Employment Generation in
Agriculture, Wasteland Development,
Afforestation & Agro-Industries
Workshop on Employment in Rural Non-Farm Sector
Institute for Applied Manpower Research
New Delhi, March 25-27, 2002
1
Contradictions in Indian Agriculture

Lowest wages but highest unit production cost for all crops -due to low crop yields.

Abundant water resources but not enough water for agriculture
-- due to wastage of water.

e.g. California cotton farmers produce 35 times more cotton per liter of
water than in Tamil Nadu with AT.

Huge food stocks but widespread malnutrition -- due to lack of
purchasing power.

Though farmers produce more, they earn less -- due to falling
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market prices.
Vicious Cycle of Indian Agriculture
Low Crop Productivity

High Production Cost & Low Employment Generation

Low Incomes, Low Purchasing Power
& Low Demand For Food Crops

Low Food Consumption, Malnutrition & Chronic Poverty
3
Solution to the Contradictions

Increase productivity to reduce unit cost of production and generates jobs, higher
income for farmers, and exportable surpluses.

Raise profitability of agriculture to increase the incomes and purchasing power of
rural population to eliminate malnutrition and stimulate demand.

Link agriculture to agro-industries such as biomass power, fuel and edible oil to
provide assured market for surplus production & generate non-farm employment.

Rotate crops every season and diversify from foodgrains to commercial &
orchard crops in response to market demand to avoid surplus production.

Raise efficiency of water usage & crop productivity by advanced methods of
deep soil ploughing & rainwater harvesting.
4
Virtuous Cycle of Indian Agriculture
High Crop Productivity

Low Production Cost & High Employment Generation

High Incomes, High Purchasing Power & High Demand For
Food Crops

Higher Food Consumption, Good Health & Prosperity
5
Agriculture Technology (AT)
Engine for Growth
Higher crop yields & farmer
profit through AT
Higher on-farm
employment
Links to Agro-industries
for assured market
Higher non-farm
employment
Higher purchasing power leading
to bigger demand for food
6
Critical Needs

Apply advanced crop production technology to
raise yields

Intensive training of farmers on AT

Diversify cropping patterns

Improve management of water resources

Create links with agro-industries
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Low Indian Crop Productivity (kg/ha)
Crop
USA
India
USA/India
Rice
6622
2928
2.3
Maize
8397
1666
5.0
Wheat
4400
2583
1.7
Groundnut
3038
912
3.3
Soy beans
2452
1007
2.4
40,238
17,307
2.3
700
333
2.1
59,295
15,138
3.9
Potato
Lint Cotton
Tomato
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California AT “Applied” in India
Crop
Indian Average
CACS in India
25-30 tons/ha
80-86 tons/acre
Lint Cotton
432 kg/ha
985 kg/ha
Egg Plant
17.5-20 tons/ha
60 tons/ha
0.5 kg/vine
1.23 kg/vine
Tomato
Black Pepper
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Raising Crop Productivity





Soil preparation
Plant nutrition
Water management
Pest management
Time & schedule management
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Deep Soil Ploughing for Rainwater
Harvesting

Indian farmers plough soil only 6 to 8” deep, resulting in
dense packing of earth that prevents rainwater and
crop roots from penetrating into the earth, leads to
flooding of crops, and stunts plant growth.

Deep ploughing enables soil to capture rainwater,
recharges groundwater, prevents run-off, enables root
systems to grow deep, increases crop productivity. This
reduces need for irrigation to as low as 20%.
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Normal Indian Soil
Rainwater cannot penetrate deepr or
drain, so it floods roots & evaporates
rapidly. The flooding prevents plant
roots from breathing, which is
essential for absorption of nutrients.
6”
Crop
Hard Pan
Roots cannot penetrate so
plant growth is stunted.
Plants are small, weak,
needs frequent irrigation &
gives low yield.
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Deep Soil ploughing
Roots sink deep to reach
perennial water supply &
nutrients. Plant grows large,
strong & highly productive.
36”
Crop
Soft Pan
Rainwater stored deep down where
it will not easily evaporate & is
available to plants for months
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Balanced Soil & Plant Nutrition

Plants require more than 12 essential nutrients to generate
healthy and productive growth.

Without these 12 nutrients, genetic potential of hybrid seeds
cannot be tapped.

Same hybrid rice seed generates 2.8 tons per hectare in India, 5.4
tons in China and 8 tons in USA.

In India, soil is being tested for only three nutrients.

Methods employed in India for application of fertilizers lead
to low absorption, high wastage and high cost.

Advanced methods can triple or quadruple the productivity of
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the same hybrid seed.
Rotate & Mix Cropping Patterns

Rotate 3 different crops for 3 seasons every year (1 year example)




Vegetable in fall
Maize in spring
Pulse in summer
Mixed cropping (10 acre example)







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3 acres maize, tapioca, sugarcane or sugar beet for ethanol
1 acre banana
1 acre vegetable
1 acre pulses for edible oil
1 acre mango, neem or amla orchard
1 acre Casuarina (irrigated or dry
1 acre jatropa (dry) for fuel oil
1 acre Paradise tree (dry) for edible oil
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Assured Agro-Industrial Markets



Energy
Edible Oil
Other commercial crops
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Energy is an unlimited market

India needs energy – demand for power & oil will triple by 2020

Shift to renewable energy for energy self-sufficiency

Electrical power can be produced from biomass

Bio-fuels are cost-effective source of renewable energy &
reduce dependence on coal & imported oil
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Projected Power Demand by 2020
1997
BAU 2020
BCS 2020
1400
1200
1000
800
600
400
200
0
Industry
Transport
Agriculture
Commercial
Residential
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Total
Biomass Power Generation

Utilise paddy straw, cane waste, begasse

Cultivate energy plantations -- casuarina, bamboo, prosopis and
others on rain-fed and irrigated lands

Power plants of 6-25 MW size

Capital investment Rs 3 crores per MW vs. Rs 5 crores for thermal
power

20 units in AP alone with 20 more licensed

Tamil Nadu planning for hundreds of units

Cost per unit Rs 2.50 based on biomass at Rs 800 per ton
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Strategy & Benefits of Biomass Power





Develop 10 million hectares of energy plantation
crops such as casuarina, eucalyptus & bamboo
Establish 4000 decentralised power plants
Generate 40,000 MW of power
Create year-round employment for 5 million
people
Reduce transmission losses & support rural
industries.
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Projected Oil Demand by 2020
1997
BAU 2020
BCS 2020
Total
Domestic
Commercial
Agriculture
Transport
Industry
Power
0
50
100
150
Projected demand for oil in million tonnes
200
250
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Bio-Fuels – Jatropa Curcas





Dry land crop from Africa
Seeds which contain up to 35% oil
Oil is a substitute for No.2 diesel & kerosene
Blend in diesel motor fuels up to 15%.
Cost is competitive with other fuel oils.
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Strategy & Benefits of Jatropa

Cultivate 5 million hectares on wastelands

Establish 1250 oil expeller units

Produce 3.75 million tons of fuel annually
valued at Rs 7500 crores
Create year-round employment for 2.5 million
people.

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Bio-Fuels – Ethanol




Ethanol is clean burning, pollution free fuel.
Ethanol-petrol fuel blends are utilized in more
than 20 countries, including Brazil, Canada,
Sweden and USA.
USA consumes 4 billion liters of ethanol as
motor fuel per annum.
Brazil consumes more than 16 billion liters
annually & meets 41% of total demand for
transport fuel
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Ethanol in India




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GOI has already approved 5% ethanol-petrol fuel blend
Ethanol can be approved for use up to 10% mix with
both petrol & diesel in unmodified vehicle engines.
India consumes 40 million tons of diesel & 6 million tons
of petrol annually. A 10% blend would require 4.6 million
tons per annum.
With engine modification, much higher ethanol blends
can be utilized, created a potential demand for more
than 10 million tons per annum.
Total current production of ethanol in India (primarily
from molasses) is 1.3 million tons, of which 50% is used
for industrial purposes and 50% for potable purposes.
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Ethanol Production





Molasses – India has 2 million ton surplus
Sugarcane – India has 10 months supply of
sugar
Maize
Tapioca
Sugar beet – can produce 50% more fuel per
acre per year consuming only 40% the water.
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Strategy & Benefits of Ethanol



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Cultivate 0.5 million hectares of addl fuel crops
250 ethanol production units
Produce 6 million tons ethanol, value Rs 11,000 crs
Create 2.25 million rural jobs
Reduces dependence on imported fuels
Creates an alternative market for sugarcane to
reduce sugar surplus
Stimulus to rural industrialization
Reduce pollution from petrol-based motor fuel
Boost rural electricity generation from begasse &
provide local source of power for industrialization
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Meet India’s demand for Edible Oil

India imports Rs 10,000 cr of edible oil / year

Paradise tree is rainfed, oil-seed crop from Brazil containing
50% edible oil

Cultivate 5 million hectares of Paradise Tree

Establish 1250 oil expeller units

Produce 3.75 MT of edible oil worth Rs 11,000 crores

Create 2.5 million year-round jobs
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Other Agro-Industrial Crops

Corn oil, corn flakes, corn syrup, fructose, chicken &
cattle feed, and many other foods and industrial
chemicals from maize

Fruit juices, pulp and dried fruits from mango,
guava, pineapple, grapes, etc.

High protein foods from beans

Herbs & Medicinal plants such as amla, neem
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Generate 3000 Agro-Industries

250 – 4000 MW Biomass Power Plants

1250 – Oil extraction units for jatropa fuel oil

1250 – Oil extraction units for edible oil from Paradise tree

250 – Ethanol plants
Based on registered crops on sugar factory model
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Summary of Benefits





Create 13 million farm & non-farm jobs
Generate 40,000 MW of power
Produce 18,000 crores of biofuels
Meet India’s total demand for edible oil
Increase agricultural GDP by 35 to 50%
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