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					        Chapter - Six



Private Extension through
 Agricultural Consultancy
                                     Case Studies on Private Extension
                                                                                        Saravanan, R.*


      Changing scenario in Indian agriculture from mere subsistence farming to
commercialized farming has been witnessed during 1990s. Entry of people from
industrial sector, non-professional agriculturists, the educated elite and others
to take up agriculture has been led to the demand of timely and technically
sound advice with reliable market oriented agricultural information. This
situation paved way for the emergence of private agricultural consultancies
to meet the present needs and future challenges of agriculture.




CASE STUDY - I

Status of functioning of the two private consultancy agencies in Coimbatore
district of Tamil Nadu

(Saravanan and Shivalinge Gowda, 2000)

      Two registered agricultural consultancy agencies in Coimbatore district of
Tamil Nadu state were selected for the investigation. With the help of
structured interview schedule the required information was collected during
March 1999.




* Ph.D. Scholar, Department of Agricultural Extension, UAS, GKVK, Bangalore – 560065.


Private Extension: Indian Experiences                                                           175
The Functioning of Selected Two Private Agricultural Consultancy Agencies
Profile characteristics
                          Consultancy Firm-I                                   Consultancy Firm-II
of consultancy
1. Name                   PAN HORTI CONSULTANTS (P) LTD®                       VIJI-HI-TECH: Agri-Horti
                                                                               Liaison Project®
2. Head Quarters          Coimbatore                                           Coimbatore
3. Year of Establishment 1997                                                  1998
4. Objective              To transfer technology in Horticulture               To transfer technology
                          and allied aspects                                   in agriculture and allied
                                                                               aspects
5. Organization           MD (Tech. Person), AM (Tech. Person)                 Single technical person
   structure              T.Ps (Tech. Person), Office Executive
6. Network                District - State - National - International level    District level
7. Staff Salary pattern   M.D – 3.5 lakh/annum, A.M – 1.2 lakh/annum
                          T.P – 0.6 lakh/annum, O.E – 0.36 lakh/annum
8. List of technologies   i.    Agri-Horti Business                            i) Seed production
   and allied aspects     a.    Land purchase, b. Feasibility assessment       ii) TOT in all crops
   covered                c.    Project appraisal, d. Input management         iii) Orchard development
                          e.    Management Information, f. Farm audit system   iv) Mixed farming
                          g.    Total quality Management                       v) project formulation
                          h.    Geographic Information
                          ii.   Orchard plantation Development
                          a.    Land sourcing, b. Hydrological studies
                          c.    Soil and water quality assessment
                          d.    Infrastructure Development
                          e.    Production packages
                          iii. Nursery technology
                          a. Plant material sourcing, b. Mother plant
                          selection, c. Nursery evaluation, d. Propagation
                          packages, e. Climatologically manipulation
                          f. Commercial nursery establishment, g. Tissue
                          culture technology
                          iv. Vegetable cultivation
                          a. Seed production, b. Seedling production
                          c. Vegetable forcing, d. Off-season production
                          e. Plastic culture
                          v. Floriculture
                          a. Commercial floriculture, b. Landscape architec-
                          ture, c. Ornamental gardening, d. Cut-flower
                          production, e. Essential oil production

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Profile characteristics
                          Consultancy Firm-I                                 Consultancy Firm-II
of consultancy
                          vi. Green house technology
                          a. Construction and erection, b. Climate control
                          c. Semi automation, d. Computerization
                          e. Production packages
                          vii. Irrigation management
                          a. Water budgeting, b. Drip technology
                          c. Sprinkler technology, d. Fertigation
                          e. Water harvesting, f. Conservation technology
                          viii. Cold storage
                          ix. Plant protection (pest and disease control)
                          measures in field crops and horticultural crops
                          x. Seed production in field crops
                          xi. Animal husbandry dairy
                          xii. Poultry
9. Information source     Agril. University, Journals, Seminar and           Agril. University, Journals,
                          Symposia, Internet, TV, Radio, Newspaper           TV, Radio, Newspaper
10.Communication          Personal contact, Telephone, E-mail, Fax           Personal contact
   methods
11.Pattern of             1.5% of total cost/project +                       2% of total cost/project
   charging fee           1% consultancy charge                              or Rs. 100-200/visit
12.Clients                Industrial people, commercial firms, Agro-based    Farmers (10)
                          industries (40), Big-farmers (12)
13.Problems               i) Only few big farmers and more                   i) Farmers mostly
                          non-agricultural people are approaching            approaching consultancy
                          the consultancy                                    for ‘project proposal’
                          ii) Lack of fixed price policy for agricultural    and not for technology
                          commodities will in turn affect the                ii) Some farmers are
                          consultancy service                                approaching consultancy
                          iii) Lack of assurance about commercialization     for technologies but,
                          of agriculture among farmers                       they are not willing to
                                                                             pay for the services.


    Pan Horti Consultants (P) Ltd. (registered) started during 1997 in Coimbatore
(Tamil Nadu) by an eminent Professor of Horticulture (MD of Consultancy).
He was working in TNAU and he took voluntary retirement and started the
consultancy service. Prime objective of consultancy was to transfer technology

Private Extension: Indian Experiences                                                             177
in horticulture and allied aspects. Within 2 years, the agency was well
established with respect to technical personnel and network system. Agency
recruited post-graduate and under graduate personnel from horticulture and
agricultural disciplines. The organization had a few general degree graduate
(B.Com degree holder) as Office Executives. The agency posse’s international
and national level collaboration with other agri-horti consultancies. In state
level it has a clear network through the collaboration with other scientists
working in different parts of the state. More specialized technologies are
transferred with the help of subject matter specialists such as irrigation
specialist, horticulturists, entomologists, etc. are associated with the consultancy.
The important information source for the consultancy service includes agricultural
university, TNAU Library, seminar, symposia, Internet, TV, radio and newspapers.
In the early stages of project formulation personal contacts were widely used,
while in the later telephone, e-mail and fax were used for communication.
One and half (1.5%) percent of total cost per project in addition to this one
per cent consultancy fee charged from the clients. Industrial people, commercial
firms, agro-based industries are the main clients (around 40 clients upto March,
1999) and few big farmers (12) are also clients of this consultancy. Following
problems are expressed by the consultancy. They are, only few big farmers
and more non-agricultural people approaching the consultancy, lack of fixed
price policy for agricultural commodities will in turn affect the consultancy
service and Lack of assurance about commercialization of agriculture among
farmers.

Viji Hi-tech: Agri-Horti Liaison Project (registered) started by a retired
Professor of Entomology in Coimbatore (Tamil Nadu) during 1998. With the
main objective to transfer technology in agriculture and allied aspects was
the main objective of the consultancy unit. It was operated by a single technical
person, mainly concentrating in and around Coimbatore district. Consultancy
aims to cover, transfer of technology in all crops of agriculture and horticulture.
However, project formulation was the main area attracted some clients. This
‘project proposal’ mainly used for getting the loan from nationalized and other

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financial institutions. Agricultural university library, TV, radio and newspaper
served as the main information sources. Personal contact was widely used by
the consultant. Two percent of total cost per project or Rs.100-200 per visit
was collected as consultancy fee. Consultant made very few visits to farmers
field in relation to seed production and pest control. He opined that, farmers
mostly approaching consultancy for ‘project proposal’ and not for technology
and some farmers are approaching consultancy for technologies but, they are
not willing to pay for the services.

    Both the consultancy agencies, expressed that generally farmers are not
approaching for consultancy services. However, they opined that their consultancy
agencies have appreciation of the services rendered to their clients representing
commercial firms, agro-based industries and entrepreneur farmers.



CASE STUDY - II
Private Agri-Clinic in Bangalore, Karnataka

(Saravanan and Resmy, 2000)

    To meet the agricultural technical information needs of people, in recent
past many registered private agricultural consultancy agencies are emerging
in the “Garden City of India”, Bangalore. A clean and spacious city, it enjoys
an equable climate and rich wealth of colorful vegetation. Over the years,
charm of garden city added through the establishment of gardens in the
premises of houses, layouts, industrial and commercial firms etc. This environment
provides ample opportunities to private agricultural consultancy agencies,
mainly in the area of garden development and maintenance. One such private
agricultural consultancy (Grow More Agri-Clinic, Bangalore) was investigated
and required information was collected through personal interview method
during June 2000 with the main aim of understanding the functioning of
consultancy.



Private Extension: Indian Experiences                                       179
Profile characteristics of agri-clinic
1. Name of the consultancy       :   Grow More Agri-Clinic‚
2. Office                        :   Bangalore
3. Year of establishment         :   1995
4. Objective of consultancy      :   To transfer the technology in agriculture and allied aspects
5. Technologies and allied       :   Garden development and maintenance. Consultant for
   aspects covered                   orchards and plantations on contract basis. Pest control
                                     for domestic purpose. Providing garden plants on hire basis
6. Staffing and salary pattern   :   Technical person (B.Sc. (Agri) graduate)
                                     Rs. 25,000 - 30,000 / month
                                     Others
                                     1. Supervisor (1) Rs. 3,000/month
                                     2. Maistery (1) Rs. 2,500/month
                                     3. Regular labourers (30)
                                     Men (12) Rs. 1600/month/person
                                     Women (18) Rs. 1000-1200/month/person
7. Area of coverage              :   Bangalore
8. Pattern of charging fee       :   Garden development - Turnkey basis depending upon
                                     and design of garden. Eg. 20 x 30 m site -
                                     Rs. 30,000 (with lawn and water fall); Maintenance of
                                     garden Rs.2500/month (4 visits); Pest control and
                                     maintenance for orchard and plantations; 4 visits/
                                     month Rs.1000-2500/visit; Pest control domestic
                                     purpose; Disinfection - 0.5 p / sq. feet; Rodent
                                     control - 0.10 p/ sq. feet; Contract basis; Rs.3000/
                                     month/building; Providing garden plants on hire basis
                                     Indoor plants - Rs. 1.00/day/plant
                                     Outdoor plant - Rs.0.50/day /plant
9. Clients                       :   Garden development and maintenance Individuals,
                                     Govt. offices, Private firms, Industrial areas etc.
                                     Orchards and plantations Orchards and plantations of the
                                     commercial firm holders.
                                     Pest control for domestic purpose Buildings of Govt.
                                     office, Corporate buildings such as banks etc.
                                     Garden plants on hire basis Government and
                                     private office
10. Communication method         :   Personal contact
11. Information source           :   Agricultural University, UAS, Bangalore, IIHR, Bangalore

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Observations
    Grow more agri-clinic performs successfully and generally serves for non-
agricultural sector people. But, very few farmers are approaching for consultancy
service, even through; they are reluctant to pay for the service. Clinic is located
at centre of city; it might be one of the reasons for farmers not approaching
the consultancy. Consultant has also not taken any efforts to make publicity
about consultancy among farmers.


CASE STUDY - III
Private Agricultural Consultant: “Jamnalal Bajaj Awardee - 1997”
(Saravanan et al., 2000)
    This case study narrates the committed extension work of Prof. S.S
Katagihallimath born on 4 th May, 1919 at Guttal village of Haveri district in
North Karnataka. He had his early education in his hometown and obtained
his B.Sc. degree (Botany and Zoology) from Mysore University. Later he
completed post-graduate degree with specialization in Entomology from Bombay
University. He was specialized in the areas of biology, pest and disease
management in crops like jowar, cotton, oilseeds, sugarcane and paddy.

Research and Extension Service
    On 22nd August 1945 he joined as a demonstrator in the Department of
Entomology and Zoology in Bombay University, Pune. After one year he was
promoted as a lecturer. In 1947, March 26th he was appointed as 1 st Grade
Lecturer in Agricultural College, Dharwad under the Karnataka University. In
1965, he was promoted as professor and Head of the Entomology department.
In the same year (1965) he was selected as Agricultural Officer in the state
Department of agriculture, Karnataka and opted to serve in the KSDA. After
some time he was appointed as principal of Rural Development Training Center
(RDTC). In the rural development and training center, he had framed 3 types
of training programmes for better extension work. They were six months


Private Extension: Indian Experiences                                        181
duration extension course for gramsevaks, one year higher training for gramsevaks
and 15 days to 3 months training for farmers.

    Under the Applied Nutrition Programme (ANP) sponsored by FAO through
department of agriculture, he conducted 15 days training programme for Block
Development officers (BDOs), President and members of TDB, 30 days training
for schoolteachers and training for panchayat chairman and members. He
conducted peripatetic (off-campus) and institutional (on-campus) trainings.
Designing and development of ANP gardens in taluk places especially on Social
Forestry and farm forestry were important activities under ANP programme.
He also served as an In-charge Coordinator for National Demonstration Scheme
(NDS) programme emphasizing on multiple cropping.

    In 1971 he was appointed as a state Entomologist, he had also held the
additional charges of State Agronomist and State Pathologist. After rendering
his services as a state Entomologist for over a period of 3 1/2 years he
retired from Government service on 31 st May 1974. After retirement he
served as a principal and technical consultant for Agricultural School and
development of non-fertile land in Gadag district for Christian missionary.
He says that multiple cropping under NDS programme provided clear insight
and complete picture of agriculture from seed to harvest. ANP garden
development programme made him to learn more about horticultural crops.
His experience in previous capacities provided rich knowledge on agriculture
and allied aspects. Thirty years of active and committed service in the KSDA
provided him a rich experience and competence to serve in the sphere of
agricultural development. After retirement he has been working as an honorary
agricultural consultant for individual farmers, in the areas of plant protection,
multi-storied cropping, relay cropping and complete package of practices to
all horticultural crops. He never used to demand the consultancy fee from
farmers. However, based on farmers will and pleasure they were providing
honorary fee ranging from Rs. 100-500 per visit. They were also used to provide
transportation facility for the specialist. Presently his area of operation is


  182                                                                    MANAGE
confined to Kolar and Bangalore (north and south) districts because of his
old age problem.

    He is also serving as a technical consultant for many commercial firms
and agro-based industries. His main area of consultation includes garden
development and maintenance. Generally, they pay Rs. 500 per visit. For garden
maintenance he usually visits one time per month. Clients provide the transportation
facility. He claims that, in and around Bangalore, so far, he has given guidance
for developing more than 1000 gardens. Majority of the clients were represented
from commercial firms, agro-based industries and about 10-15 farmers.

    He has been a professional writer and an author of many scientific papers
and popular articles. He served as an Editor of ‘Krishi Varthe’ agricultural
monthly in Kannada. He was one of the leading popular article writers in
respect of agricultural technologies in kannada dailies and magazines. His
writings were need based, timely and farmer’s problem oriented.

    He has also started “ Free Plant Clinic” to the needy farmers for agricultural
consultancy in Bangalore. The mode of functioning is that in every week on
a specified day, two hours farmers meet forum is organized. The forum attempts
to provide solutions for farmer’s problems. He is the chief scientist of the
forum.

    He believes that “Extension work-not by words, it is through action.”
He says that professional competency and demonstrating ability are the key
factors in the success of agricultural extension work.

    Even at the age of 82 years, he is serving for the cause of farming
community as a technical consultant. His commitment and dedication towards
farming community made him to achieve number of awards. Some of those
include, ‘Karnataka Rajyothsava Award-1993’ for development of science
(Agriculture and Horticulture), ‘Jamnalal Bajaj Award-1997’ for transfer of
science and technology for rural development and ‘Allamashri Award-1999’
for helping farmers to grow more.

Private Extension: Indian Experiences                                         183
CASE STUDY - IV
Agricultural Consultancy Services from Canara Bank
(Saravanan, 2000)
    In India, with recent liberalization measures and greater thrust on exports,
agriculture is on the thrush hold of a dynamic growth. This throws of
opportunity and challenges. To tackle this challenges and promote better agro-
enterprises, by making best use of the available opportunities, agricultural
consultancy services from Canara Bank, Bangalore started in 1988. Agricultural
consultancy services functioning in the Canara Bank with the prime objective
to offer consultancy services in agriculture and allied activities, food processing,
agro- industries and non-farm sector projects.

Clientele coverage and services offered
 Clientele                       Services offered

 Individual clients              Project formulation, Project appraisal
 Institutions                    Socio-economic surveys, Market Research, Business plans
 (Developmental agencies,        and Corporate strategy, Evaluation studies
 commodity boards, etc.,)
 Financial Institutions          Training, Block plans, Research and Development, Action
                                 Plans, Project appraisal, Rehabilitation package for sick
                                 units, Viability studies
 Food processing                 Input supply studies
 Agro-based industries           Backward linkages, appropriate technology
 Target groups/weaker sections   Identification of areas/ issues affecting them. Evolving
 (Group action projects)         strategies to upgrade quality of their life

    Agricultural Consultancy Services (ACS) covers following sectors, Farm
management, Cold Storage, Agro-industry processing facilities, medium & small-
scale industries and seeds.

Network of Agricultural Consultancy Service
    A net work of over 2000 branches of Canara Bank spread all over the
country enables ACS to offer services of over 1000 agriculture graduates, who


  184                                                                             MANAGE
are highly qualified and experienced are available to cater the needs of clientele
throughout the country. More than 50 acknowledged experts in different
disciplines of agriculture are impaneled to fine-tune the projects.

Agricultural Consultancy Services – Tariff
 Outlay                                       Service charges
 PROJECT FORMULATION
 Above Rs.2.00 Lakhs & upto &                 Rs.2,000/-
 inclusive of Rs.5.00 lakhs
 Above Rs.5.00 Lakhs & upto &                 0.5% of project outlay with a minimum
 inclusive of Rs.10.00 crores                 of Rs.5000/-
 Above Rs.10 crores                           Rs.5.00 lakhs + 0.25% of project outlay
                                              in excess of Rs.10.00 crores
 PROJECT APPRAISAL
 Above Rs.2.00 Lakhs                          1/3% of project outlay with a
                                              minimum of Rs.5000/-
 PREFEASIBILITY REPORT
 Above Rs.2.00 Lakhs & upto &                 Rs.5000/-
 inclusive of Rs.50.00 lakhs
 Above Rs.50 lakhs                            1/10% of the project outlay with a
                                              maximum of Rs.1.00 lakh


Number of assignments and earnings from ACS, Canara Bank, Bangalore
            Year               No. of Assignments           Earnings (Rs. In Lakhs)
           1988-89                       7                            0.13
           1989-90                      20                            1.85
           1990-91                      24                            6.80
           1991-92                      29                            1.28
           1992-93                      32                            5.02
           1993-94                      30                            3.65
           1994-95                      57                           18.55
           1995-96                      57                           71.12
           1996-97                      42                           20.48
           1997-98                      31                           17.00
           1998-99                      24                           16.00
          1999-2000                     22                           19.00
          12 Years                      375                          180.88


Private Extension: Indian Experiences                                              185
Mode of Availing Services of Acs
     For project formulation, clients can contact nearest Canara bank Branch and
they will send a data sheet to ACS in consultation with clients. For other services
(except project formulation), ACS will directly negotiate with the clients. Services
of ACS are available to other banks/ clients also on the same terms and
conditions. ACS does not extending tied consultancy. It would be objective in
its assessment. Hence, the rate of acceptance is high subject to priorities.
    Canara Bank ACS has been empanelled as consultant to Asian Development
Bank, African Development Bank, and GTZ, Germany. Services are being lent
to NABARD and Indian Institute of Management, Ahmedabad.
     More than one decade of agricultural consultancy service from Canara Bank
clearly indicates that, mostly commercial firms, agro-based industries and
institutions are approaching for consultancy services.

Reference
Saravanan, R. 1999. A study on privatization of agricultural extension service.
     M.Sc. (Ag. Extension) thesis (unpublished), Department of Agriculture
     Extension, UAS, Bangalore.
Saravanan, R., 2000. Agricultural Consultancy Services from Canara Bank.
     Presented at National Seminar on Private Extension: Approaches and
     Challenges in the Millennium. July 28-29, 2000. MANAGE, Hyderabad.
Saravanan, R. and Resmy, C., 2000. Private Agri-Clinic: A Report. Presented
     at National Seminar on Private Extension : Approaches and Challenges in
     the Millennium. July 28-29, 2000. MANAGE, Hyderabad.
Saravanan, R., Gowri Sankara Rao, A. and Shivalinge Gowda, N.S., 2000. A
     Case analysis of private agricultural consultant: “Jamnalal Bajaj Awardee–
     1997”. Presented at National Seminar on Private Extension: Approaches
     and Challenges in the Millennium. July 28-29, 2000. MANAGE, Hyderabad.
Saravanan, R. and Shivalinge Gowda, N.S., 2000. Status of functioning of the
     two private consultancy agencies in Coimbatore district of Tamil Nadu.
     Presented at National Seminar on Private Extension: Approaches and
     Challenges in the Millennium. July 28-29, 2000. MANAGE, Hyderabad.

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