Soybean Report
Soybean Report
Soybean Report
Project on
SOYBEAN
SOYBEAN
Agriculture Division
The team would like to acknowledge inputs and expert guidance received by Dr S K Goel, Additional Chief
Secretary, Government of Maharashtra. The team also wishes to acknowledge the support of Mr Umakant
Dangat, Agriculture Commissioner, Maharashtra, Mr A. K. Haral, Chief Coordinator, PPPIAD and Joint
Director Agriculture, Commissionarate of Agriculture, Pune, Shri Uday Deshmukh-Project Coordinator,
Pulses and Oilseed value chains and Principal, Agriculture Extension Management Training Institute,
Pune.
A special note of thanks to Dr. Martin Kropp, Managing Director, ADM, Mr. T. P. Shenoy, Head, Agriculture
Produce Services Division, ADM India and officials of ADM team especially Mr Amol Dhawan for their
support in conducting the study.
Team would also like to acknowledge special thanks to PPPIAD farmers for giving valuable feedback
regarding PPPIAD scheme.
The team benefitted from in depth interviews with PPPIAD farmers, government officials and officials
from ADM.
Table of Content
1. Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
9. Impact Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
11. Photographs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
12. Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
13. Annexure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
1
Executive Summary
1
Executive summary
Maharashtra is the first state in India to implement projects under the Public-Private Partnership for
Integrated Agriculture Development (PPPIAD) scheme. In 2012, the State Department of Agriculture
rolled out projects focusing on improving value chains for crops as well as developing integrated value
chains for specific crops through public private collaboration and co-investment. In the first year the
partnership was rolled out with the aim of reaching out to at least 200,000 farmers in the state.
FICCI undertook the evaluation of Soybean project implemented by ADM in year 2012-13 and 2013-14.
The objectives of the study were to assess the outcomes in terms of increase in productivity of Soybean,
improvement of farm incomes; document the processes of linkage of farmers with input and output
markets; and to identify the processes that enable a successful partnership between the Government,
private industry and farmers.
The project on Soybean aimed at improving the standard of living of small and marginal Soybean growing
farmers by enabling/empowering them to be self-reliant through supply of high yielding planting
materials, providing agronomic support, assisting in adopting advanced agri practices, providing market
linkages, and sharing experiences of research and development in Soybean cultivation.
ADM has set up a very efficient and meaningful extension program over the past 8-9 years in Latur to
disseminate new technologies to small and marginal farmers. Careful observation of several initiatives
reveals that these efforts were not beneficial merely in terms of productivity but helped farmers with agri
input, resource conservation, better extension services and market linkages. The results of this highly
successful farmer program are evident in the fact that the Soybean acreage has grown from 7,000 ha in
2001 to 3.80 lakh hectares in year 2014-15 (Kharif season).The yield per hectare of soybean increased to
1.8 MT / Ha against the national average of 1.2 MT/ Ha.
The project has been able to enhance the productivity of Soybean by (a) distributing certified varieties of
high yielding varieties of Soybean such as DS 228 and MAUS 71 which gave incremental yield of 20-30%
(806 qtl of certified seed distributed in year 2013-14) (b) training and skill development of farmers and
FPOs for seed production programme (total 418 ha of area is covered under seed production programme in
year 2013-14) (c) providing end to end mechanized solutions for soybean cultivation which led to 25%
increase in yield for Soybean crop.
Regular advise on extension services by ADM officials at each ADM Extension centres known as KVKs
(Krishi Vigyan Kendras) has contributed to the adoption of best practices in Soybean cultivation. Some of
the major initiatives taken under front line demonstrations include (a) educating farmers about soil test
based fertilizer application (b) seed treatment prior to sowing etc. ADM has also facilitated SMS service to
more than 3000 lead farmers. Training farmers on seed production was one of the major initiatives under
extension programme.
There is a well-defined institutional mechanism created both at the Government and at the company level
to oversee the implementation and monitoring the progress of the project with periodic reporting and
assessment across all levels. PPPIAD project has created a framework where the Government and the
private company have worked in tandem, supporting the development of the back end supply chain along
with providing the market linkage opportunities to the Soybean growing farmers.
Based on the interactions during primary survey, two important initiatives which had tremendous impact
on strengthening value of Soybean are as under:
• Labor consists 30%of the total cost of Soybean cultivation for a one acre land. Mechanization is
a logical choice when the country is looking for ways of managing agriculture labor concerns.
Introduction of new farm implements in Soybean cultivation which led to end to end mechanized
solutions led to net saving of 30% in Soybean cultivation, 25% increase in yield and saving of Rs
640 per acre in cost of seed. Two FPOs (Farmer Producer Organizations) formed for establishing
custom hiring centres for Soybean cultivation were very efficient. There is need to promote
soybean variety fit for mechanical harvesting. The financial support provided by ADM and State
Govt of Maharashtra was very instrumental in success of this pilot on farm mechanization in
Soybean.
• Creation of market linkages by (a) Direct procurement programme by way of creating ADM kissan
cards for each farmer (b) and connecting farmers to Commodity exchange were very impactful.
Farmers saves 2% cost by selling directly to ADM. 104810.4 MT of Soybean was procured by ADM in
year 2013-14 (from Oct’13 to Sept’14) and 78612.95 MT (from Oct’12 to Sept ’13) under direct
procurement programme. Pilot project on warehousing cum marketing of Soybean through spot
exchange has been able to raise farmers income by 35%.
Overview of Soybean
Soybean has an important place in world's oilseed cultivation scenario, due to its high productivity,
profitability and vital contribution towards maintaining soil fertility. The crop also has a prominent place
as the world's most important seed legume, which contributes 25% to the global vegetable oil production,
about two thirds of the world's protein concentrate for livestock feeding and is a valuable ingredient in
formulated feeds for poultry and fish.
About 85% of the world's soybeans are processed annually into soybean meal and oil. Approximately 98%
of the soybean meal is crushed and further processed into animal feed with the balance used to make soy
flour and proteins. Of the oil fraction, 95% is consumed as edible oil; the rest is used for industrial products
such as fatty acids, soaps and biodiesel.
The major soybean producing nations are the United States, Brazil and Argentina. The three countries
dominate global production, accounting for 80% of the world's soybean supply.
Global production of Soybean has grown at a CAGR of 2.78% from 215.69 million metric tons in 2004-05 to
283.79 million metric tons in 2013-14.
150
100
50
0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2011-12 2012-13 2013-14
Source: USDA
ina
dia
es
il
In
nt
Ch
Sta
Br
ge
d
Ar
ite
China
2.95% 16.92% European Union
3.85%
Mexico
12.91% 63.37%
Japan
Others
Source: USDA
Soybean contributes significantly to the Indian edible oil pool. Presently soybean contributes 43 % to the
total oilseeds and 25% to the total oil production in the country. Currently, India ranks fourth in respect to
production of soybean in the world. The crop helps earn valuable foreign exchange (Rs. 62000 millions in
2012-13) by way of soya meal exports.
Soybean has largely been responsible in uplifting farmer’s economic status in many pockets of the country. It
usually fetches higher income to the farmers owing to the huge export market for soybean de-oiled cake.
While on one hand production of Soybean in India has increased at a CAGR of 9.60 per cent from 6.87 million
tonnes in 2004-05 to 15.68 million tonnes in 2012-13. On the other hand Soybean meal consumption has also
increased at a CAGR of 10.82 per cent over the last eleven years from 1365 thousand million tonnes in 2004-05
to 4225 thousand million tonnes in 2014-15. Therefore to keep pace with the increasing demand it is
imperative to increase the productivity level of Soybean in the country. The graph below shows that there is
ample scope for improvement of productivity of Soybean crop in India when compared to other benchmark
countries.
2.71 2.74
2.52 2.31
1.74
1.08
Source: FAOSTAT
15.68 13.05
12.17
13.6 11.72 11.56
13.04
9.51
10.97 10.64 8.88
9.91
2007-8 2008-9 2009-10 2010-11 2011-12 2012-13 2007-8 2008-9 2009-10 2010-11 2011-12 2012-13
4225
4500 3900
4000 3331 3363
3500 2901
2570
3000
2500 1975
2000 1450
1500
1000
500
0
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Source: USDA
India has the fifth largest vegetable oil economy in the world. After cereals, oilseeds are the second
largest agricultural commodity, accounting for the 14% of the gross cropped area in the country. However,
country meets its edible oil demand through imports, which accounts for almost 50% of requirement. The
per capita consumption of the vegetable oil is increasing very rapidly due to increase in population and
improved economic status of the population. The demand has increased to about 12.6 kg/year compared to
4 kg/year in 1961 and the projected demand for the year 2020 and 2050 is 16.443 and 19.16 kg/year
respectively. To meet this demand, the country will require nearly 25.26 and 35.90 million tons of edible
oil. In this scenario, soybean has played and will play a pivotal role in the future.
Production of soybean in India is dominated by Maharashtra and Madhya Pradesh which contribute 89 per
cent of the total production. Rajasthan, Andhra Pradesh, Karnataka, Chhattisgarh and Gujarat contribute
the remaining 11 per cent production.
Addressing these challenges on a mission mode will not only enhance productivity, profitability and quality
of produce but will also improve the financial status of the farmers.
Agriculture in Maharashtra
Agriculture in Maharashtra including allied activities, accounted for 12.4% of the Gross State Domestic
Product at current prices in 2011-12 but its role in State's economy is much wider as agriculture continues
to be the main occupation of the state. Around 64.14% of the people are employed in agriculture and allied
activities. During the XI Five Year Plan (FYP), an average growth of 4.3% was achieved against the target of
4%. The growth target for agriculture and allied activities sector in the XII FYP remains at 4%, as in the XI
FYP.
The Maharashtra APMC Act was amended on the lines of the Model Act suggested by the Central
Government. The amendments include provisions for establishment of proper markets, some elements of
direct marketing, special commodity markets, farmers-consumers markets and single licensing system for
all APMCs. Restrictions or regulations on storage are imposed as per the directives of the Central
Government under the Essential Commodities Act.
Maharashtra has made rapid strides in reforming agriculture marketing. The amendment made to the State
Agricultural Produce Marketing (Development and Regulation) Act in 2006 has opened up the market to
competition and encouraged private investment in infrastructure development and agro- processing.
400000 380043
355400
350000
300000 265400 265000
250000 211100 217700
194500
200000 173100 183000
152800 155400
150000
112200
100000
0
-01 -0
2 -0
3
-0
4
-0
5
-0
6 -07 7-0
8
-0
9 -10 -11 1-12 2-13 -14 4-15
00 01 02 03 04 05 06 0 08 09 10 1 1 13 1
20 20 20 20 20 20 20 20 20 20 20 20 20 20 20
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Reasons for ADM commenced Amendment to APMC Net Realisation from Drought Higher Value chain development under
increase/ extension Act & Issue of Direct sugarcane & pulses was year net PPPIAD, increase in net
decrease services in the Marketing License by also good. returns realisation from soybean over
from
in area district and State Government. soybean competing crops due to
introduced ADM started direct higher awareness, higher yields.
soybean procurement.
as kharif crop
Avg Rate/Qtl 1,215 1,372 1,426 1,683 1,763 2,087 2,115 2,051 2,288 3,336 4,017
MSP Rs /Qtl 930 1000 1010 1020 1050 1390 1390 1440 1690 2240 2560 2560
Regardless of the extent of the project, it is important to measure the success of the project implemented
under PPPIAD. Undertaking a review of each project provides an opportunity to evaluate if the project is
meeting the desired objectives – increasing productivity, increasing farmer incomes, and development of
the value chain. In this review the endeavor has been to provide valuable information on whether the
project met its target objectives, the delivery of outputs and the level of project scope, time, cost and
quality. FICCI, which has been involved in the formulation of the PPPIAD guidelines with the Ministry of
Agriculture, Government of India was therefore entrusted the task of evaluating the pilot project on
increasing productivity of Soybean in Maharashtra and also for dissemination and advocacy.
The evaluation study assesses the objectives (mentioned below) set by the project team for year 2012 and
2013
1. To increase the net income to the farmer per acre of crop by – providing better quality, High-Yielding
varieties of seed, seed production programs, technology transfer and customized agri-extension
services.
2. To increase net income to farmer by providing him with an alternative marketing channel by way of
direct procurement from the farmer.
Although the growth in the area and production of soybean in India had been impressive subsequent to its
introduction as commercial crop in 1970s, the productivity enhancement could not keep pace. Low yields
and lack of infrastructure are keeping Indian soybean from realizing its true potential. Having realized the
fact that there is significant opportunity in increasing the productivity of the crop which contributes
significantly to the edible oil pool of the country, State Government of Maharashtra piloted a PPPIAD
project on improving productivity of soybean with an integrated approach.
PPPIAD project not only aims at improving productivity of Soybean, but also undertakes allied initiatives to
provide end to end solutions to farmers. Financial support provided by State Government of Maharashtra
under various interventions in PPPIAD project on Soybean is mentioned in the table above. There is a well-
defined institutional mechanism created both at the government and company level to oversee the
implementation and monitor the progress of the project with periodic reporting and assessment across all
levels.
The project combines operational efficiency of private sector and investment by public sector to bring fore
noticeable changes in soybean value chain through an integrated approach.
4. Procurements & marketing • Incur the infrastructure expenses to buy approximately 1,15,000 MT of
support Soybeans
• Procure soybeans directly from farmers under direct marketing license.
• Train the farmers on all aspects of Direct procurement through
awareness meetings
An increase in the yield of soybean could have significant impact on the livelihoods of such small and
marginal farmers. Soybean is grown as a rainfed crop in Kharif Season, as
• Soybean is a high yielding crop compared to other crops
• Water Requirement of the crop is very less (110 mm),
• Time duration is very less (3 months and 20 Days)
• Market rates of soybean are economical.
While aiming to increase the yield of soybean in major soybean producing states of the country it is
important to trace the reasons for low productivity. Few such reasons relates to non-adoption of modern
agro technologies such as plant protection technologies like sowing of seeds without treatment,
inadequate weed control, high insect pest infestation and disease infection etc. Therefore, PPPIAD project
on Soybean aimed at disseminating awareness among soybean growing farmers in Maharashtra regarding
new agro technologies in soybean cultivation.
PPPIAD project has given importance to a farmer participatory approach in implementing the set
objectives. For instance, availability of seed of improved varieties is a big concern in soybean cultivation.
Concept of farmers 'participatory approach in seed production of improved varieties of soybean is one of
the successful initiatives of the project.
3 Distribution of certified seeds • Use high yielding certified seeds and follow the best practices.
(DS-228, MAUS-71 & JS-9752)
• Maintain documentation for claiming the subsidy provided by the
government through ADM
4 Front line demonstrations • Make best use of input kits provided by ADM.
• Follow the best practices as demonstrated during training.
• Demonstrate the benefits to other farmers in the village.
5 Farm Mechanization • Make use of mechanized operations
• Save the cost
• Participate in reducing inefficiencies of manual operations.
1) Discussion with Dr. Sudhir Kumar Goel, Additional Chief Secretary, Govt. of Maharashtra: A
discussion with Dr. Goel was held in Mumbai to understand the initiation of the PPP project in the
state and get his insights on the study design and methodology.
2) Review of secondary literature and developing the set of questions: Secondary information was
obtained from the PPPIAD secretariat based in the Department of Agriculture, Government of
Maharashtra and ADM. The documents included the proposal, baseline study, progress reports and
presentations. Based on the review of literature and baseline information, focused group
discussions were organized for collecting responses from the farmers on important parameters like
inputs, capacity building, increase in yield and incomes, procurement and feedback on the delivery
of the project.
(4) Interactions with officials of Maharashtra Government and ADM officials were held to understand
the delivery of the project and elucidate responses on the project implementation, outcomes and
improvement areas. Discussions were also undertaken to understand the perception of the
government and the private sector on key areas requiring attention in scaling up the project.
5) Collation of findings and developing of the report: Based on the review of secondary literature,
results of the focused group discussions with farmers, company officials and officials from state
government, the report was prepared.
Methodology:
Methodology of Study
Secondary data
Field Survey Data Analysis
collection
Post Field
Work
The report presents a matrix of performance measure worksheet to evaluate the outcomes of the project
interventions. The team has tried to validate the outcomes through some measurable outcomes wherever
possible.
(d) Target – 50
(d) Seed Production Training
Achieved – 49
(e) Target – 11 50 00 MT
(e) Direct procurement Achieved – 78612.9 MT,
26004 farmers
Snapshot of Intervention
Soybean growing farmers under PPPIAD program are trained about benefits of soil testing and right
method of collecting samples from their fields. Analysis of soil sample helps farmer in understanding
nutrient availability in soil and farmers can accordingly plan for fertilizer application. ADM ensures that
farmers are educated on the proper soil sampling methodology and soil test results are provided to
farmers on time. In other words ADM coordinates the samples and test results for the farmers.
Outcome
The ultimate aim of the PPPIAD project is to improve income of soybean growing farmers by adoption of
modern agronomic practices. One of the major expenses in producing soybean is fertilizer cost. Farmers
were asked about the benefits of soil testing and its impact on cost of production. As per the response
received by farmers soil test based fertilizer application helped them in saving fertilizer cost as they now
use less urea for per acre cultivation of soybean. Soil testing activity done under PPPIAD in year 2012-13
in different districts are as under:
Snapshot of Intervention
Seed Production under PPPIAD scheme: In order to achieve the desired productivity, certified seed of
soybean varieties should be made available to the farmers. Concept of farmers participatory approach in
seed production of improved varieties is being piloted under the scheme. The project aims to organize
farmers group to take up production of sowing seeds and help them to be self-reliant in sourcing high
quality planting seeds.
Outcome
Industry officials were asked about the three major problems in the soybean seed availability in the
country. The three major concerns as answered by respondents are
1. Inadequate availability of quality seeds of improved varieties
2. Conversion of breeder seed to foundation and certified seed is low
3. Lack of advanced seed planning
The main reason for the continued low use of quality seed has been inadequate access. Farmers are
trained to convert breeder seed to foundation seed and later foundation to certified seed under the
programme. The area (seed plots) under seed production programme for year 2012-13 is given in table
below.
Snapshot of Intervention
Promotion of High yielding seed varieties under project: One of the core reasons for low productivity of
soybean crop in previous years is the inadequate access of quality seeds to farmers. It needs no emphasis
that use of low quality seed adversely affects crop productivity. Under the PPPIAD project high yielding
seed variety (DS-228 and MAUS-71 developed by State Agriculture University is provided to farmers.
3150 qtl of high yielding certified seeds were distributed directly to farmers.
Outcome
In majority of the surveyed districts it was found that variety JS 335 was used traditionally which was of
short duration and gave lesser yield. Variety DS 228 and MAUS- 71 which were high yielding, had bold
seed and had good marketability. PPPIAD project in 2013 aimed at introducing these varieties at a large
scale to farmers.
Farmers were asked about the improvement in yield by using these improved varities. Farmers were
satisfied by the reported increase in the productivity of crop by using these varieties. The sowing of
quality seeds at right time is instrumental in increasing the yield per hectare of soybean crop in PPPIAD
covered areas.
Snapshot of Intervention
Purpose: Having established the fact that availability of certified soybean seed play a very crucial role in
improving productivity of soybean , PPPIAD project focused on training farmers in seed production.
Outcome
For implementing this programme ADM identified lead farmers for providing training in seed production.
Department of Agriculture provided breeder seed to farmers to undertake the seed production
programme and ADM officials provided step by step technical guidance to farmers in seed production
from sowing till certification. The number of farmers trained in soybean seed production and number of
villages covered is as under:
Table 10: Farmer training programme in three surveyed districts
Districts Farmers Villages No of training programme
Latur 2664 29 29
Osmanabad 941 10 10
Beed 1014 10 10
Total 4619 49 49
Snapshot of Intervention
With an aim to create market linkage for soybean, PPPIAD project introduced direct procurement from
buyers which helped farmers to reduce cost of intermediaries and indirectly raise farmer income.
Outcome
ADM has established soybean procurement centres near villages, where farmers sold their produce and
got higher returns as compared to local mandis. Approx 26004 farmers benefited from the procurement.
The process adopted at procurement centres includes issue of ADM kissan card to farmers. There are no
middlemen in the operations as in the case with local mandis, thereby saving money (mandi fees, other
transactions costs etc), time and harassment to the farmers.
Table 11: Year wise detail of ADM procurement centers in different districts in Maharashtra
Note:
*1= Due to non-availability of breeder seed from Universities seed production programme could not be taken in all
targeted areas.
*2= Seeds were distributed according to availability
*3= Since breeder seed quantity was less, so were the number of farmers . All farmers could be trained within 29 sessions.
*4= Value Chain meeting and training:425 trainings organised for 17477 farmers.
Snapshot of Intervention
PPPIAD project aims at training farmers about benefits of soil testing and right method of collecting
samples. The results of the soil testing are made available to the farmers and they are advised on the
right amount of fertilizer dosage based on requirement of the soil.
Methodology: Criteria for selection was to obtain 4 to 6 samples from all directions of village which also
helps in understanding soil health of the village. These collected samples ware submitted to RCF,
Laboratory in Ahmednagar and IFFCO Laboratory in Aurangabad. Soil Testing Van from RCF also visited
several villages during the project period. Soil test results received from laboratory ware distributed to
farmers on one to one basis.
Outcome
Soil Testing has been done for 2385 soybean growing farmers in year 2013-14. Soil test based crop-
specific fertilizer use can have a major positive effect on improving cost of production along with saving
costs. Awareness among farmers regarding benefits of soil testing based fertilizer application has
increased during the PPPAID project. Farmers saved Rs 350 per acre (i.e the cost of 1 bag of 50 kg of
Urea) due to soil testing based fertilizer application. Farmers were also communicated about micro
nutrient usage for Soybean e.g. Usage of Sulphar 20 Kg per Ha is recommended for Soybean post soil
testing reports.
Snapshot of Intervention
Seed production activity under PPPIAD:Seed Production programme is one of the major components of
PPPIAD project. ADM plays a major role in identifying and selecting lead farmers to participate in the seed
production programme in four districts. Department of Agriculture assists in registering of farmers for
seed production and timely release of subsidies as per achievement.
Table 14: Seed production program 2013-14
Sr. Component of Target Achievement
No. the Project
Unit Quantity No of Farmers Hectares Quantity No of Farmers Hectares
Methodology: Seed Production Program for foundation to certified Seed was implemented in Latur,
Osmanabad, Akola and Beed District. Selection of farmers for the Seed Production was done by analyzing
farmers experience in seed production for last two-three years. Also farmers responsive towards learning
new Technologies were selected. List of seed growers (selected farmers) was communicated to respective
TAO & DSAO. Farmers were trained about all aspects of seed production such as plant spacing efficiency ,
Good Agriculture Practices etc. The farmers are regularly visited by ADM Extension team for supervision
and advice.
Outcome
Sufficient production of certified seed is important to meet the future demand of Soybean. Seeds of DS-
228 (MPKV, Rahuri) and MAUS-71 (MKV, Parbhani) were provided under PPPIAD project which are rust
tolerant and are higher yielding varieties with a pod shattering period of 10-15 days. JS-9752, MAUS-162
and NRC-37 varieties suitable for mechanical harvesting are also introduced in the project.
Top three suggestions to strengthen the seed production programme as emerged from the discussions
during the primary survey relates to (a) Proper training of lead farmers for seed production (b) Incentives
to farmers for undertaking seed production (c) Combined efforts by Universities, FPOs and industry for
seed production.
Graph 4: Top three suggestions for strengthening Graph 5: Two major seed related problems
seed production programme as informed by farmers
1
2
Soybean seed production is first of its kind initiative undertaken by private player (ADM) approved by
Department of Agriculture, State Govt of Maharashtra. Training farmers on seed production, procurement
and providing logistics support is one of the vital services provided by ADM. This has a big role to play in
sustainability of the project considering the scarcity of Soybean seed.
Snapshot of Intervention
Promotion of High Yielding seed varieties under PPPIAD: There is dire need to increase the adoption of
certified Varieties mentioned below are being given to soybean growing farmers at reasonable cost.
Outcome
Importance of seeds cannot be ignored while we talk of improving the productivity level of soybean which
was stagnant at 3-4 qtl/acre from last few years.There is a large gap between attainable levels of
productivity achieved in front line demo plots and actual productivity at farm level. The reasons for this
are: (a) lack of awareness about potential of quality seed (b)non availability of seed. Under the PPPIAD
project 806 qtl of certified seed is supplied to farmers.
Snapshot of Intervention
Procurement awareness programme under PPPIAD: The purpose of the project is to provide more options to
farmers for marketing of his produce. ADM already has a direct marketing license. ADM procures soybean
directly from farmers in PPPIAD project under the Direct Marketing License.
Methodology:
a. Transparent pricing and effective communication on pricing: The daily pricing is fixed at 11:30 am,
based on (i) day’s average price at the nearest mandi, (ii) prices in other markets and (iii)
commodity exchanges. The rates are then displayed at designated Procurement Centres. For farmers
who are registered for receiving the rates on SMS, the message is sent on their mobile everyday by
12:00 noon automatically through system. Farmers who have not registered themselves can check
the rates through IVR system by dialling 223333. ( average calls on IVR per month : 32,200 ).Rate
once fixed, are not altered during the day, though market may go down or up.
b. Accuracy in Weighment: The farmer goods are weighed on electronic weighing scales. Small farmers’
goods are weighed by individual bags on electronic weigh scales. Goods of big farmers who bring in
their goods in bigger vehicles, are weighed on electronic weigh bridge. All the weights are taken in
the presence of the farmers, who can verify that accurate weights are recorded. Even the samples
taken for testing, are placed back on the weighing scale. Farmer signs in confirmation of accuracy
of weight.
c. Transparency in quality test: The moisture content is the vital quality parameter which needs to be
tested accurately. ADM is using calibrated electronic moisture meters which display moisture
content precisely. The reading is recorded in front of the farmers . Farmer signs in confirmation.
Trained personnel test for other parameters like damaged seed and foreign material ( refractions).
The entire quality tests are done in the presence of the farmers and the goods are accepted from
farmers only upon their confirmation about the tested values.
d. Timely Payment: The payments to farmers are made through cheques / electronic transfers to the
Bank accounts of the borrower. In case any farmer has no bank accounts, ADM has made
arrangements with HDFC Bank, to open bank accounts through their banking correspondent model.
Under electronic transfers, farmers receive the payment directly in their bank account and get SMS
confirmation from the Bank. ADM also have an ATM installed from HDFC Bank at factory purchase
point. Farmers can withdraw the funds from this ATM, even if they bank with other banks.
e. Exclusivity of direct marketing facility only to farmers: In order to ensure that the direct marketing
facility is used only by the farmers (and not by any aggregators or traders), ADM obtains the KYC
documents comprising of (i) Agriculture land record extract (Form 7/12) (ii) photo ID (iii) Bank
pass-book copy (iv) declaration that the soybean cultivated is produced by him. A farmer-master is
created in the system, capturing the photograph of the farmer. A magnetic card ( Kisan Card)
g. Training the farmers: PPPIAD provides training to farmers on marketing aspects. These trainings
are jointly arranged by ADM and the Department of Agriculture. Farmers are trained on price
trends, quality maintenance, best practices on post-harvest storage, warehousing facilities etc.
These trainings are held at farm level during pre-harvest stage, so that farmers can take
considered decision where and when to sell. Though ADM is providing all pre-harvest and post-
harvest services, there is no binding on the farmer that he should sell his produce only to ADM.
He is free to sell wherever he gets the best price. However, it is always the endeavour by ADM to
ensure that whenever farmer chooses to sell, ADM should be his first choice.
Table 18: Value chain meeting
(training on market awareness) Table 19: Details of Direct Procurement of Soybean (2013-14)
Districts Meetings Number of farmers Districts Procurment (MT) Value(INR) Farmers
Latur 205 8305 Latur 92280.76 3497 624 887 27859
Osmanabad 105 4794 Akola 12530 458 588 632 4236
Beed 25 1200 Total 104810.77 MT 394 crores 32095
Akola 90 3178
Total 425 17477
Outcome
Supporting farmers in accessing markets can address various market constraints and thus help them
respond to new opportunities resulting in better incomes. The soybean prices offered by ADM to the
soybean growing farmers are linked to the market and shared with the farmer in a transparent manner.
The prices offered are not lower than nearest APMC Auction average rate and not less than Govt.
announced MSP. Transparent and scientific tests of produce is provided to the farmer for better pricing.
Feedback on quality of produce is also given to the farmers. Farmer saves 2% of the cost by selling directly
to ADM. Minimization of repeated handling of produce makes the value chain more competitive by
reducing wastages and this benefits the farmer in the form of higher earnings .Weighing is done
electronically and in transparent manner with no deduction.
Table 20: Soya seed rates by ADM (Rs/qtl) Graph 6: MSP of Soybean (Yellow) (Rs/quintal)
Lowest for 2012-13 2650 2560
3000 2240
Highest for 2012-13 5075 2000 1390 1390 1440 1690
1050
Lowest for 2013-14 3010 1000
0
Highest for 2013-14 4100
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Source: CACP
Snapshot of Intervention
Farmers are well aware of agricultural technology but hesitate to implement them on their field. To
increase farmer’s confidence on agricultural technology,PPPIAD project introduced the new concept of
front line demonstration in year 2014. Front line demonstration program aim to develop awareness of
timely implementation of fertilizer, insecticide and increase productivity of soybean and reduce
production cost of soybean.
Approach:
1) Shortlisting of farmers from different areas to demonstrate new agro technologies
2) ADM provides Soybean crop protection kit including bio-fertilizer and balance chemical fertilizer
for FLD
3) Encouraging farmers to use recommended package of practices in FLD area
4) All FLD plots used soil test based fertilizer application.
Outcome
Direct connect with farmers, well planned
Graph 7: Front Line Demonstrations (Numbers)
training programmes and front line
18
demonstrations have played a key role in
Akola informing farmers about the modern method of
100
soybean cultivation. Educating farmers about
407
Latur soil test based fertilizer application, seed
177
treatment prior to sowing and use of bio
160 fertilizers have been crucial in generating
Osmanabad
45 positive outcomes in soybean cultivation.
71
Beed
13
Farmer village
Snapshot of Intervention
Soybean is a Kharif crop with duration of 90 days. As it is a short term crop, timely execution of farming
operations at each stage is critical. PPPIAD project aimed at providing end-to-end mechanized
operations of soybean cultivation.
Objectives
1) Minimise cultivation expenses by 33 %
2) Increase operational efficiency by timely farm operation.
3) Save wastage at harvesting stage by 20%.
4) Encouraging FPOs to take up other allied ventures jointly (equipment leasing, input supply, seed
production groups, warehousing, marketing etc).
Outcome
Formation of farmer group: Farmers' Groups register themselves as a legal entity, capable of entering
into agreements of equipment lease, entitled to borrow term loans from banks/Institutions or as may be
required under the applicable scheme for financial assistance from State/Central Govt. ADM assist them
with such formation. ADM also help these groups in administration of the project.
Later, Farmer groups are promoted to purchase mechanical equipment's. Total cost of project was 45
lakh where subsidy of 50% is granted by State Govt of Maharashtra. Equipment's are purchased as per
guidelines & norms set by Ministry of Agriculture.
Two FPO are formed during PPPIAD project. Each FPO executed a project on 300 acres of land each, which
is minimum area required for positive benefits to flow from any farm mechansiation initiative. Farmers
have realized 30-35 % savings in cost of production & 20 to 25 % increase in yield. Other benefits of
mechanized operations as identified by discussion with FPOs during survey are as under
Goal Outcome
Mechanical harvest can cover 10 to 15 acres a day, while manually farmers
Saving of time can cover 4 to 5 acres a day.
Harvesting & Threshing operations commence at same time
Manual sowing leads to non-uniform placement of seed and fertilizer. While
Effective utilization on other hand mechanized spraying leads to uniform spraying which
of inputs ensures effective utilization of Inputs. Vertical placement of nozzle leads to
efficient utilization of chemicals.
By mechanized sowing row to row distance of 30 cm and plant to plant space
Saving in cost of of 60 cm is maintained. Efficient plant spacing saves seeds cost. Proper
seed spacing lead to save on cost of seed of around Rs. 640 Per Acre
The same Harvester can be used for Green Gram (Chana), Red Gram, Wheat.
Multipurpose Husk gets collected separately which is a great source of Protein & is a good
feed for animal.
Formation of Farmer Producer Organization during PPPAID projects to provide mechanized solution
in Soybean cultivation.
To promote mechanization in Soybean, it was decided to form FPO (Farmer Producer Organization) under
PPPIAD project. ADM took a lead in this initiative and invited various Farmer groups to discuss the
concept. As per the performance, ADM shortlisted FPOs and guided them to form company with all
necessary documentation. Details of two FPOs formed during PPPIAD project is as under:
FPO name: Kranti Jyoti Farmers Producer Organization
Kranti Jyoti Farmers Producer Organization was established in 2013, located at Sarola Tehsil of district
Osmanabad. There are ten board of directors in FPO. With a capital investment of Rs 10 lakh and financial
support of Rs 30 lakhs from IDBI Bank, the FPO initiated the project of providing mechanized solutions for
Soybean cultivation. FPO is providing custom hiring services for Soybean cultivation in 300 acres of area.
Other than Soybean, FPO has also initiated such services in Gram (Chana) and Arhar (Tur).
FPO name: VRD Agro Producer Company
VRD Agro Producer Company was established in 2013, located at Sarola Tehsil of District Osmanabad.
There are ten board of directors in FPO. With a capital investment of Rs 10 lakh and financial support of Rs
34 lakhs from Bank of Maharashtra, FPO initiated the project of providing mechanized solutions for
Soybean cultivation. FPO is providing custom hiring services for Soybean cultivation in 400 acres of area.
Along with this FPO has started contract Farming for Safflower flower production program in 150 acres in
year 2013-14. In year 2014-15 FPO has also conducted Seed Production Program on 450 acre.
Snapshot of Intervention
Soybean rates in domestic market fluctuate widely, as it is dependent on international market for soy oil
and soy meal. Rates of soybean during last 3 years have been varying .Prices generally tend to be on
lower side during harvest and move up during off season. In such a scenario, benefit of eventual price
rise accrues to traders who buy when prices are low, stock it in warehouses and then sell when the rates
move up. PPPIAD project aims at connecting farmers to commodity spot exchange for better price
realization of their produce.
Outcome
Challenges
• lack of storage space Initiatives undertaken in PPPIAD
• Lack of market information
Postharvest (A)Link the farmers to market through Commodity Exchanges
in order to assist them realize benefits of Exchange linked
rates and manage price risk. They can enter into future trade
with NCDEX to lock in the best price
• physically transport the
soybean bags to market
(B)Assist the farmers with credit linked warehousing
Transport • Increase in transport cost facilities.
Methodology :
For undertaking this activity, ADM organizes farmers into a formal Group (FPO).ADM, jointly with an
accredited Warehousing Service Provider ( like NCMSL) identifies a warehouse at a location convenient
for farmers for storage of soybeans. The warehouse location shall also be acceptable to NCDEX-NSPOT for
receiving delivery of soybean.Farmer deposits harvested beans conforming to quality conditions as
specified by ADM. Warehouse Service provider issues a negotiable warehouse receipt to farmer. ADM
ADM also works with Maharashtra State Warehousing Corporation for scientific storage of produce.
Maharashtra State Warehousing Corporation has introduced measures for providing economical services to
the farmers to store their primary produce. M.S.W.C. encourages to avail the facilities of scientific storage
by giving specific rebates.
Impact Analysis
9
Impact Analysis
Reduce
production cost Rust tolerant
Introduction of
new varieties
Availability of Soybean seed is a big concern among farmers. Shortage of breeder seeds supplied by
Universities is the major reason behind availability of certified seeds to farmers.
Quality seed tends to give the highest returns, relative to cost of other inputs. Low quality of soybean seed
is one of the major concerns in soybean cultivation. Therefore , conversion of breeder seed to foundation
and certified seed is very crucial for soybean cultivation in Maharashtra. Seed production progarmme
under PPPIAD has been a very appreciable effort taken by ADM and State Govt of programme. However
three suggestions as emerged during primary survey to strengthen the seed production programme are
mentioned above.
certified seeds 80
40
Chemical unbalanced Soil test based
20
fertilizer
0
Agri equipment Manual Planting and harvesting Do you get seeds Do you think
machines introduced at right time and advance planning
quantity is required for
Extension inadequate Front line certified seed distribution
3%
6% 15% Land Preparation
10%
Seed + sowing
Fertilizer
16% 21%
Intercultivation
Pesticide
Harvesting
8%
16% Threshing
5%
Transportation
Weedicides
As mentioned in above graph, planting and harvesting are the costliest operations in cultivation of
Soybean. Encouraging FPOs to undertake custom hiring services for Soybean cultivation through modern
agri equipments have yielded very positive results in PPPIAD project. As depicted in the table mechanized
soybean farming increased farmer income by way of saving cost of seed and cost of labour for planting and
harvesting.
Empowering farmers with knowledge is one of the core project activities under PPPIAD. ADM Extension
Centers are known as KVK- KrishiVikas Kendra. There are 15 KVKs spread across Latur, Osmanabad and Beed
District. Each center has one KVK in their charge and the person is assisted by 2 field staff. Each Extension
office serves 20-30 villages in their catchment area.
Farmers were asked about their perception about extension activities under taken as Front line
demonstrations under PPPIAD. As depicted in graph above, surveyed farmers were satisfied with new
initiatives in PPPIAD project.
Table 27: Labor required in Soybean cultivation Table 28: Agri equipment's introduced under PPPIAD
As evident in the table above, harvesting and sowing operations requires maximum labour in soybean
cultivation.Each operation needs to be commenced and completed in a short time. Land preparation should
be completed before monsoon, sowing should start when rain sets in and should be completed in a week's
time. Likewise, fertilizer application, pesticide spray, weedicide application are to be done in a short time
at appropriate stages. Harvesting also needs to be done timely, as any delay would result in pod shattering
and loss of matured beans. All these operations are currently done manually by employing labour.
Availability of skilled labour in agricultural operation is an additional challenge. This indicates significant
opportunity for mechansiation in Soybean. Agri equipment's introduced under PPPIAD project are also
mentioned in the table above.
4 BBF 40 minute/acre
Table 31: PPPIAD project encouraged FPO's to run custom hiring center for soybean cultivation
Operation Equipment Rental charges
Spraying Boom sprayer 200/acre
Sowing BBF+ tractor 800/acre
Ploughing Tractor+ plougher 1300/acre
Cultivation Tractor+ Cultivator 700/acre
Rotavator 1200/acre
Source: primary survey
2. Increase in Dissemination of Overall increase in yield (a) 806 qtl of certified seed • 20-30% increase
soybean improved cultivation due to better/modern distributed to 968 in yield
yield practices to improve yield cultivation practice such farmers in year 2013-14
of crop. as: (b) Total 418 ha area under
(a) Distribution of seed production in
certified seeds to 2013-14
farmers (c) High yielding and seeds
(b) Seed production fit for mechanical
programme harvesting supplied
(c) Good quality seed (d) Plant spacing of 30* 60
(d) Plant spacing cm maintained
efficiency (e) Agriequipments supplied
(e) Mechanized for end to end
operations operations
4. End to end (a) Introducing (a) Area under farm (a) End to end farm • Net saving of 30%
farm Mechansiation to mechanization and : mechanization in production
mechansiati small land holder (a.1) Saving in seed cost undertaken in 900 acres cost by taking
on farmers under group in 2013-14 by forming mechanized
(a.2) Saving in cost of
approach FPOs operations
production
• 25% increase in
(a.3) Timely operations
yield due to
mechansied
operations.
• saving in cost of
seed- Rs 640 per
acre
• Same harvester
can be used for
chana, red gram
and wheat
• Effective
utilization of
agrochemicals by
mechanized
spraying
• Under this project
two farmer
producer
organizations
were formed.
7. Strengthening (a) Development of (a) ICT based market (a.1) IVR ( Interactive Voice • Integrated end to
extension market oriented information services Response Sytem ) end approach
service extension system (b) Front line 02382 223333 is through
demonstrations available from 11 AM extension
for rest of the day. activities were
(c) Extension services at
There are Four Lines appreciated by
different phases of
available on which farmers.
crop.
Farmers can call and • Regular advise by
get Location Specific ADM officials
rate i.e. for ADM Latur, (krishivikas
ADM Akola & ADM Kendra) through
Nagpur. front line
(a.2) ADM has facilitated demonstrations
SMS Service to more has contributed
than 3000 Farmers on to adoption of
Daily basis to selective best practices
farmers in villages resulting in
which also helps enhanced
farmers getting to soybean
know about ADM Soya productivity.
Market Price.
(b) Front line
demonsatrions
undertaken in 738 ha
in 2013-14
(c ) Farmer trainings
organized on:
1. Soya bean Plantation &
Integrated Nutrient
Management
2. Effective Intercultural
Operations and
Integrated Weed, Pest,
Disease Management
3. Extension programme
on harvesting ,
threshing & Direct
Marketing awareness
Photographs
PHOTOGRAPHS
HDFC ATM facility at ADM purchase Centre Farmer training on modern practices of
Soybean cultivation
Recommendations
12
Recommendations
A. Convergence among State Government, Universities, Industry and FPOs for advance planning of
Soybean seed availability. Subsequently, the process of conversion of breeder to foundation to certified
seeds should be streamlined to fill the demand- supply mismatch of Soybean seeds. FPOs should be trained
and encouraged to take seed production programme for Soybean.
B. Collection centers at village level: PPPIAD project has been successful in terms of increasing the
productivity of the soybean crop. However as the marketable surplus increases with the farmers there is
urgent need to also link them with markets. Opening up collection centers in vicinity of villages is very
crucial in this regard. ADM has opened ten procurement centres in year 2013-14 and plans to increase these
numbers to 48 in year 2014-15.
C. Increasing field level demonstrations for introduction of new varieties: There is lack of awareness among
farmers about new varieties of Soybean. As noticed during the primary survey the traditional low yielding
variety of Soybean JS 335 has been replaced by high yielding varieties such as DS 228 and MAUS 71 under
PPPIAD project. Likewise the varieties which are not only high yielding but also suitable for mechanical
harvesting should be promoted in a big way under the project.
D. Soil test based Integrated nutrient management: PPPIAD project promoted the use of integrated nutrient
management. The dose of fertilizers was reduced after following soil sample reports. For instance, farmers
save the cost of one bag of Urea after analyzing soil sample reports. Use of sulphur as major micro nutrient is
also recommended under integrated nutrient management. Soil test based integrated nutrient
management should be promoted in a big way.
E. Strengthening farm mechansiation in soybean: Due to non-availability or higher cost of labour, farming
activities often suffer due to untimely/inefficient operations. This in turn results in poor yields. Bringing
mechanized solutions at planting and harvesting stage can decrease cost of production of soybean
cultivation. FPOs should be encouraged to undertake custom hiring solutions for Soybean growing farmers.
F. Active involvement of FPO’s in project: Encouraging FPOs to undertake seed production programme and
custom hiring centers is very crucial. FPO s should be involved in discussion of project components at initial
stage . ADM has formed two FPOs in year 2013-14 and aims to increase this number to 48 in year 2014-15.
Likewise all PPPIAD projects should include FPO formation as one of the major deliverable.
G. Promotion of water saving technologies: Micro irrigation confers many agronomical advantages including
early and uniform germination with less of water. Policy support is much needed and recommended to help
disseminate and enable extensive adoption of water harvesting and water saving technologies.
H. Need for analyzing and understanding farmers needs at ground level while designing the project: The
initiatives undertaken under project should be meaningful and based on farmer needs. For sustainability
and long term impact of such efforts the interaction with farmers and FPOs should be maintained on
continuous basis.
Annexure
Annexure: List of Respondents
List of Farmers surveyed