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Home > India > Business > Special







Rebooting the Indian green revolution



Amy Yee in New Delhi | May 03, 2008



Ajit Singh, a farmer in the poor northern state of Uttar Pradesh, had never seen a computer until four years ago when ITC, the Indian agribusiness-to-hotels conglomerate, installed a PC in his village, Kurthia.



Now the thin 47-year-old farmer visits the ITC station, known as an "e-choupal" after the Hindi term for "gathering place", every day for online access to news­papers, crop prices, weather forecasts and farming techniques. As ITC's village manager, he passes on what he gleans to fellow farmers.



Knowing the fair market value of crops allows farmers to fetch better prices and circumvent local traders who used to dictate terms. Farmers can also sell wheat and other crops to ITC.



The result has been a big jump in crop productivity. Annual incomes in Kurthia have risen from Rs40,000- Rs50,000 ($1,000-$1,230) before e-choupal to Rs100,000- Rs120,000 now, says Mr Singh.



ITC has rolled out 6,400 e-choupals across India since 2000. The initiative has gained new relevance as New Delhi urgently tries to tackle threats to food security, the growing gap between rich and poor and stagnant agricultural growth that has added to soaring food prices.



India "needs another green revolution", the UN Economic and Social Commission for Asia and the Pacific (Unescap) recently urged. "Growth and productivity in agriculture are slowing, and the green revolution has bypassed millions."



India has the most to gain from improvements in agriculture because it is home to nearly two-thirds of Asia's poor, most of whom rely on farming, Unescap said.



Middle-class Indians are eating more and better food. Yet its population of 1.1bn is growing at about 1.4 per cent and food grain production increased just 0.9 per cent last year, according to ministry of agriculture statistics.



Agricultural growth has steadily decelerated because of years of under-investment as attention has focused on high-growth manufacturing and service industries.



But big strides can be made with relatively simple measures. In Kurthia, which is 40 km from the bustling holy city of Varanasi, the e-choupal consists of a computer in a modest house rigged with a small satellite dish. Farmers pose questions that are e-mailed to ITC ­agricultural scientists and experts at agricultural ­institutes.



Yogesh Bhrigulanshi, a farmer and the ITC local manager in nearby Bisuari village, says rice yields have risen 70 per cent, to 3,900kg per acre, since the arrival of the e-choupal. "We used to use fertiliser without any knowledge," says Mr Bhrigulanshi. "We used to use pesticides for any disease on plants. Now we know which pesticide to use and if it needs to be used."



ITC plans to invest $1bn on e-choupals in the period to 2015 to connect farmers to information, products and services. The hope is that as rural incomes rise, farmers will buy more products and services, ranging from seeds and fertilisers to insurance and healthcare.



Rural standards of living have improved. Mr Bhrigulanshi bought his second mobile phone last month and two years ago purchased a television. His 11-year-old son, wearing a white uniform and striped blue tie, goes to an English school that costs Rs25,000 ($625) per year. That compares to the $7 annual cost of his previous government school.



There is still a long way to go. Farmers say there has been little improvement in roads, electricity and water over the years. Government agricultural subsidies for fertiliser, pesticide and equipment do not reach them. Subsidies should be provided through private parties, Mr Singh suggests.



They remain sceptical of the Indian government's recent promises to invest heavily in agriculture and waive $15bn (Euro 9.7bn, 7.6bn pounds) worth of loans to farmers. Writing off bad loans means "defaulters benefit. Those who have paid do not have any benefit," opines Mr Bhrigulanshi.



"Government always talks about farmers when elections come," adds Mr Singh. "But practically, we are not seeing anything."



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