integration of the full technology toolbox from genetics all through the various parts of chemistry 15 Classification: PUBLIC Harnessing Science Synergies of frontier sciences Agricultural research needs to leverage —nanotechnology, ICT, remote sensing; Geographic Information System and GPS for improving research efficiency, better targeting of technologies and identifying production and marketing environments Power of biotechnology Time tested 1st and 2nd generation biotechnologies should be used to speed-up breeding processes, reduce investment on research for increasing yields, minimizing production risks, sustaining environment and meeting consumer preferences Science part of transgenic research should be continued and further strengthened 16 Classification: PUBLIC Syngenta Solution: Innovating across technologies to transform the way crops are grown Grower’s needs Technology Weed control Insect control Disease NematodeYield Nitrogen Drought Quality control control potential efficiency traits Breeding Native traits Biological solutions GM traits Seed care Chemical solutions Crop Protection Nutrients, water Machinery Services 17 Classification: PUBLIC Labor Post shortage harvest Resource conservation Full Potential of conservation agriculture, zero tillage, precision agriculture and micro-irrigation for different agro eco-regions needs to be exploited Efficient farming systems, composite farming, INTEGRATED crop management, nutrient management, pest management and water management should be perfected further for wider adaptability, integrated with public and private sector programmes for holistic development Enhanced participation of stakeholders and increased agro ecological literacy to be given priority in managing resources 18 Classification: PUBLIC Agricultural diversification and the value chain Meet demand for high-value commodities by using research to augment their production more efficiently, competitively 19 Classification: PUBLIC Develop improved genotypes (varieties and hybrids) and agronomy for raising productivity in different agro-ecoregions Give priority to Consumerpreferred quality traits and food safety Since these are perishables, R&D focus needs be on entire value-chain from production and postharvest to value-addition, processing and marketing Post-harvest and value-addition: 18 to 25% losses occur in supply-chain from production to consumption. Three-pronged strategy needed to reduce postharvest losses Small-scale processing chambers, storages with conventional and nonconventional energy sources Compress supply chain by linking producers and markets; Promote processing of food commodities in production catchments to add value before being marketed 20 Classification: PUBLIC Institutions and policies ● PPPs are essential ● Growing uncertainties call for policies and institutional mechanisms, evolving decision-making processes, mobilizing political support and improving governance of service providers ● Added challenge- intellectual property rights regime ● Effective, need-based institutions to accelerate innovations and link farmers with different stakeholders ● Innovative institutional models, pro-agricultural policies and regulatory mechanisms needed. 21 Classification: PUBLIC Thank You! 22 Classification: PUBLIC