July 2012
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Integrating urban with rural markets
Vol. 1,
Issue. 1,
July 2012
Editor
Assistant Editor
Madhvendra Singh Chauhan
Correspondent
Mohd Mustaquim
Photo Department
Laxman
Creative Directors
Avijit Sen
Graphic Design
Digital Department
Marketing Department
Praveen K Singh
Amitava Sen Abdul Rehman Nitin Saxena Rakesh Kumar Arora
Kaushik Guha Roy
Production Department
M Babumathew
H R Department
Umesh Juyal
Publisher : Ajay Adlakha Editorial and Advertising Office
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© Rural & Marketing, All rights reserved throughout the world. Reproduction of the material in any manner is strictly prohibited. Printed, Published and Owned by Ajay Adlakha, D-4/2, Okhla Industrial Area, Phase – I, New Delhi-110020, Tel.: +91-11-30888707 Fax: +91-11-30888750. Printed at Infinity Advertising Services Pvt. Ltd. Press, Plot no.-171-172, Sector- 58, Faridabad, Haryana Rural & Marketing does not take responsibility for returning unsolicited publication material. All disputes are subject to the exclusive jurisdiction of competent courts and forums in Delhi/New Delhi only.
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Editor’s Note
Welcoming with open arms… Mahatma Gandhi once famously said that India resides in villages and his words still hold the same reverberation. Atleast 40 per cent of the world’s markets are in rural India. They represent around 850 million people whose current consumption is estimated to be atleast Rupees four trillion per year. A recent report by a trade body reckons that the country’s rural consumer market generated US $ 425 billion of revenue, up from US $ 266 billion of the previous year. We are finally beginning to see that rural India has money and is able to spend at the same time. The big reason for the growth of this market is that the country’s rural consumers are progressively gaining more spending power. The number of rural households earning less than US $ 760 a year is down from 65 per cent to 24 per cent since 1993, while those with an income of US $ 1,525 have more than doubled from 22 per cent to 46 per cent. Bring together these factors with enhanced roads and other infrastructure in rural India to help products reach their markets, and it’s comfortable to see rural India’s fascination. Corporate houses as well as MNCs are keeping a close tab on the overall development of this lucrative market. They comprehended that due to competition in the urban market, business in the metro cities is moving towards saturation as higher capacity of the consumers has already been targeted. So for them the next business destination is rural India which promises for a lasting future and higher returns on investment. Keeping all these in mind, we have launched this magazine - Rural & Marketing, to discover the cryptic magnificence of rural centers in the country. We aim to reveal the fine points of the rural bases, which go unnoticed by the mainstream media. Identifying the loose gaps and filling them with its analytical and informed stories, we are focusing on efficient flow in terms of a knowledge base on rural India. While churning out the evident focal point of the magazine, we have tried to make the product act as an eye-opener to all the stakeholders who are eying the rural India. We are trying to lead the readers and help them in making an informed choice. In the cover story, we have discussed the growth and potential in the rural sector. The story also discusses the challenges in the sector and way forward. The story analyses the strategies that need to take into account the vast number of languages and cultural differences across India’s hinterland, while keeping strategies highly flexible and adaptable. While the government schemes like MNREGS and others are leading to economic empowerment of the rural communities. These government schemes are marred by heavy distortion in terms of siphoning of the funds. In an exclusive to Rural & Marketing, the Rural Development Minister, Jairam Ramesh admitted that while a counted few of the NGOs are doing commendable job in rural areas of the country, there are some which are more involved in draining off the public funds in the social sector. We have also done a story on how corporate houses are working on rural growth plans, often out of sheer necessity. Filling the gaps left by government, corporate houses have built roads in rural India that help them deliver their goods, provide education and healthcare for communities whose workforces they rely upon, and implement environmental programs to protect precious natural resources needed to keep supply chains running smoothly. With this, first issue of Rural & Marketing in your hands, we announce a new revolution in terms of providing you with factual, analytical, sincere, and all-inclusive information on rural India. We’ll be glad to hear from you in terms of your feedback and suggestions.
Praveen K Singh
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To fill the void
Prof. MS Swaminathan Member of Parliament
I am very happy that the group is launching a print magazine on Rural and Marketing. There was a great need to fill this void through some sensible publication which can cover issues bothering rural population. Lots of things are happening in the rural India particularly in the agriculture sector. Our Prime Minister is repeatedly emphasising for an urgent need of second green revolution and scientist fraternity is busy working to meet the uphill task of feeding the billion plus population. Therefore, the only possibility is the ever-green revolution pathway. Green Revolution means increase in productivity per unit of area, this is what we want but that should be done without any ecological harm. Evergreen revolution means productivity improvement in perpetuity without associated ecological harm. Through this publication, I am hopeful that readers will get regular updates about agriculture as well as of other sectors and will use this information to use their resources wisely. I wish this initiative a great success.
Avoiding lackadaisical attitude
The winds of liberalisation have not touched much of rural India, especially as far as creating an environment for entrepreneurship is concerned. In the hinterland, the process of registering and getting certificates and various other permissions to embark on a start-up is still so slow and full of corrupt intermediaries that many budding entrepreneurs run out of patience and give up. Indian political system has remained a major roadblock in the way of rural and urban people. Corruption kills the very spirit for innovation, but who cares? Rural areas also face an acute shortage of skilled workforce. The establishment of the National Skill Development Corporation, has done little to ameliorate the situation. For instance, in Gujarat more than 70 per cent of positions for faculty in government polytechnics have not been filled. This lackadaisical attitude is thwarting the development of appropriate skills at the grassroot level. As a magazine, you need to rake issues related to the core of the rural India. I extend my good wishes to your team.
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Prof. Anil Gupta IIM, Ahmedabad
Raising the grassroot issues
Rakesh Singh Tikait Spokesperson Bhartiya Kisan Union
I am happy that Rural & Marketing has taken this initiative of coming up with a magazine on Rural India. I am hopeful that this publication will raise the issues bothering the rural masses, which are ignored by the mainstream media. There are several issues like- Forced land acquisition, Labour crisis, farmer suicides etc., which go unreported due to lack of media interest and attention to the rural community and a publication like this will certainly help them to raise their voices. I am hopeful that the magazine will report the discrepancies taking place during policies’ implementation and will report the matters with unbiased courage. I forward my sincere wishes to the publication.
Publicising government initiatives
The development of rural India is imperative for inclusive and equitable growth. It intends to unlock the huge potential of the population that is presently trapped in poverty with its associated deprivations. The analysis of incidence of poverty across Indian States indicates that poverty is very closely linked to the absence of social infrastructure. In order to get an all inclusive and equitable growth the state governments are directed to form a cadre of Bharat Nirman Volunteers, for promoting and streamlining the implementation of the flagship rural development programmes of the Centre at the grassroot level. According to guidelines issued to the Local Administration Department, by the Union Ministry of Rural Development, the village-based cadre should act as the ‘eyes and ears’ of the district administration, help accelerate rural development and provide all possible assistance for effective execution of welfare and development programmes like the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), National Rural Livelihood Mission, Nitin Chandra, IAS rural housing and such others. I hope Rural & Marketing will raise such Joint Secretary, MoRD issues to make the country aware of the realities and the government initiatives in the rural development.
Mail us your feedback and suggestions at mag.rural@gmail.com July 2012
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Cover Story
Leveraging Rural Markets Rising income in rural areas is helping India Inc to thrust its way to the rural markets
Editor’s Note
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Letters to the Editor
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News Digest
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Events
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Main Feature
Reality or Hogwash?
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CSR activities of corporate houses to penetrate rural markets SPOT LIGHT
Igniting Hopes
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Case study of Tilonia village in Rajasthan, which has drawn global attention as a model village in terms of self sustenance
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Interview
An exclusive interview with Union Minister for Rural Development Jairam Ramesh
contents Round Table
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Need for Second Green Revolution
Panel discussion on need for a second green revolution in India Demeanour
Stigma Versus Need
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Condom promotion is facing challenges due to socio-cultural barriers Rural Tourism
Exploring the Countryside
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Rural tourism is in its nascent stage in India. However, many villages have found a place on the international tourist map Service
Healthcare on the Blink
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Government’s initiatives like NRHM has failed to provide adequate healthcare to the rural poor Automobile
Riding the Bumpy Roads
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innovation
Creative Bees
National Innovation Foundation is empowering rural masses to showcase their extraordinary creations
82 FAIR
Cultural Extravaganza
Pushkar mela is not only famous for trading livestocks but also for showcasing the cultural heritage of Rajasthan
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Auto companies are customising products as per the need of rural markets Housing
Home for all
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Rural housing a virgin land for urban developers Agri Watch
Boosting Agri Products
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Indian trade policy needs to shift from gatekeeping on export policy towards more reliant and transparent system
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‘Govt must have a role in land acquisition’
policy
>>
Backing the state intervention in acquiring land for public-private partnership (PPP), Rural Development Minister Jairam Ramesh said that government’s role during the acquisition cannot be eliminated. However, the parliamentary standing committee has suggested that state government should not get involved during the process. “The government must have a role in land acquisition,” The minister told during a news conference. “We must recognise that we are not at a stage of development where government’s role can be ‘eliminated’.” The minister said he did not support the idea that corporates only work for their own interests. “The notion that private companies serve only private interests is something I do not believe in,” he said. Terming the recommendations of the standing committee as “not binding”, the minister said the government will continue with the provision that allows it to acquire land for PPP projects. Ramesh, however, said he will be open to discussions on the probability of restricting government role in land acquisition for projects that are completely private owned. The original version of the Land Acquisition, Rehabilitation and Re-settlement Bill, approved by the cabinet in October last year, allows the government to acquire land under eight conditions. These conditions include acquisition for PPP and private projects, which can establish a public purpose.
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30 new activities included in MNREGA >> UPA’s flagship scheme, MNREGA now has 3o more activities that include flood mana gement works, agriculture, livestock, fisheries and sanitation. Speaking to the reporters at the launch of radically improved form of the Act, Rural Development Minister Jairam Ramesh said that food for work scheme is being reviewed by experts. Ramesh conceded that people like the Food Minister K V Thomas who were arguing for at least part payment of wages under the act, that promises 100 days of work for those without jobs in rural areas, through food grains, had their reasons. These included shortage of storage facilities for food procured. “But our experience with food for work programmes in the past has been very negative. Corruption has been really extraordinary in food for work programmes. Assets created under food for work programmes like roads for example they were mythical assets not real assets. In fact, MNREGA was meant to be a step forward from this,” he said.
‘Tourism to play important role in Rural Development’
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Tourists nowadays are increasingly becoming interested in sites of diverse nature: religious-spiritual, cultural-artheritage, ecological-nature & now new and upcoming rural, farm-agriculture, educational, wellness and other genres of tourism also. The Union Minister for Tourism, Subodh Kant Sahay is very keen on harnessing the tourism potential of the rural areas. He says that rural tourism gives a boost to rural economy and development; it benefits the community not only in terms of generating sustainable employment, but also provides
growth opportunities near their homes. Development of rural tourism creates opportunities for livelihood and employment for the rural people, including youth, women and artisans. In India, the development and promotion of tourism is primarily undertaken by State Governments and administrations. However, under its Rural Tourism Scheme, Ministry of Tourism provides Central Financial Assistance (CFA) to them for activities involving development of rural tourism including propagation of the Gurukul process.
AGRI-BIZ
Agri-biz to be in the priority sector
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It is believed that a productive agriculture sector is crucial to ensure food security, social inclusiveness and keeping inflation under control. To harness the true potential of the agro-based industry, there is a need to invest in modernisation, new technology and food processing, to make value-added products, expand exports and business, etc. However, due to the complex structure of the food industry and long gestation period, access to funds is quite a challenge. Considering this, the government decided to include food processing in the definition of ‘priority sector lending for banks’. According to an official of NABARD, “Inclusion of food
and agro-based processing sector under priority, lending for bank finance is a major step forward aimed at enhancing the credit flow for the sector.” In 2006-07, a separate window was created in NABARD, to provide refinance for loans disbursed to food processing segment especially agro-processing infrastructure, market development, and follow-up initiatives. The cold storage sector got a credit-linked subsidy scheme of the Government of India for cold storage, rural godown and agri-market infrastructure that have strengthened post-harvest linkage and raw material base for processing units and resulted in credit flow to the sector.
Jain irrigation to invest in African countries >> Jain Irrigation Systems, one of the largest irrigation companies in the world, is eyeing the African continent to expand its irrigation business. The company will invest US $ 375 million (about Rs 2,000 Crore) over the next few years to improve income of small and marginal farmers in African countries, including Nigeria, Kenya and Rwanda. In a filing to the BSE, the company has agreed to partner with G-8 and various African nations to invest in Africa. “JISL has committed investment and projects of US $ 375 million over the next few years to build sustainable agriculture and to improve income of small holder farmers in sub-Saharan Africa,” the filing said. JISL makes drip and sprinkler irrigation systems and components,
piping systems, plastic sheets and agro processed products. The company said that it will partner and collaborate with the governments of Kenya, Rwanda, Ethiopia, Mozambique, Tanzania, Ghana, Cote d’lvoire, Burkina Faso, Nigeria .
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Govt to reduce fertiliser subsidy
Godrej Agrovet to invest Rs 60 Crore in Bihar >>
The agro arm of the Godrej Group, Godrej Agrovet, will invest Rs 60 Crore in Bihar to set up an animal and poultry feed project at Hajipur with a capacity of 2.5 lakh tonnes. Eminent industrialist and Confederation of Indian Industries’ (CII) president, Adi Godrej, said, “Bihar is a priority state for the CII as it has achieved one of the fastest growth in gross state domestic product (GSDP) in the country”. He said, Bihar is enjoying a good reputation in terms of governance and progress”. Godrej said that economic reforms, early implementation of goods and services tax (GST) and good governance could accelerate the country’s gross domestic product (GDP) growth rate by 2 per cent to take it to over 9 per cent, against the targeted 7.5 per cent, in fiscal 2012-13. Indian economy would be buoyant thereafter, he said. Godrej said CII would extend help to both central and state governments and interact with opposition parties to accelerate the reform process to galvanise the economy, which would reduce the effect of current global slowdown. The CII would try to persuade the opposition parties to support legislations in parliament for ushering in economic reforms, he said.
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The government plans to change the subsidy policy and give more subsidy for balanced fertilisers and sought Parliament’s support to divert the subsidy for fertilisers to organic and balanced manure, the minister said during the Question Hour. He said due to excess use of fertilisers in Punjab, Haryana and Western Uttar Pradesh, paddy cannot be grown and government is now encouraging farmers of this region to sow pulses, oilseeds and wheat.
FERTILISERS
>> Over usage of fertilisers in agriculture is causing a number of problems and is affecting soil health in the country. To reduce its usage, the government plans to reduce subsidy on fertlisers and divert funds to organic manures, biofertilisers, green manures and promotion of organic farming. “During the first Green Revolution, productivity was increased by 50 per cent with the help of fertilisers. But today balanced fertilisers are needed. Urea is being used by farmers in high quantity which is affecting productivity,” Agriculture Minister Sharad Pawar informed Lok Sabha.
FMCG
Cut in MNREGA allocation may hit FMCG firms >> The reduced allocation to the UPA government’s flagship rural programme Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) could see revenue growth in the FMCG sector falter. Consumer staples firms have been relying on rural demand growth to bolster their top line but the reduced allocation to the MNREGA for the financial year 201213 could see growth in FMCG sales in rural areas being crimped feel industry experts. Finance Minister Pranab Mukherjee reduced allocation of MNREGA to Rs 33,000 Crore in the FY13 from Rs 40,000
Crore in FY12. FMCG companies see a bit of an adverse impact in the rural areas in the second quarter. Yet a lot depends on the monsoon and agricultural output. The companies draw a major stake of its revenue from nonurban areas. There are developments which may eventually cause the demand to drop, such as lower realisation or support prices in some crops and, more importantly, slowing down of prosperity inducing-schemes like MNREGA. But, as of now, there is at best only a mild evidence of a secular demand drop.
RETAIL
Raymond eyes rural growth >> Apparel major Raymond is expanding its retail footprint across India. Expansion in the last three years has been largely in small towns, taking the brand's exclusive stores to over 200 towns. In the last three years, over 250 exclusive stores have been launched. Of the 100 planned stores for this year, around 80 are up and running, taking the total to over 670. An official of Raymond, said, "We mapped all towns by the Census (2001) three years back. We identified 750 Tier -III, VI and V towns on the basis of population and economic potential. Based on market attractiveness, we decided to leverage Raymond's brand equity and enter these markets with exclusive stores." According to him, consumers in metros and
smaller towns have today merged in terms of choices and preferences - thanks to exposure through travel and media. Except for around 50 company-owned stores, the rest are franchisee-owned. Among new towns that Raymond has expanded into are Jalna, Latur, Porbander, Nanded, Bardoli and Baramati. July 2012
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AUTOMOBILE
Bike makers eye entry-level segment >>
Indian as well as Japanese bike makers are eying rural population with their entry-level bikes and this, as expert opine, will lead to cutthroat competition in this largely fragmented but untapped market. Japanese companies Suzuki and Honda have designed Hayate and Dream Yuga respectively to tackle their Indian counterparts Hero and Bajaj. The entry level, or commuter segment, which includes motorcycles powered by 75-125 cc engines, accounts for 70 per cent of the world’s second-largest motorcycle market. Low ownership of two wheelers, rising incomes in rural and semi-urban areas and increasing number of youngsters in the country are among factors that will help
this segment grow and accelerate. Bike makers are most aggressive in the 100-125cc segment (bikes priced between Rs 38,000 and Rs 50,000). Within a span of less than a month, this segment- dominated by the likes of Hero’s Passion and Splendor, Bajaj’s Discover and TVS’ Star Sports- has seen a flurry of launches such as Suzuki Hayate, Bajaj Discover 125 ST and Honda Dream Yuga. Now, Hero Motocorp has also launched its new bike Ignitor in 125 cc segment to take on its competitors. And there’s more to come as bike makers gear up to flood this sector with aggressively priced new products and variants.
Toyota all set for a rural drive >> Having set its sights on semi-urban and rural markets,
car maker Toyota Kirloskar is bullish on India operations. Though it anticipates margins to come under pressure due to rupee depreciation and firmness in interest rates, it expects a 40 per cent growth this year. The company is looking forward to sell 1.80 lakh units this year as against 1.36 lakh units in 2011. The company had completed expansion of both its plants in Bangalore. This would reduce the waiting period for Fortuner and Innova drastically. This year, the company plans to tap the potential, specifically for Etios, in the semiurban and rural areas. It would set up workshops in small towns with big potential such as Tirupur, Asansol and a few locations in Punjab.
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Canon India intensifies its CSR activities With an aim to create awareness about environmental issues and as a part of their corporate social responsibility, Canon India conducted a tree planting drive in Gurgaon. Over 700 saplings were planted in the Biodiversity Park Gurgaon, where school children and company employees participated. Kazutada Kobayashi, President & CEO Canon India, said, “Canon is proud to initiate the million trees effort. When planting one tree can make a difference to a lot of lives, so
imagine the importance planting a million trees would. Our employees are encouraged to give back to society and demonstrate responsible behaviour to address social issues.” According to Canon, their CSR initiatives are based on its corporate philosophy - Kyosei, which means “living and working together for the common good”. As a responsible company, this means establishing good relations not just with customers and communities but also with the environment.
INDUSTRY
>>
ADVERTISING & MARKETING
Bajaj Allianz starts wall campaign >>
Eyeing the rural market, insurance major Bajaj Allianz has started a wall campaign to woo the rural consumers. The campaign which kicked off in April is currently being carried out in Madhya Pradesh, Bihar, Jharkhand and a few parts of Maharashtra. The objective of the campaign is to create brand awareness and grab more eyeballs for Bajaj Allianz insurance policies. With this activity, Bajaj Allianz is looking forward to educate rural Indians of the importance of having a life insurance. The campaign is targeted at the rural-urban audiences of these areas, where the consumer pattern is evolving rapidly. Adwallz has designed the campaign in a very simple yet innovative manner keeping in mind the target market. Adwallz has painted the logo of Bajaj Allianz, along with a text underneath that reads ‘Bajaj Allianz ke sath raho befikar’ across walls in these areas. The text is written in Hindi, keeping in mind the local audiences.
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Lowe Lintas bags brand communication for Bharti Retail
IT & TELECOM
>> Lowe Lintas & Partners appointed as the brand communication partner for Bharti Retail’s Easyday retail chain. With over 186 stores successfully operating across 12 states, Easyday, the retail brand of Bharti Retail, caters to households’ shopping needs across food & grocery, home furnishings, electronics, consumer durables and clothing through three different store formats. Commenting on the partnership, an official of Lowe Lintas & Partners
said “We are extremely thrilled to partner with Bharti Retail and we look forward to building a powerful brand that touches the life of every Indian in the years to come. The retail market in India is growing rapidly and Bharti Retail and its Easyday stores will play a very prominent role to expand the category. We will partner them in delivering a distinctive brand promise that will make the brand a leader in the market.’
Internet revolution bypasses rural India: Survey >> Internet revolution has bypassed rural India with less than half a per cent of families having the facility at home as against 6 per cent in cities, reveals a government survey. “At all India level only about 0.4 per cent of rural households had access to Internet at home as compared to about 6 per cent of urban households,” said the National Sample Survey Organisation (NSSO) report on expenditure in 2009-10. Reflecting the digital divide in India, the study said just 3.5 households per 1,000 families, had access to Internet services at home in rural areas in the year. The penetration of digital services was highest in rural areas in Goa with 50 out of 1,000 households having Internet connection. Kerala came next with 34 families having such a facility at home. Among the hilly States, Arunachal Pradesh had the best reach of the Internet service in rural areas with 19 out of 1,000 households have such facility at home, followed by Himachal Pradesh at 16. The study further states that among the major states, Kerala had by far the highest proportion of households with Internet access in the rural areas at 3 per cent followed by Himachal Pradesh at 2 per cent.
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Stress on widening of rural tele-density >> The Minister of State for Com-
munications & Information Technology Milind Deora, informed Rajya Sabha that at present the rural tele-density is approximately 38 per cent as compared to urban teledensity of 168 per cent. Under the Report of the Working Group on the Telecom Sector for the 12th Five Year Plan has brought a proposal, for increasing telecom penetration in rural areas. The proposal recommends for mobile access to all villages and rural density of at least 60 per cent by 2017, completion of National Optical Fibre Network (NOFN), development of Broadband kiosks, on the lines of STD PCOs, in the rural areas to provide easy access to rural people to broadband services, encouragement for use of facilities like m-banking and e-governance projects and development of low cost customer premises equipment and application in regional languages.
ECONOMY
Rural economy surpasses urban
HDFC to open rural one-man branches
>> Indian rural economy has reached a mark of US $ 1 trillion. Hence no company can now afford to ignore rural India. Whole rural India is moving from poverty to prosperity. In times to come, there will be a huge upsurge of demand in rural India in durables, consumer electronics etc. In past two years, the urban growth has been by 10 per cent while that of rural has been by 30 per cent. Rural GDP now equals urban GDP. Marketers are waiting to tap into this expanding market, particularly those dealing with consumer durables. Government schemes have been the growth drivers for rural India. In the last 3-4 years, the government’s spend on the various schemes has increased by 460 per cent. There is a special focus on education. Youth is another main reason for rural India’s growth. They have been going to nearby towns for higher education. It’s they who bring urban aspirations to life and are users of products that are used by urban India.
>> HDFC Bank, the second largest private sector lender in the country, is set to open one-man branches in rural centres. The move will help the bank meet priority sector commitments and aid its financial inclusion drive. “We have already started it on a pilot basis in some villages. These branches will be operated by a single person. They will be open for a few hours in a day or for a few days in a week, depending on the local requirements,” a senior executive told. The branches would initially provide the basic banking services, such as cash deposits and withdrawals, fund transfers and loans to locals. ICICI Bank, the largest private sector bank in India, is adopting a similar model to expand its reach in rural centres. According to bankers, this strategy will also help reduce dependence on Business Correspondents (BC). Banks have so far covered 74,199 of these villages. Bankers estimate around 600,000 villages in India. Banks have 138,502 outlets in rural areas, including 24,085 rural branches and 111,948 BC outlets.
Centre approves Rs 8,500 Crore for rural roads >> Government of
road connectivity. The Cabinet directed Rural Development Minister Jairam Ramesh to conduct a survey to establish the number of such habitations in all the Schedule V areas that needed to be covered, and prepare the estimate for taking a final decision. Similarly, the Cabinet was sympathetic to the problems of the people residing in villages in border areas that Union Road Transport and Highways Minister C.P. Joshi batted for. The Ministry of Rural Development will study all the 362 border blocks located along Pakistan, China, Nepal, Bangladesh and Myanmar. Mr. Ramesh has ordered a survey to establish the number of villages under the two categories, and the money that would be required to construct roads under the PMGSY, the allocation for which has been raised to Rs. 24,000 Crore for the current financial year. July 2012
Rural & Marketing
INFRA
India has approved to shell out Rs 8,500 Crore to build roads to connect all tribal habitations and villages under the Pradhan Mantri Gram Sadak Yojana. The Union Cabinet, at a meeting on May 20 approved this special package for connecting 6,000 habitations in 78 Left wing extremist-affected districts and entrusted the Union Ministry of Rural Development with the job of preparing the estimates for the two projects. Panchayati Raj and Tribal Affairs Minister Kishore Chandra Deo underlined the problems of the tribals who lived in scattered habitations of less than 250 people, and hence were still deprived of
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INNOVATION
National Innovation Council felicitates 6 innovators >> A bunch of innovators from IITs, students and professionals whose innovations would help to reduce the labor of people at the bottom of the pyramid were felicitated by the National Innovation Council chaired by Sam Pitroda. The six winning innovations which include novel design of a rickshaw, a human powered motor, display unit for street vendors, a lowcost cycle for physically challenged would help reduce the drudgery of construction workers and sanitation workers. Stating that the National Innovation
>>
A bunch of three techno-enthusiasts have developed a software through which, people sitting in the remote areas can access healthcare services in the country. The software, called Remote Doctor, provides an intelligent healthcare system that allows people from all over India to reach medical experts across the country and get their problems solved. On top of that, the second component of the software, iDoc, can also be used as a predictive tool to prevent future illnesses and gives a broad picture of the occurrence and spread of various diseases by geographical location. The Maharashtra-based team Imaginary has come up with a concept that can do wonders for the penetration of medical services into the hinterland of India. That tall task is what Team Imaginary, comprising three students from VES Institute of Technology, Mumbai, set out to accomplish M Goutam, Mihir Sathe and Nishkam Razdan say that the “main problem with medical care in rural India is that on most occasions, people in these areas are just too far away from any medical centre, and they also neglect regular check-ups and only go to the doctor when they are very sick”.
For rural poor, healthcare now a click away
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Council’s primary focus is to drive innovation that benefits the common citizen, Pitroda said, “For too long, innovation has been focussed on the problems of the rich”. Pitroda said he felt “frustrated” seeing news on Food Corporation of India or mines on TV, showing images of the workers carrying huge gunny bag in the back or the women carrying 20 bricks on their head. India has developed “great technology, great inventions and great scientists”, but “we can’t fix simple things for the working class”, he said.
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cover story
Leveraging
RURAL markets
With the rising incomes that has come into the hands of the rural consumer of late, primarily on account of a sustained rise in agri-produce prices and MNREGA spending, the attraction for the rural markets has augmented. Now, India Inc is earnestly thrusting its way to the rural markets across the country. Praveen K Singh evaluates the state of affairs
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cover story
T
he Annual Budget 2012 has further strengthened the rural story with a plan for additional credit outlay, interest subvention and MNREGA getting indexed to CPI inflation. These initiatives are expected to hasten the accelerated shift to brands and premiumisation happening across categories in the rural marketplace. In rural India today, most companies have typically added a layer in the channel to account for the last mile. The attempt has been to set up as many last level stock points to expand penetration as much as possible. For awareness, the usual options in the below-the-line (BTL) space have been applied—wall paintings, van promotions, hoardings etc, apart from mass media options.
EMERGENCE OF THE MARKET In a diverse market like India, having second largest population in the world, the urban-rural divide is quite significant. According to various studies, around 12.2 per cent of the world’s population lives in rural India. Considering this as an untapped potential, a special marketing strategy, namely, rural marketing has emerged. It involves delivering manufactured or processed inputs or services to rural producers or consumers. Another reason that rural market is gaining
importance is due to competition in the urban market, the market is reaching towards saturation level as higher capacity of the purchasers have been targeted by the marketers. So the marketers are looking for extending their product offerings to an unexplored market i.e. the rural market. This has also led to the CSR activities being done by the corporate to help the poor people attain some wealth to spend on their product categories. Some of the focused rural initiatives in the Indian market include Project Shakti by HUL, Gaon Chalo by Tata Global Beverages and e-Choupal by ITC. These companies have significantly increased their rural presence through these models, especially HUL. Also this will increase their brand loyalty as well as recognition in that area. While these initiatives have been a definite enabler for rural market reach, their selfsufficiency and, thus, scale-up potential has always remained an ongoing debate.
APING URBAN LIFESTYLE Rural market can be segmented using the concept of “urban orientation”. Urban orientation is defined as the degree to which a rural consumer would like to replicate the urban lifestyle. The higher the urban orientation, the higher will be the requirements for goods and services consumed in urban India and vice-versa. Also an interesting fact, July 2012
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cover story most of the Indian villages have a population of less than 1,000, while there are only a few villages where more than 10,000 people live. With such a widespread market, marketers have been finding it difficult to penetrate this vast audience. For a rural marketer, it may not be commercially viable to reach out to villages that have a population of less than 2,000 people, which constitutes 87 per cent of the villages in India. Most of the rural audience in the smaller villages come to shop at a nearby ‘haat’ or travel to a nearby bigger village. Hence, if the marketer is focussing on those 13 per cent (75,000) villages, it is possible to cover almost all of the Indian rural audience.
ASPIRING FOR CONTEMPORARY PRODUCTS Rural consumers are buying more premium health, hygiene, personal grooming, packaged foods and convenience consumer packaged products, reflecting aspiraThe rural consumer tions towards changes is aspiring for similar in lifestyle. brands as the urban one. The milk food and However, the choice of drinks category in rural SKU (stock-keeping unit India saw volumes grow by 41 per cent or pack) is driven by the in 2011 from the year disposable income ago compared with 8 per cent expansion in Tarun Arora 2010. Shampoos grew Executive Vice- President, Marketing, Godrej Consumer 12 per cent versus 4 Products Ltd per cent, while toilet and bathroom cleaners accelerated 25 per cent from 10 per cent, according to IMRB International, the research division of Hindustan Thompson Associates (HTA). While personal care and household care product volume slowed to 3 per cent and 4 per cent, from 4 per cent and 10 per cent, respectively, premium products had significant growth. For instance, while soaps grew 3 per cent and detergent cakes recorded flat growth in 2011,
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“premium category brands (Dove, Pears, Dettol) grew in double digits,” said Manoj Menon, group business director, IMRB. Industry experts said the increase may have been fuelled by increased media exposure, better education and welfare programmes such as the Mahatma Gandhi National Rural Employment Guarantee Scheme putting more money in the hands of the rural consumer. According to the 66th round of the household consumption expenditure survey of the National Sample Survey Organisation (NSSO) released in July last year, the monthly per capita expenditure (MPCE) in rural India was Rs.953.05 in 200910—an increase of 64.6 per cent from 200405. The share of food in total consumption has declined since 1987-88 by about 10 percentage points to 53.6 per cent in the rural sector, giving the rural consumer more money to spend on nonfood items, which include consumer durables, education and recreation. “The rural consumer is aspiring for similar brands as the urban one. However, the choice of SKU (stock-keeping unit or pack) is driven by the disposable income,” said Tarun Arora, executive vice- president, marketing, Godrej Consumer Products Ltd. The “low-smoke” mosquito
cover story coil that’s part of the company’s household insecticides category saw increased traction in the interiors although it is priced higher than regular coils. Godrej’s Cinthol Soap Regular, which is priced at a premium in Tamil Nadu, has also grown significantly, added Arora. “If we look at the rural and urban consumer, their choice of categories is the same—education, food, housing. Within that though their spend levels may differ,” said Amitabh Mall, partner and director at the Boston Consulting Group, a global management consulting firm. The demand for premium products was supplemented with increased availability. For instance, the penetration of premium soaps increased from 37 per cent in 2007 to 47 per cent in 2011. Penetration of premium shampoos increased from 28 per cent to 81 per cent and that of premium toothpastes increased from 31 per cent to 47 per cent in the same period, according to IMRB International. In the past three years, 400 towns with a population of 100,000 to one million added over 250 stores, each
“If we look at the rural and urban consumer, their choice of categories is the same— education, food, housing. Within that though, their spend levels may differ” Amitabh Mall
Partner and Director at the Boston Consulting Group
selling consumer packaged goods, according to a December 2011 report by Nielsen, Managing the Middle India Gold Rush. India’s largest consumer packaged goods company by revenue, Hindustan Unilever Ltd, more than doubled its direct reach, covering more than two million outlets in the
past three years. “This provides us an opportunity to take an assortment of products to rural areas,” said an HUL spokesperson while explaining that in a market like India, the secular trend shows upgrading to premium products across rural and urban markets. Likewise for PepsiCo India Holdings Pvt. Ltd, which has over the past few years increased its sales force, sharpened its go-to-market (G2M) strategy and invested in supply chain, coolers and increased capacities. This has resulted in the rural market growing at twice the rate of the urban segment, said a PepsiCo India spokesperson. However, the purchasing power of the rural consumer could weaken.
Non-agricultural Establishments in Rural India Health and social work 2% Transport and storage 4% Hotels and Restaurants 4% Education 5% Community, social and personal services 8% Others 12% Manufacturing 26% Retail trade 39%
Source: Economic Census 2005
Some of the focused rural initiatives in the Indian market include Project Shakti by HUL, Gaon Chalo by Tata Global Beverages and e-Choupal by ITC. These companies have significantly increased their rural presence through these models, especially HUL July 2012
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MOBILE PENETRATION
100
80
The rural consumer is more exposed and aware now than he has ever been in the past. He also has more choices and more brands trying to fit into his mind space. Becoming increasingly important for brands looking for fresh growth beyond urban India’s market penetration, especially in the larger towns and cities, rural consumers are no longer a simple target to woo, as their exposures and growing awareness have made them more discerning than earlier. At the same time, their aspirations for consuming branded and more sophisticated products make them very attractive for brands. The two paradigm shifts that have affected rural consumer behaviour are rooted in urbanisation and the advent of the mobile phone. Urbanisation has changed the credentials of the influencer. Earlier, influence was a function of designation or social status; in the last few years, villagers who have either studied or worked in larger cities are seen as the trendsetters. Living and studying with their urban counterparts translates into increased exposure across all facets ranging from everyday product choices to financial instruments. Mobile phones have given the rural consumer more than just mere connectivity. The device is their gateway to information and entertainment. Chinese phones are very successful in the rural markets because they
Beverage
42
60
40
The changing wallet share in Rural India
Housing & utilities
(in per cent)
20
Apparel
Travel & transport Personal care
11
8
Education Recreation
0
3
5
2001-02
6
Durables
6 7
58
10
Healthcare
1
6 3
3 5
8
3
13
2010 Source: NSSO and Edelweiss – MART Survey
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are equipped with technology to play songs and cameras to capture pictures, adding to which most handsets are stylishly designed. The mobile phone is the villager’s ‘remote control’ to the world and is helping him find daily mandi rates as well as control water pumps from the comfort of his house. We need to prepare for the next generation of digital natives from the villages of India. Since a majority of our country still lives in rural India, rural marketing cannot be very different from mainstream marketing; the same principles apply. Today, rural marketing is not just a media challenge — the message and communication design is critical. Yes, ‘value proposition’ is still very critical in the rural areas and sometimes price and SKUs need to be designed price-backwards, but aesthetics are important as well. If a company is manufacturing to target the mass market, what the rural consumer thinks of its brand is key to its success or failure. Brands have realised that while ‘share of desire’ is more important than share of pocket even in the rural markets, communication from most brands is focused on the feel-good factor. Many brands are now focusing their energies into influencer and network marketing to target the wary rural consumer. Communication
cover story parameters have shifted from communicating the generic benefit of progress to multiple attribute reassurance. The mediums traditionally used for targeting the rural consumer still hold good because most of them are focused around congregation. The challenge today’s marketing managers face is how to use those mediums differently to create conversation. A brand needs to look at the channel and succinctly outline the role that it plays in the idea. Marketers need to work out how they can drive retail advocacy, or run programmes in melas and market places that people remember. Mobile phones, transit points and the like are all important mediums. Brands need to work at making the messages relevant to the channel. Rural activation needs to provide novelty experiences to be remembered. Generic, run-of-the-mill activations may meet tactical objectives but will fail to leave a brand imprint on the rural
consumers’ mind. Products and SKU’s may be value for money but they cannot be cheap, social status is of great importance. Retailer is a key influencer; he is their interface with the company and on many occasions the provider of finance (credit) and assurance. The rural consumers trust people, not companies. As a result networks and influencers are of great importance. Share of desire is greater than share of pocket.
IDENTIFYING MICRO-MARKETS The next challenge for any company would be actually reaching and servicing the identified micro-markets through a sustainable and replicable model. There could be multiple route-to-market (RtM) options that get generated based on the nature of product, current market share, brand awareness, geography dynamics, value-volume ratio and internal capabilities. Innovative RtM options could
Industry experts believe that the increase may have been fuelled by increased media exposure, better education and welfare programmes such as the Mahatma Gandhi National Rural Employment Guarantee Scheme putting more money in the hands of the rural consumers
Household penetration of rural products in India
Household penetration of selected durables in rural India 37
25 20 14
11 6
6
5
3
1
1
1
Source: Data taken from IRS, Q1 – 2010 published in “Households – durables penetration” in Media Market Guide India 2010 by R.K. Swamy Media Group
Source: Data taken from IRS, Q1- 2010 published in “Households-other product consumption” in Media Market Guide India 2010 by R.K. Swamy Media Group.
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involve (1) dedicated rural entrepreneurs, (2) distributor consolidation for urban and rural markets, (3) consolidated distribution with tele-order bookings, and (4) leveraging reverse logistics potential with partner sectors like dairy. Companies would need to identify an optimum mix of RtM options through a detailed qualitative and financial assessment. This mix should balance flexibility of having more than one model in various geographies and the need for standardisation. Developing the ‘optimum’ RtM strategy would be an incomplete task without the communication strategy for the micro-markets. This should take into account factors like brand awareness in that area, profile of resident consumers and other local parameters like penetration of mass media, literacy levels, geographic spread of villages etc. The remaining key pieces of the rural strategy jigsaw puzzle would be realignment of human capital and the company’s supply chain. It is important to note
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Most of the Indian villages have a population of less than 1,000, while there are only a few villages where more than 10,000 people live. With such a widespread market, marketers have been finding it difficult to penetrate this vast audience. For a rural marketer, it may not be commercially viable to reach out to villages that have a population of less than 2,000 people which constitutes 87 per cent of the villages in India
here that any alterations in product portfolio would have to be justified by significant market potential only. The rural strategy framework discussed in this article is what Tata Strategic proposes as a robust but flexible approach (Rural StratTM) in rural markets.
THE ROADBLOCKS Definitely there is huge untapped potential in rural India. But there are hindrances as well. The greatest hindrance is that the rural market is still evolving and there is no set format to understand consumer behaviour. In spite of attraction, it is not easy to enter the market and grab a sizeable share of the market, in the short time. Some of the reasons could be: Low Literacy and Communication: There are not enough opportunities for education in rural areas. The literacy level is as low (36 per cent) when compared to all- India average of 52 per cent. Due to this, the
cover story consumers cannot understand the message that has been communicated through advertisement of the products and services. Seasonal Demand: Demand for goods in rural markets depends upon agricultural situation, as agriculture is the main source of income. Agriculture to a large extent depends upon monsoon and, therefore, the demand or buying capacity is not stable or regular. Transportation: Many rural areas are not
The Status of Rural Enterprises in India
companies innovated on package sizes to introduce low price points. They have customized promotional strategies for rural markets using local language and talent. Some FMCG players continue to expand rural penetration (Tata Tea’s Gaon Chalo). Coca-Cola’s Parivartan program has trained more than 6,000 retailers to display and stock products. Dabur has created a training module ASTRA (advanced sales training for retail ascendance) in several regional languages. A number of auto companies have launched rural-specific campaigns. Marketing strategies that worked for urban markets do not necessarily work for the rural ones.
Rural Enterprises
1990
1998
2005
Agricultural Enterprises (million)
2.08
3.18
5.71
Non-agricultural Enterprises (million)
12.28
14.01
19.83
Total Rural Enterprises (million)
14.36
17.19
25.54
Total Number of Workers Employed (million)
32.17
38.13
52.07
WHO ALL WILL STAY
Growth of Workers (%)
2.88
2.15
4.55
Lot of study is still to be conducted in order to understand the rural consumer. Only FMCGs with deeper pockets, unwavering rural commitment and staying power will be able to stay longer on this rural race and hence should venture into this territory. Experts of the domain also cogitate as to what is the right approach to profitably serve the rural consumer in India. Companies often tend to see this entire rural mass through the same lens—having similar market potential thus similar business benefits. To an extent, this is a result of most current market insight tools that leave prioritisation to state-level data and prevalent notions of market potential and consumer affluence. Rural India is no longer a futuristic objective for consumer-facing companies The companies want to be part of the rural consumption growth story playing out today in various consumer-facing segments. A scalable, profitable rural expansion model would definitely be vital for companies to create a sustainable competitive advantage in the market place. n n
Source: Economic Census, 2005
connected by rail transport. Kacha roads become unserviceable during monsoons and interior villages get isolated. Distribution: An effective distribution system requires village-level shopkeeper, Mandal / Taluka- level wholesaler or preferred dealer, distributor or stockist at district level and company-owned depot or consignment distribution at state level. The presence of too many tiers in the distribution system increases the cost of distribution.
STRATEGISING GROWTH Keeping these difficulties in mind and to meet the objectives of Rural Marketing, the traditional four P’s of marketing Product, Price, Place and Promotion have been replaced by a different framework for analysis. A number of companies have worked on various elements of the marketing mix to improve the four A’s Affordability, Awareness, Availability and Acceptability for rural markets. FMCG
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C
onsultancy and Research for Environmental Management, a Netherlands based research organisation defines the need for CSR in its report that CSR is not about charity, but that it belongs to the core business of a company and therefore should be an integral part of doing business.
Reality or Hogwash?
Corporate Social Responsibility for present-day business houses has become an effective tool to generate media hype and a healthy reputation in the market. While some corporate houses are sincerely working towards the cause, there are many who are just making big claims. Madhvendra S Chauhan investigates campaigns of some of these corporate houses to ascertain the truth CSR for companies operating in India has become a tool to garner better support of the consumers and has turned out to be an effective tool to mint profits. Although, the government has left CSR activities to corporate houses but nobody appears to be clear about it. Indian as well as multinational companies are spending some of their earning shares to ‘uplift’ the face of the society. CSR in India is still at nascent stage and ground reality for all big and optimistic claims by these companies remains just opposite to what they show in glossy newsletters and on their websites. It might
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not be the case for all the companies way in removing the vagueness isn’t expected to be the last word on but there is huge discrepancy in their that exists about the term. Today, mandatory CSR spending. However claims and in the ground work. CSR to some companies means in meetings with industry, Deora has The problem with corporate providing lunch to employees. To repeatedly expressed the personal social responsibility (CSR) is that others, it’s about tackling global view that CSR should be compulnobody is very clear about what warming and environmental issues. sory. In the latest round of recomexactly it encompasses. mendations, the government The Indian government CSR in India is still at nascent stage and ground reality asks that companies should has been trying to for all big and optimistic claims by these companies keep a tab on CSR spending make it mandatory for and disclose it to their prinremains just opposite to what they show in glossy companies to spend at cipal stakeholders. newsletters and claims they make on their websites least 2 per cent of net profits on CSR. Facing DOERS & NOISEMAKERS strong criticism, it gave up the effort Instead of defining CSR, the Indian Companies like Bajaj, Hero, Mahindra in mid-July and made the spending government recast it as “responsible & Mahindra, TATA etc. are spending voluntary. But the debate continues. business” in a set of voluntary a lot on the CSR activities and If the proposed rule had come into guidelines for firms released by then changes, which they have brought play, the government would have Union minister of corporate affairs through these activities are visible had to spell out what constitutes Murli Deora last year. in the areas they operate in. For CSR. That would have gone some The recent unsuccessful effort instance, Bajaj as one of the leading July 2012
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The problem with CSR is that nobody is very clear about what exactly it encompasses. The government has been trying to make it mandatory for companies to spend at least 2 per cent of net profits on CSR. Facing strong criticism, it gave up the effort in mid-July and made the spending voluntary. But the debate continues automaker of India contributes significantly in the modernisation of villages. Education is another area where Bajaj gives a lot of its attention. These rural development activities by Bajaj are aimed at income generation, health, sanitation, supply of pure drinking water, improved agricultural practices, horticulture, social forestry and waste-land reclamation as well as training youth for self-employment. According to the officials in Bajaj, Few villages are also being developed as models of rural development. In Wardha, the emphasis of the company has been on construction and propagation of low-cost individual latrines. More than 10,000 latrines in more than 150 villages have been constructed in the Wardha district.
Apart from this the company also helps brilliant students from the economically weaker sections to get free coaching for higher studies. Coca-Cola, a soft drinks major supports schools particularly in rural areas to ‘make them healthy, active & happy’ schools. But the very obvious question that triggers in the mind of the people- are they paying a fraction of what they are taking from us? Controversies have always hovered around CSR in the world and India is no different. Though there have been some genuine efforts to change the lives of the poor and illiterate but on the other hand there are companies which are making noise just to grab headlines and take credit. One of such companies are running long
“The twentieth century has been characterised by three developments of great political importance: the growth of democracy, the growth of corporate power and the growth of corporate propaganda to protect corporate power against democracy.” Alex Carey Australian Social Psychologist, on importance of CSR
For the empowerment of women, Bajaj established Janaki Devi Gram Vikas Sanstha in 1987. The main objective of this trust is to act as a catalyst for the participation of rural community in improving their quality of life, eliminating poverty, empowering women, development of human and natural resources, promoting ecological balance, etc. Presently this is done in 24 remote and backward villages in Khed and Maval talukas of Pune, Paithan and Gangapur talukas of Aurangabad. The company has also set up an award of Rs. 3 Lakh to support women entrepreneurs. It also runs two hospitals to help rural people access better health services.
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television advertisements to show that they are changing the lives and spreading happiness but there is a stark difference between claims and reality. The same company is facing the flack of the tribal people of Odisha for forcefully acquiring their land as well as a hill which these people consider as their presiding deity.
THE BACKDROP Corporate social responsibility (CSR) evolved as a response to the threat anti-corporate campaigns pose to companies’ license to operate. But corporate social responsibility is a contradiction in terms. Companies are
main feature
legally bound to maximise profits to shareholders. This duty to make money above all other considerations means that corporations can only be ‘socially responsible’ if they are being insincere. Any doubtful social benefits from CSR are outweighed by the losses to society in other areas. Claire Fauset, Corporate Structures Researcher, a Netherlands based research organisation writes in her report on “CSR is an effective strategy for: bolstering a company’s public image; avoiding regulation; gaining legitimacy and access to markets and decision makers; and shifting the ground towards privatisation of public functions. CSR enables business to propose ineffective, voluntary, market-based solutions to social and environmental crises under guise of being responsible.” This deflects blame for problems caused by corporate operations away from the company, and protects companies’ interests while hampering efforts to tackle the root causes of social and environmental injustice. CSR does not pose any sustainable solutions. It can easily be reversed if the economic climate changes. As well as being voluntary, it reinforces rather than challenges the power of corporations. A genuinely socially responsible company would look so different from today’s corporations as to be unrecognisable. Tackling the big issues of overconsumption, climate change and massive economic
Controversies have always hovered around CSR in the world and India is no different. Though, there have been some genuine efforts to change the lives of the poor and illiterate but on the other hand there are companies which are making noise just to grab headlines and take credit inequality requires major shifts in our lifestyles and systems of social organisation. CSR seems to present us with an easy alternative – using corporate power as a lever for social change rather than seeing it as an obstacle. Ultimately, CSR is not a step towards a more fundamental reform of the corporate structure but a distraction from it. Exposing and rejecting CSR is a step towards addressing corporate power. In this new era of competitive business when urban markets worldwide have either reached to saturation or are at the brink of it, CSR has provided an opportunity to the business community to explore to some of the untapped markets. Corporate houses are under pressure to explore new avenues to survive in the market. In a developing
“For CSR, we have worked out a very acceptable formula, which has been welcomed by corporate bodies as well as in the country. At the same time, providing that kind of the cushion to ensure that compliance of CSR will be formed to become the part and parcel of the responsibility of the respective companies. Under the provisions of the Act, they need to explain it to the country and not only to the ministry.” Dr. M. Veerappa Moily
Minister, Corporate Affairs
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Since companies cannot act in any wider interest than the interest of their shareholders to make profit, CSR is of limited use in creating social change. Since CSR is also a vehicle for companies to thwart attempts to control corporate power and to gain access to markets, CSR is a problem not a solution.
economy like India where more than 65 per cent population is living in the rural has provided a new business window to Indian as well as multinational companies. They have realised the potential of this fragmented but untapped market and many companies have started wooing their potential consumers through various activities, one of them being CSR as well. With the emergence of new marketRural, more and more companies are venturing into this potentially crucial and untapped market through several new business initiatives. With this huge opportunity comes the social responsibility for the companies to payback something to the people from whom they are making larger profits.
THE RATIONALE Arguments put forward by business to convince us that they are serious about social responsibility. What it would mean for a corporation to be socially responsible. Why this is incompatible with the way the corporation is structured. Why the corporation can never disinterestedly work for the public good. Since companies cannot act in any wider interest than the interest of their
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shareholders to make profit, CSR is of limited use in creating social change. Since CSR is also a vehicle for companies to thwart attempts to control corporate power and to gain access to markets, CSR is a problem not a solution. Efforts to control corporations’ destructive impacts must have a critique of corporate power at their heart and a will to dismantle corporate power as their goal, otherwise they reinforce rather than challenge power structures, and undermine popular struggles for autonomy, democracy, human rights and environmental sustainability. If CSR is the wrong strategy then the million dollar question is, which strategies will be effective in this struggle?
GOVERNMENT’S VIGIL Regulation is a key step in achieving this power shift. But it will happen only when the pressure is greater for governments to regulate than it is for them to listen to the corporate lobby. And here in India the government has succumbed to the pressure of corporate lobby. Campaigns pushing for binding regulation of corporations cannot be successful in isolation from confrontational campaigns attacking the corporate power base. n
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spot light
The journey of Tilonia from a nondescript Rajasthani village to a village that catches global attention is a story of commitment, hard work and above all peoples’ penchant to go beyond the fated lines. Madhvendra S Chauhan reports from ground zero about this model village and its miraculous tale of transformation that changed hundreds of lives
G
ulab Bai like many other women of her society used to sit for an afternoon chat in her courtyard because after finishing her daily household chores she had enough time for it. Her husband used to toil hard till late in the evening to make ends meet but the challenge of feeding the family was always there and this used to give many agonising moments to Gulab. She wanted to contribute in the family’s earnings but there was no other source of employment available in Tilonia, a small village of few hundred people near Ajmer in Rajasthan, unless one day when someone told her about Social Work and Research Centre (SWRC), which is now popularly known as Barefoot College. Started in 1972 as a non-governmental organisation by Sanjeet Bunker Roy, the Barefoot College imparts
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Learning by doing: A familiar practice in design — is the philosophy used in training at Barefoot.
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A night school in Tilonia: Till date, 15,000 children have passed through these schools.
vocational training to illiterate men and dentists, health workers, balsevikas, women and so far has produced hundreds solar engineers, solar cooker engineers, of ‘Barefoot Professionals’ like Gulab. water drillers, hand pump mechanics, She was trained in solar engineering architects, artisans, designers, masons, and now proudly earns her living through communicators, water testers, phone it. Several illiterate women like Gulab operators, blacksmiths, carpenters, who, before joining Barefoot College computer instructors, accountants and were leading their lives without any kabaad-se-jugaad professionals. purpose have found a way MAN ON A MISSION to utilise their traditional Generating Sanjit ‘Bunker’ Roy, the skills and knowledge. founder of this college, Turning women especially is no ordinary man. He grandmothers into solar income got his education in some engineers is one of Bunker for more than of India’s top schools Roy’s favorite jobs and for and universities and ‘was the credit he has turned so supposed to be doctor, many of them already. rural artisans in engineer or a diplomat’ Apart from turning as his parents dreamt of these old and young men him for. But he decided to and women from economivillages tread a different path and cally weaker section of so‘thought of contributing’ ciety into solar engineers, something back from he also promoted Indian whatever he got. The worst Bihar famine, traditional art and thus turned these peoas he says, moved him and he decided to ples’ hobbies into a source of earning for live in a village for the rest of his life to them. give something back to the society. The In these professionals there are decision came as a shock to his parents doctors, school teachers, midwives,
$ 250,000 400 50
July 2012
More than 400 artisans, most of them women, earn supplemental income through sewing, needlework, embroidery, tie-dying, block printing and weaving. Online enterprise, www. tilonia.com, help these people in selling and marketing of the Tilonia product line.
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The pride earner: With the help from Barefoot College, women are contributing to the family incomes with pride
as well as to his colleagues, who wanted to see him in some topnotch job. But he remained committed to his decision despite the fact that his mother had decided not to speak www.tilonia.com to him. He headed to this small helps artisans to sell village and with the help of the their products globally. villagers, among whom he spent several nights and days, formed the Making an earning of Barefoot College. The formation, according to him was not that easy as ‘there were several challenges before us’. per annum “Here teachers are the learners and learners are the teachers”, says Bunker Roy. The college from the very beginning does not employ any teacher with professional degrees, and those who teach here are from ‘their own community’ and have been trained by the college to impart their acquired knowledge to others. The college came as change-maker in peoples’ lives and the impact of it is visible in and around Tilonia where people from other parts of the globe are coming to learn. The villagers are no longer unemployed or illiterate. With the help of this college, they are now making good money and have access to some of the modern facilities like internet, FM Radio etc.
`60 lacs
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Out of Veil: More & more women are getting empowered through various initiatives by the College
There is no dearth of good and skilled artisans in India but due to illiteracy and lack of employment opportunities, these people are now gradually shifting to some other professions to earn a better living. Rajasthan was no exception. Many such artisans were migrating to cities to get better employment opportunities, leaving behind their traditional art and craft. In 1975, the college realised the need to revive the rural craft production and started promoting it to address the problem of unemployment. With the help of an US based non-profit organization Friends of Tilonia, the college helped these people in improving designs and techniques, creation of marketing outlets. Training and materials provided by the college also enables women to work from home, helping them to generate income from their needlework or other handicrafts. Today village artisans have a dedicated website to help them sell their products in the international market through it and now their turn over is
spot light above Rs 60 lacs annually. The crafts are also sold through retail shops and other outlets in India, Europe and Canada, generating US $ 250,000 in income for more than 400 rural artisans in 50 villages. The college has participated in international trade shows and other markets. Products range made by these rural artisans include clothing and accessories, decorative home furnishings, furniture, rugs, textiles, handmade paper products, puppets and other toys, metalwork, and leather goods.
EXTENDING TO A POINT The Barefoot College till date has trained over 3 million people for jobs in the modern world, in buildings so rudimentary that they have dirt floors and no chairs. This bottomup approach is designed to make poor students feel comfortable. The college’s “barefoot professionals” then return home to use their new skills. The main attraction of the
worth acknowledging. The college and its founder Bunker Roy have won several accolades from both domestic as well as international leaders for the noble work they are doing to transform the lives of so many rural people. The college’s major emphasis is on the holistic development of women by empowering them economically and financially. Kailash Kanwar who is the crafts coordinator at Barefoot College says, “The financial condition of my sasural was very bad and the home front was precarious so my father-in-law brought me here in search of some employment. With the help of the college and people, I learnt sewing and different forms of designing and patterns.” Now she, like many other women in Tilonia makes good money. Initially there was resistance from the family and they wanted that Kailash should return to her in-laws home to live like other women in
The operation of the online store is managed by the Barefoot managers of Hatheli Sansthan. While sales figures vary year to year, generally about 15 per cent of Hatheli Sansthan’s sales are via the online store. Ellen Fish
Executive Director, Friends of Tilonia
college is its solar engineering workshop. Here people, mostly old women are trained in the art of fabricating solar energy panels. These women who get three months hands on training in making photovoltaic plates are from many countries including Afghanistan, Cameroon, Gambia, Mali and Sierra Leone. The global response received by the SWRC is
the Rajput community live. But she refused and now leads a happy life with support from her family. “I feel proud that I am self dependent and can financially help my family. My suggestion to any woman of my community whom I meet is to come out of the veil and learn something worthwhile to stand on her own feet.” She adds further.
The change agent: Bunker Roy’s penchant to bring some change in the lives of rural people inspired him to build the Barefoot College.
Roy’s Accomplishments n The Arab Gulf Fund for the United Nations (AGFUND) Award for promoting Volunteerism n The World Technology Award for Social Entrepreneurship n The Schwab Foundation for Social Entrepreneurship n The Stockholm Challenge Award for Information Technology n The NASDAQ Stock Market Education Award n The Tyler Prize n The St Andrews Prize for the Environment – 2003 n Named 100 most influential personalities in the world in 2010 n First Indian to get conferred the Robert Hill Award.
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spot light The solar warriors: Women from as many as 26 countries have been trained in making solar plates.
SWRC has already provided solar lighting solutions to 500 villages and clusters not only in India but also in Bhutan, Afghanistan and Kazakhstan. Women solar engineers from 26 African countries have already been trained
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TURN INSIDE OUT The education has brought so many changes in and around Tilonia. Now women like Nourti Devi who is 60 years old, can aptly use computers. She has been trained in one of the night schools of the village and now works as a data resource centre and computer teacher for the college. These night schools, open from 4.30 pm to 7.30 pm are meant for children who are busy doing fieldwork in the morning. The students study under solar-powered lanterns and they are welcomed to pursue education till primary level. SWRC Tilonia has 150 such night schools in 150 villages and 250 across India. SWRC has already provided solar lighting solutions to 500 villages and clusters not only in India but also in Bhutan, Afghanistan and Kazakhstan, covering 12,000 households, 870 schools and 300 adult education centers. Women solar engineers from 26 African countries have already been trained. Bunker Roy has turned a village into a modern day wonder for the world through his sharp intellect and humanitarian approach. Venting his anger against political unwillingness to eradicate poverty, he wrote in the New York Times, “The intellectual
activists behind the Millennium Development Goals (MDGs) who sit in New York are making sure the goals will remain unreachable. Over the last 34 years, having lived and worked with the rural poor earning less than a dollar a day in India, I have ceased to be surprised by the incredible ignorance, stupidity and hype that’s generated to tackle extreme poverty. Ever so often, jobless politicians find themselves heading Commissions.” He asserts that genuine efforts in the right direction are always paid and Barefoot College is one of the best examples of it. India’s diverse community base has strong traditional knowledge and art to show to the world but lack of efforts from the government have proved perilous for some of the excellent art forms of the country and many of them are now extinct or are on the verge of it because people who were apt in it have abandoned these art forms. Initiatives like Barefoot College, should be replicated in other parts of the country so that many dying art and craft forms can be saved. Through such models, not only women are empowered but the communities become self reliant and economically stable. n
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interview
“While some NGOs are doing good job, others are just draining off public funds” Union Minister for Rural Development, Drinking Water and Sanitation, JAIRAM RAMESH has said that while a counted few of the NGOs are doing commendable job in the country, there are some which are more involved in draining off the public funds in the social sector. In an exclusive chat with Praveen K Singh, the minister said, “I request these so-called activists working through NGOs to stick to their social work, not don a Gandhi cap or enter the realm of politics.” On the issue of cleanliness and hygiene in the country, he said, “Sanitation is a complete disaster in our country. For this, we need to make the issue a national obsession otherwise it would remain as a scourge on the society.” 42
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How was the Budget 2012-13? Are you satisfied with the allocation made to the rural development sector? This was a trendsetting Budget from the rural sector’s point of view with allocations for rural development increased by Rs 8,000 Crore. The allocation for rural development including drinking water, sanitation and social welfare is Rs.91,000 Crore in 2011-12 and has gone up to about Rs 99,000 Crore for 2012-13. This is a very very substantial increase. And, I thank the Finance Minister Pranab Mukherjee for the hike. I thank the Finance Minister for presenting the budget in which he has accepted all the recommendations relating to the Ministry of Rural Development, Drinking Water and Sanitation. It is an important achievement. Recognising the importance of Rural Drinking Water Supply and Sanitation, the Finance Minister has made an allocation of Rs14,000 Crore for it in 2012-2013. Last year, the actual expenditure on
interview drinking water and sanitation was Rs10,000 Crore as opposed to an allocation of Rs11,000 Crore. The FM has assured me that the budget can go up to Rs15,000 Crore as far as the importance of drinking water and sanitation is concerned. Simlarly, PMGSY, the centre’s rural road scheme, has got a boost in the budget with an increase of Rs 4000 Crore. With this the total allocation for the programme will substantially go up from Rs 20000 Crore to Rs 24000 Crore. This will help us to accelerate the PMGSY in Bihar, Jharkhand, Chhattisgarh, Madhya Pradesh, Orissa, Assam and West Bengal. The FM has made important announcements on Women’s Self Help Groups helping them to take a huge step forward on issues related to livelihood of rural women. For Women’s Self Help Groups, the FM has pegged the interest rate at seven percent and those groups, which repay on time, will have to pay only four percent. The Budget also proposed to establish a Bharat Livelihood Foundation in PPP mode to support the civil society organisations in 170 districts in central India, based on a suggestion made by us. The FM has made provisions for a corpus fund of Rs 500 Crore from the Government for this purpose. It will draw Rs 500 Crore from private trusts and state governments to make it a corpus fund of Rs 1000 Crore. This is a very important initiative to involve civil society organisations in Rural Development in Central India’s tribal belt. The FM has also increased the widow pension scheme from Rs 200 to Rs 300 and disability pension scheme again from Rs 200 to Rs 300 per month. The only suggestion which we had made but did not find its reflection in the budget was the demand to start the widow pension scheme at the age of 20. To construct a world class water quality research centre in Kolkata with focus on arsenic pollutants, the FM has also allocated Rs 50 Crore in the Budget. The research centre will be set up very quickly in Kolkata. I am grateful that the Finance Minister has accepted all our recommendations. How much hike has been given to the daily wage scheme under the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) and how will it impact in the rise of rural jobs? Wages under the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) are set to rise from April 1, with the Centre linking the wage with the Consumer Price Index for Agricultural Labour (CPIAL) for the fiscal 2012-13. A notification revising MNREGA wage rates for the period April 1, 2012 to March 31, 2013 indexed to CPIAL is now being issued.
Funds Allocation Up by 8,000 Crore Sanitation, Drinking Water & Social Welfare 2011-12 91,000 Crore 2012-13 99,000 Crore Drinking Water & Sanitation 2010-11 10,000 Crore 2012-13 14,000 Crore Widow Pension Scheme 2011-12 – 2012-13 –
200 300
Disability Pension Scheme 2011-12 – 2012-13 –
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200 300
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interview For example, now, MNREGA workers in Karnataka will get Rs 155 per day as against the present wage of Rs 125. Lately, there has been spurt in the cases of misappropriation of funds in the implementation of MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) scheme and issuing of fake job cards by the local authorities. These have been widespread in number of states across the country. How your ministry is handling these complaints and is working on plugging the gaps in terms of preventing the corruption cases ? We have written to state governments to give an explanation about the action taken on several complaints of misappropriation of funds in the implementation of MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) scheme. We have asked these states to send a report on the action taken and provide the status of pending complaints. The MNREGS national monitor is also conducting inquiry in number of such cases and the outcome will be released shortly. We have also told them that the new funds would be released shortly and these state governments need to ensure its timely use. Time has come for second generation reforms in the implementation of MNREGA. We are conducting widespread consultations with state governments and various groups. All these have thrown up many new ideas and some of them will be incorporated in the MNREGA 2.0 and the shortcomings MNREGA workers in in the implementation Karnataka will get of the Job Scheme will be tackled effectively. MNREGA has empowered the per day destitute and backward as against the sections in the rural present wage of areas. We have identified several shortcomings in its implementation and will rectify the same. The state specific work allocation may
`155 `125
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become part of the second generation reforms as several state governments have called for nonrigid guidelines and changes in the administrative mechanisms. Recently when the Planning Commission released the data on people living below the poverty line, there was a huge hue and cry on the fall of estimates of people falling below the poverty line. What is your reaction on this embarrassing poverty estimates put out by the Planning Commission? We are the only country in the world where vested interests want to keep the poverty number at a high level. It was about measuring poverty rather than doing anything about it. The issue has been trivialised. We were a pioneer in poverty measurement, starting with Pitambar Pant’s exercise in 1962, and the methodology had been refined over the years. No one could deny that poverty had come down. There are multiple ways of measuring poverty and what is needed is to do something about it rather than split hairs. The states have a vested interest in inflating poverty figures — to derive as much Central transfer of funds as possible. It is desirable to have a universal social welfare programme but given the population size it is simply not possible fiscally to extend welfare schemes to all. There has to be some process to choose who needed to be taken care of. The best exercise is the automatic exclusion system, adopted in the socio-economic and caste census which provide for the exclusion criteria. It was a relatively easy methodology to exclude people and then cover the rest of the population within the social welfare net and ensure them better living standards. I wondered why government employees and taxpayers should be entitled to government’s social welfare programmes. The surveys being conducted by the Planning Commission use the best available methodology which is refined all the time. These surveys should provide for automatic exclusion of those not deserving to benefit from social welfare schemes
interview like government servants and tax payers. This is only one way of measuring poverty. You have to have a consistent methodology to see how poverty is going up or coming down. It is clear that poverty as measured by the way we have been measuring, it has come down. The controversy automatically starts when you start inclusion. In my view, administratively the simplest selection process is a process that is based on automatic exclusion. In exclusion you can identify. I think, it is relatively easier in our country and relatively less controversial to have a selection process that is based on automatic exclusion. Cleanliness, sanitation and hygiene have been a serious concern in our country, how your ministry is working on this to make the country achieve total sanitation? According to the new Census results, there is almost 60 per cent of India’s population still defecating in the open, it is a real blot on us as we can send satellites into space, but we can’t put toilets on the ground. In this country, women demand mobile phones, but, they are not demanding toilets. Sanitation is a complete disaster in our country. For this, we need to make the issue a national obsession otherwise it would remain as a scourge on the society. For us, it will take 10 years to make all gram panchayats, Nirmal Gram Panchayats. It took about a year to make village panchayat a Nirmal Gram Panchayat where there is no open air defecation. There are about 2.60 lakh gram panchayats in the country and as per the latest population Census data, only about 28,000 of them have achieved total sanitation. The data provided by state
“Sikkim has become the first Nirmal state achieving full sanitation coverage and Himachal Pradesh would soon get the distinction. From next year, the amount of assistance for construction of a toilet would be increased to `7,0007,500. Presently, the assistance from Central government for construction of a toilet is `2,200, while state governments provide another `1,000.”
governments show sanitation coverage is 68 per cent in the country, the Census puts the figure at only about 33 per cent. There is a huge difference between the data provided by the state governments and Census. But, I tend to believe Census numbers. We have to go a long way before we achieve total sanitation. Our aim is to make India an open air defecation free country in the next 10 years. Sikkim has become the first Nirmal state achieving full sanitation coverage and Himachal Pradesh would soon get this distinction. From next year, the amount of assistance for construction of a toilet would be increased to Rs 7,000-7,500. Presently, the assistance from Central government for construction of a toilet is Rs 2,200, while state governments provide another Rs 1,000. The Central government administers Total Sanitation Campaign (TSC) to facilitate states to ensure sanitation facilities in rural areas with the aim of eradicating the practice of open defecation and ensuring clean environment. TSC, at present, is being implemented in 607 rural districts not having sanitation facilities. Several non-government organisations are working hard in the rural development projects. Do you think that the government should promote more private participation in this direction to achieve its target? While a counted few of NGOs are doing commendable job in the country, there are some which are more involved in draining off the public funds. I request these so-called activists working through NGOs to stick to their social work, not don a Gandhi cap or enter the realm of politics. n July 2012
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round table
T
he need for a Second Green Revolution is being experienced more than ever before. The Economic Survey has raised an alarm over the dismal performance of the farm sector saying the Indian agriculture has not seen any big technological breakthrough since the 1960s. It says special attention is required to increase production of nutrition-rich crops like pulses, fruits and vegetables — which remained untouched in the first Green Revolution. The agriculture sector is at crossroads with rising demand for food items. The food safety net for each of India’s billion-plus citizens requires enhanced agriculture production and productivity. Raising concern over a marked drop in the yield and production of cereals, underpinned by abysmally low nutrient consumption per hectare,
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the Survey called for concerted and focused efforts to address the challenge of stagnating productivity levels. Increasing agriculture production and productivity is a necessary condition not only for ensuring national food security but also for sustaining the high levels of growth. According to advanced estimates released by the Central Statistical Organisation, or CSO, the governments official statistician, agricultural output growth is expected to decline to 2.5 per cent in FY12 from 7 per cent in FY11. Under all these circumstances, do we need to fasten the Second Green Revolution in the country in order to meet up the needs of surging population and the targeted GDP growth? R&M Team conducts a roundtable discussion in print with country’s top leaders and visionaries to assess the situation and what all needs to be done:
round table
S
ee, there is no second or third green revolution. Green Revolution implies on increase in production through the productivity pathway. There are two methods of increasing production. One is the area expansion. Because Green Revolution was criticised by environMP, (Notably known as an architect of the first green revolution in India) mentalists as harmful to the environment so I coined the term ‘evergreen revolution’ about thirty years ago saying that we must increase productivity in perpetuity without ecological harm and not in spurts. For factors can provide answers through integrated example, Punjab what is called the fatigue of the pest management, integrated nutrient supply, Green Revolutions due to soil and water problems. scientific water management, scientific soil So green revolution means increase in fertility management, the land care movement, production through the productivity pathway. the water care movement. So for everything there That is the only method we can is a solution. Now you must find follow because land is a shrinking a solution which is affordable, “It is always said that in our resource for agriculture. Therefore implementable and sustainable. country, percentages are the only possibility is the EverIn our country we say that the always misleading. See 25 monsoon and the market are the green Revolution pathway. Government policies are also percent of 300-400 million determinants of the farmer’s well not favourable for sustainable and 25 percent of the 1.2 being. Now we have the National agriculture. Science is the prime billion is very different. You Monsoon Mission and the data mover of change. The green should go to the farmers so that go on saying record-record they can prepare for overcoming revolution was science based and its foundation was science. New but the record is not keeping natural calamities like flood and up with the per-capita varieties of crops, new plant drought. architectures and new methods consumption” Storage is a national shame of feeding the plants were some due to the way we are storing our of the scientific methods which helped the green grains. I advocated for the national grid of grain revolution. storages which consists of fifty storages all across Similarly Science alone can solve these the country. If we have a decentralised network of problems which are sometimes created by science storages then during peak periods we don’t have and sometimes created by human folly. I have to rush here and there for transportation. North always said that whatever we see is the interaction Eastern states, Kerala, desert districts of Rajasthan between technology and public policy. Therefore can get benefitted if we use some ultramodern the new science which is based on the ecological storage technology. n
Prof. M S Swaminathan
July 2012
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round table
Dr. Manmohan Singh, Prime Minister
W
e all look back proudly to the green revolution, which helped us overcome food shortages and banish the specter of starvation, or living from ship to mouth. But, today we find that the regions of the country which witnessed the green revolution are suffering from problems of environmental degradation. In many other regions of the country, particularly in eastern India, yields continue to be much lower than “India currently spends what is attainable. about 0.6 per cent of We clearly need a second green its agricultural GDP on revolution that is more broadagricultural Research and based, more inclusive and more Development. This needs sustainable; we need to produce to be enhanced at least 2 more without depleting our natural to 3 times by 2020, as a resources any further, and we look substantial portion of our towards our agricultural scientists agricultural growth will for ushering this green revolution. come through technology India currently spends about and production process� 0.6 per cent of its agricultural GDP on agricultural Research and Development. This needs to be enhanced at least 2 to 3 times by 2020, since a substantial portion of our agricultural growth would come through the application of new technologies and new knowledge to production processes. Today there are more than 50 State Agriculture Universities and institutions and one Central Agricultural University imparting higher agricultural education. All these institutions need to provide the best of academic inputs along with hands-on training to the students. I also suggest that we re-examine the
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architecture of agricultural extension services so that our scientists, our administrators and the private entrepreneurs can together better help farmers to bridge the gap between yields that are possible and those which are actually achieved. I suggest further that the Krishi Vigyan Kendras which cover all the districts of our country, have a very important role to play in encouraging, what Jawaharlal Nehru used to call the growth of scientific temper for the management of India’s agricultural economy. Rainfed agriculture continues to play a very important role in our economy, contributing about 60 per cent of the cropped area and 45 per cent of the total agricultural produce. Rainfed areas contribute more than 80 per cent of the pulses and oilseeds grown as well as a substantial part of horticulture and animal husbandry produce. The second Green Revolution, that I have been talking about must therefore explicitly embrace dryland farming. Though many new technologies have been developed for our rainfed regions, yield gaps continue to be very large and not enough is being done to identify the most suitable farming systems and to ensure that they are effectively integrated with our watershed development projects. Our scientists must therefore work intensively to accurately assess the felt needs of our country, and develop new methods, new technologies and new knowledge for better soil and water management practices, improved cropping systems and better crop management. n
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round table
Prof. Y K Alagh, Chairman, IRMA
I
ndian agriculture is already increasingly demand driven. This will accelerate in the future. It has been argued; by me as well as others that agricultural diversification in India is basically driven by domestic demand. As compared to these estimates India’s most experienced demographer, Marie Bhat estimated that the growth rate of population would go down to 1.52 per cent annual in the decade 2001-11 to 1.25 per “Technology is going cent annual in the decade 2011-21. Population and Income growth to be the kingpin of will give us the base for demand. solutions. In the next Decadal growth of cereal demand two decades, Indian is 13 per cent. The decadal growth agriculture will meet figures for potatoes is 24 per cent, the requirements of 30 per cent for vegetables, 40 per food security and cent for milk, 200 per cent for eggs and 250 per cent for chicken. The rapidly diversify itself” low growth of cereal demand is compensated by very high demand growth of non-cereal based and noncrop based agricultural goods. There are however, two perspectives on the relative importance of grains in India’s agricultural demand projections. In the next two decades, Indian agriculture will meet the requirements of food security and rapidly diversify itself. It will function in a rural urban continuum, with rapid developments of markets and shifting of working populations from villages to linked small towns and also from crop production to value added activities.
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Technology is going to be the kingpin of solutions. We saw earlier that the high rate of capital formation in India’s agriculture of 21 per cent of agricultural GDP is not leading to a commensurate increase in agricultural growth. Groups pushing technology should be in the driver’s seats and that should be with performance markers. Since the land base has stopped growing, productivity growth will have to be much higher. The discussion of agro-climatic planning and policies’ highlights the importance of holistic approaches given the resource endowments of a region. The prospects for Indian agriculture are good. Demand will grow fast and if we create the correct incentive and organization systems the Indian farmer will not fail us as he has responded well in the past when our policies were supportive. Research systems will have to concentrate on a much larger cafeteria of crops and support to non-crop agriculture, including animal husbandry, fish and forests. The real dangers, apart from antiagricultural policies, are in running into real resource constraints. Again here the strategies for land and water management are known and agricultural research can fill in the gaps. Unfortunately, the Eleventh Plan is the first plan without a chapter on the Perspective of the Economy and we have to rely on the efforts of people concerned on India’s future outside the government like me. n
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demeanour
Stigma
Need T
versus
he National AIDS Control Organisation (NACO) is running Condom Social Marketing Programme (CSMP) in the country. However the rural mindset, social sensitivities, demographic diversities and traditional drawings somehow bring such kind of jolts on the way of its initiatives. People have hesitation in talking about condoms, they feel embarrassed to purchase it from the stores. Many people think, condom promotion may lead to premarital sex among the youth, which is against the Indian cultural values.
THE PERIPHERY As usual all males and particularly the females are hesitant to ask the third person for supply of condom because of prevailing socio-cultural conditions in the country. The lack of privacy in the stores
Though slowly and steadily condoms are getting acceptability in the mindsets of semi-urban Indian populace but in the rural areas, it is still to find relevance in terms of acceptance. NACO’s efforts to promote the usage may change the situation. By Mohd Mustaquim
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demeanour project for social marketing of condoms and and the social stigma associated with condom’s use contraceptives is being implemented through are the most significant barrier in its usage. various non governmental organisations (NGOs) People still want to have the free supply of for creating better access in underserved rural areas condoms and most of them do not want to be so as to generate demand for increased condom shown buying condoms in the stores due to the usage. However, due to the persistent backwardness socio-cultural conditions. and low education, the condom promotion in rural Many women in the country do not want their areas has not been an easy task. husbands to use condoms, as they are anxious that In accepting new things, there is a human this will inspire promiscuity, and there is also a psyche to be anxious, would the new things be general thought that the sexual satisfaction derived proved true on its claims or will with the use of condoms is much just be a spurious? Especially in lesser than without condoms. Education and socioThe low level of education the regions where the education economic status are the level is very low. They cannot be and socio-economic conditions most significant causes of persuaded easily. are the most significant causes of use of condoms in India. As Unprotected sex is the use of condoms in India. major cause by which AIDS is socio-economic and educational As socio-economic and spreading in the country. This levels increase, simultaneously educational level increases, makes it important to provide the use of condom increases. correct and consistent awareness In the Indian patriarch society simultaneously the use of among the masses. Along with male sex partners has always condom increases understanding how men and been dominating, the situation women may have differing gets changed when the female perceptions about condoms and its access. partner is educated. She may force to her partner Currently the condom use in India is very low and for using the condoms, make decisions, whether it is used mainly for family planning. she wants to get pregnancy or not and in some Moreover, States and Union Territories are way it encourages the use of condoms and other provided funds for Information Education and precautions. Communication (IEC) under National The use of condoms is found lower among the Rural Health Mission (NRHM) for couples where the education and socio-economic creating awareness on the use levels decrease. Even though, the community based area of contraceptives.
Tamil Nadu 2.3%
2.5
Punjab - 15.5% Haryana - 11.8% Uttar Pradesh 8.6%
Karnataka 1.7%
2.0
(in couples)
The least user states
Delhi - 22.9%
(in couples)
The most user states
Condom penetration in northern India is more than south
1.5
1.0
0.5
Andhra Pradesh 0.5%
0.0 05
10
15
20
25
Source:- Family Welfare Statistics 2009
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demeanour
PARADIGM SHIFT The overall impact of several years of communication on the topic has had an impact on the awareness levels about condoms in the context of their role in preventing unwanted pregnancies on one hand, and sexually transmitted infections, HIV/AIDS, on the other hand. Awareness about their preventative role, the establishment of certain brand identities, building facilitating environment such as freedom from embarrassment during purchase or hesitancy to talk about condoms, have all been attempted. Most of them have been successful, but the impact on behaviour adoption in the context of usage of condoms has not been commensurate with the efforts made for its promotion. Availability and accessibility to condoms, inequality in accessibility and availability of quality of health care facilities is the universal
NACO’s 2009 study estimated that there are 2.4 million HIV/ AIDS patients living in India. In the light of low literacy rate in the rural hinterlands, awareness and condom promotion can play a vital role phenomena in developing countries. For that reason, India has to overcome these challenges. UN in India concluded that many couples, even poor and illiterate rural residents wants to limit child birth, but are discouraged from doing so by the difficulty of obtaining contraceptives. The study also found that, the prevalence of condom fell by 0.2 per cent with every extra Kilometre distance from the Public Health Centres (PHC). If there was a PHC in every village this would increase the prevalence of the condom use from 4.4 to 5.9 per cent. Generally, the distance to access and high price of condoms put the poor people out of reach and this may be the reason for poor use of condoms. More the outlets of condoms more are the use. Accessibility is the big problem and much remains to be done so as to empower the poor populace living in the remote areas. When low cost condoms were introduced in
Spreading the word: NCC Cadets are being involved in NACO’s awareness campaign
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demeanour
Breaking the barrier: Several initiatives like the one shown above are carried out in rural areas to promote usage
Louisiana, USA, the average sale of condoms remained barely 2 per cent of the condom distributed for free. But in the Indian scenario, the poor people can afford spending on low cost condoms and the situation can change.
CHALLENGES AHEAD A Condom Mela was organised in Chandigarh in 2005 to increase awareness of condom use against STI and HIV. Condoms and their usage were openly discussed there. The results showed a substantial increase in the awareness was achieved after the completion of the mela. The community in general and particularly those who had visited the Condom Mela felt that similar melas should be organised at regular intervals. Apart from other efforts to increase male awareness, male participation in family planning and this kind of positive experience of holding melas could also be replicated in various parts of the country, especially in the rural areas. There is a need of hour to make
UN in India concluded that many couples, even poor and illiterate rural residents want to limit child birth, but are discouraged from doing so by the difficulty of obtaining condoms and contraceptives
ge. in a villa h camp A Healt
awareness programmes according to the ways of neuro-marketing, consumer’s behaviour needs to be read that what the way they can be persuaded. The rural consumers should be guided to understand the advantage of condoms such as prevention from sexually transmitted infections, HIV/AIDS, unwanted pregnancies and family planning is for there welfare. Its availability needs to be made easy. In the stores and public health centres, there is a need to maintain a privacy, reason being no one wants to be disclosed due to the social stigma that he or she is purchasing a condom. Prices need to be reviewed so that the poor people can afford it easily. There is also a need to implement policies that support women’s education, especially in rural areas. Behavior change and communication programmes (BCCP) especially among rural areas, low performing states, and couples from the lowest socio-economic regions need to be increased. n
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innovation
Creative bees
‘M
inds on the margins are not marginal minds’. With this philosophy, the National Innovation Foundation was formed by Prof. Anil K Gupta with the help of Department of Science & Technology (DST), Government of India. Since its formation in 2000, the foundation has been helping grassroot innovations and helping people from economically weaker sections to live a dignified life. As Prof. Gupta says that he looks for “odd balls” in the society those who are not at peace and want to try something new to quench their thirst for creativity. Through shodh yatra Prof. Gupta and his fellow yatris try to find out these people and their innovative creations.
By Madhvendra S Chauhan
Shodh yatra is a journey for the search of knowledge, creativity and innovations at grassroots. Through this yatra, his team tries to reach the remotest part of the country with a firm belief that ‘hardship and challenges of natural surroundings are the prime motivators of creativity and innovations’. Poverty doesn’t stop people in rural and semi-urban India from innovating cheaper alternatives for their expensive counterparts. This jugaad was looked at with a difference from the people working for NIF and Honey Bee-a non profit organisation- founded by Anil Gupta.
INNOVATION CRADLE India since time immemorial has remained a hub of creative fraternity and these art expressions can be
Through the timeless efforts of Prof. Anil Gupta and his brainchild the National Innovation Foundation- creative people from economically backward sections of rural India are proudly stepping forward for a better tomorrow 56
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innovation
a viable source of energy, he thought if he could develop a large wheel, which could run on wind power, and connect this wheel to the handle of the hand pump, he might pump out water continuously as the turbine rotates. Both of them then started building a windmill unit, using locally available materials such as bamboo, wood, strips of old tyres, pieces of iron, etc. The first prototype became functional in only four days with the help of a local carpenter. seen on the timeless pages of history. Many people of this country are carrying various art forms and vocations for generations and that’s how they have successfully saved the Indian traditional art forms. Inside Indian rural hinterlands, there are so many people who may barely be literate but their expertise in their area of work will give you bucketful of surprises. Like the brothers duo Mehtar Hussain and Mushtaq Hussain of Assam who have developed a windmill using bamboo and tin sheets. Mehtar and his brother while growing paddy in winter season needed irrigation from the well. Continuous pumping by hand involves a lot of effort and drudgery. At the same time, pumping out water by using diesel sets was a big drain on their resources. He pondered over the problem and looked around for possible options. Seeing wind as
BRINGING TO FORE Their effort was recognised by NIF and their windmill with the help in its design from Gujarat Grassroots Innovations Augmentation Network (GIAN) and NIF, later found applicability in the salt farming regions of Gujarat for pumping up underground brine. This initiative is
Two brothers from Assam developed a bamboo windmill for Rs 5000 and when the windmill was improved, it became of Rs 60,000 in Gujarat. Now these poor farmers get royalty of Rs 82,000 every year for it supposed to diffuse low cost windmills in salt farming areas of Gujarat. Anil Gupta shares more, “They get royalty of Rs 82,000 each year for it. This became the source of earning for them, who only few years ago didn’t have money for a pump
“I never dreamt of getting a prize that too from the President of India. I’m really thankful to NIF & SRISTI for guiding and financially supporting me. Entire credit for this achievement goes to these people” Gurmail Singh Dhonsi, Farmer, Sriganganagar, Rajasthan
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innovation
“Even In Most Difficult Conditi Anil K Gupta’s pursuit to find innovations in the rural hinterlands has brought both glory and money at the doorsteps of so many poor but creative people. His intellect and keen eye for detail has brought a revolutionary change in hundreds of lives in some of the remotest parts of the country and he doesn’t want any credit for it. In an freewheeling chat with Madhvendra S Chauhan, he shares more about NIF, Shodh Yatra and beyond...
Shodh yatra is now over one and half decade old and you along with other yatris have covered many thousand kilometers of rural India. When did you think of starting it and what prompted you to do that? The thought for shod yatra came into my mind almost 15 years ago when we were in a meeting and idea was that can’t we learn together and collectively? Sometimes life becomes too fast that small things get ignored and there is a need for slow-paced learning. I travel a lot and I realized if I continue like this then I’ll disconnected from the roots and unless your roots are deep, you can’t bring about any change in society. So we decided that we will walk together. In the first few years we used to have 25o km of walk for 10 days.
set and used to irrigate their four bighas of land through hand pump. This was made possible by the use of technology transfer and Intellectual Property Rights and it is possible to enrich people only by virtue of their knowledge.” The state contributes around 70 per cent in total salt production in India. Mehtar was awarded in the recently concluded sixth National Grassroots Innovation Awards. Another such innovation came from Gurmail Singh Dhonsi who invented a rapid compost maker and a tractor operated tree-pruner.
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Innovation SHOWC ASE Innovation
State
Bamboo Windmill
Assam
Tractor Mounted Rapid Compost Aerator & Tree Pruner
Rajasthan
High Yielding Onion
Haryana
Stalk Paddy Thresher
Assam
He received his Award from the President Pratibha Devisingh Patil. Sharing his journey, an elated Singh said, “I never dreamt of getting a prize that too from the President of India. I’m really thankful to NIF & SRISTI for guiding and
financially supporting me. Entire credit for this achievement goes to these people” He got a loan of rupees Five lacs under micro venture innovation fund from SIDBI which is a joint initiative by NIF and the bank. The founda-
innovation
ons, People Can Create Beauty” Covering 250 kms in the span of 10 days must be a tiring task. So, generally how many people are there in a group of yatris and what do you and fellow shodh yatris look for during the yatra? The numbers of shodh yatris sometimes go upto 100-120 and sometimes it is 40-45. When we go in some of the most difficult areas, like when we were in Bastar, there were only about 25-30 shodh yatris. Through shodh yatra, we try to honour them at their doorsteps. The whole point is that when someone has solved a problem, he deserves to be honoured. More than that we also try to understand why many times the creative people remain unrecognised in their own communities. Why do they need an outsider to come and recognise them? For this, they should be recognised by their own peers. We talk to people on the streets and when we come across something interesting we ask them ‘why do they do it?’ We look for crazy people, odd balls. When we look for them, we also try to understand whether people know about it and if they don’t know about it, then we also look for reasons which come in the way that obstructs it from reaching other people. What makes people who are aware of
tion also helped him showcase his innovation at different exhibitions in the country on its own expenditure. There were several surprises for the masses in the exhibition, which was organised for the very first time in the president house premises. These awards are biennial and have been presented by the present and former presidents of India except at one occasion.
TOUGH TRAVEL Rural India has remained out of much of the development cycle in
something either not to share or they will share and other people don’t want to learn it.
How do you involve rural people to participate and what has been the response of the masses you meet during the yatra? We go from village to village and live there. In summer we go to the places which are hot and in winter we go to the places which are cold. The idea is that we should suffer and when you suffer, you realise and connect to the poor’s problems. Communities have to be convinced about our ideas and objective. By doing that we are able to convince and generate respect for our purpose in their minds. We also organise bio-diversity competition and recipe competition. The recipe competition is for capturing and learning from culinary creativity. When there’s a cultural diversity, it is always accompanied by culinary diversity. And many times what you notice is that rich people eat poor food and poor people eat the rich food. This richness that is there is not because people spend lot of money, no, they can’t afford. In most of the cases, not all cases, they are able to find nutritional value in uncultivated plants and that’s very important for climate change when it takes place.
the country and As Anil Gupta puts in, “The winds of liberalisation have not touched much of rural India, especially as far as creating an environment for entrepreneurship is concerned. In the hinterland, the process of registering and getting the certificates and various other permissions to embark on a start-up is still so slow and full of corrupt intermediaries that many budding entrepreneurs run out of patience and give up.” He suggests some solutions but as he repeats, Indian political system has remained a major roadblock in
the way of rural and urban people. Corruption kills the very spirit for innovation but who cares? In one of his articles he throws light on the ground reality in the rural areas, “Rural areas also face an acute shortage of skilled workforce. The establishment of the National Skill Development Corporation, or NSDC, has done little to ameliorate the situation. For instance, in Gujarat more than 70 per cent of positions for faculty in government polytechnics have not been filled. This lackadaisical attitude is thwarting the development of appropriate skills
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innovation “The winds of liberalisation have not touched much of rural India, especially as far as creating an environment for entrepreneurship is concerned. In the hinterland, the process of registering and getting the certificates and various other permissions to embark on a start-up is still so slow and full of corrupt intermediaries that many budding entrepreneurs run out of patience and give up.” Then we also have idea competition for children to identify the creativity for children. We look for local institutions and common property institutions. We look at how people use water and other natural resources. We also look at aesthetics of survival. So even in most difficult conditions people can create beauty.
Property Rights. NIF has filed more than 500 patents. We believe that in one resource, in which poor people are rich is their knowledge. If you’ll take away the resource in which they are rich, what is left with them? So we create IPR but we also don’t want these rights to be used to stifle the livelihood of other people.
Was there any specific reason to name your non-profit organisation Honey Bee and how does this organisation contributes in the upliftment of the rural poor?
Intellectual Property Rights is a complex subject for rural people. So how do you tell them about the benefits of it and who does it for you?
Honey Bee does what we intellectuals don’t do. It cross-pollinates. When we take knowledge form one community or one person, we should give it to another community. We should cross-pollinate ideas. Flowers attract bees, they don’t avoid bees. So when we go to people and take their knowledge, they should not feel that they have been shock changed. We should acknowledge their knowledge, we should acknowledge their identity. They should not become anonymous. If any benefit is generated and value is added through their contribution; a reasonable share should go back to the people. In Honey Bee newsletter, whatever we publish, we publish with name and identity of people and nothing is published anonymous. Secondly, we also protect their Intellectual
It is true that most of the times farmers and artisans may not understand patents, but by now many people have started to understand patents because of the awareness that has been created. But still many people don’t hear about whether patents are granted or not. What their concern is how this knowledge can be useful to others. So many times we advise them to file patents for them. We have been taking help of various attorneys who provide pro-bono help and we file patents for them. We have licensed 68 technologies so far. If any industry has to invest, they may not invest without self interest. We file the patents for these rural people and for that we take their prior-informed consent. Nothing is done without prior-informed-
at the grassroot level. The foundation is doing an excellent job through filing patents for the rural people and so far around 600 patents have been filed. But the bigger challenge of getting financial support for any such gigantic task remains unsolved. The institution also passed through a rough patch that lasted for over a decade. For Prof. Gupta this was not an easy journey but his determination brought the fruit at last. On the
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budget front he explains, “Current situation is only slightly better but not very good. NIF is the institute of Department of Science & Technology and the budget is around rupees 8 crore. This award function and education takes us more than rupees 1 crore and everybody knows that it needs more money. Government has money for everything but not for this as yet. I don’t think that there is any other institution which has given more value for the money than it has.
Coffee maker
People may have lot of money but they may have no ideas. So if top of the pyramid people had all the wisdom, then the world would have been different, says Prof. Gupta
innovation consent of the people. Whatever knowledge we collect has to be taken to the permission of the people and when we file patents we take their authorisation.
How this initiative of filing patents for these rural ‘poor but innovative’ people have helped them in economic empowerment? What are other awards and recognitions they are receive for their work? For example there were two brothers form Assam, who developed a bamboo windmill for Rs 5000 and when the windmill was improved it became Rs 60,000 in Gujarat. We have already installed 40 of them. These poor farmers get royalty of Rs 82,000 every year for it. This became the source of earning for them, who only few years ago didn’t have money for a pump set and used to irrigate their four bighas of land through hand pump. This was made possible by the use of technology transfer and Intellectual Property Rights and it is possible to enrich people only by virtue of their knowledge. We have licensed their technology. We have micro venture innovation fund (MVIF) with the help of SIDBI. MVIF is a risk capital to
Nothing else would have given them more returns than what we have given but still it is a problem.” On the funding for the institute, he adds, “Government is indifferent on the issue of funding. The Immediate policy makers are very much supportive but Funds come from Planning Commission and Finance Ministry and unless Planning Commission takes interest and recognizes the importance of this (NIF), it wouldn’t make a
help innovations to go to the market. There are awards for creative people and are given by the president of India. NIF awards are biennial but Ignite awards for creative children are organised every year. So many people have contributed and helped us in this endeavour. People who are associated with us are from different walks of life like we have farmers, artisans, labourers, fishermen, tribals, designers and of course scientists. This is not one man or organization’s work and can’t be either. Honey Bee network in that sense is the collective effort of large number of people. It will continue even after me.
In one of your interviews you said that ‘minds on the margin are not marginal minds’. Can you please elaborate more on this? Many people who are on the margin of the society. They may be living in slums, in the small villages or may be repairing your car or motorcycle on the roadside. People are not at the bottom of innovation pyramid, they are not at the bottom of ethical pyramid. They are only at the bottom of economic pyramid. So, we should be very careful while using the term ‘at the bottom of the pyramid’. Though popular, this is not a good term and generally offending. It indicates what people are poor in, but it’s not just the economic resources which matters you know. People may have lot of money but they may have no ideas. So top of the pyramid people if they had all the wisdom, then the world would have been different.
difference.”
THE ROAD AHEAD On the issue of NIF & Honey Bee Network’s role in the development of rural innovations, he says, “The Honey Bee Network and the NIF, which identify and nurture grassroots innovation in the country, can play a very useful role by linking innovation, investment and enterprise through its large network of innovators.” Unfortunately, there is very
little angel funding and incubation support at the district level, and very little mentoring by the existing entrepreneurs or industry associations. But things can be changed by getting the relevant agencies more energised and setting them time-bound goals. “We need retired bureaucrats and managers to offer their experienced services for free or on some basis of deferred payment to budding entrepreneurs.” He adds further. n
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rural tourism
Although rural tourism is in its nascent stage in India, but it will grow as there is a huge market out there. Not only does rural tourism provide the villagers with a much needed additional source of income, visitors are able to interact with them and gain a rare insight into their way of life. Many Indian villages have now found a place on the international tourist map. By Praveen K Singh 62
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T
ourism growth potential can be harnessed as a strategy for rural development. The development of a strong platform around the concept of rural tourism is definitely useful for a country like India, where almost 74 per cent of the population resides in its 7 million villages. Across the world, the trends of industrialisation and development have had an urban centric approach. Rural tourism development in areas not traditionally considered tourism destinations per se occurs incrementally; either as a result of entrepreneurs developing businesses that attract visitors or as a result of visitors discovering the area and thereby generating a demand for tourism related activities to which, local entrepreneurs respond. The development of tourism in a rural area is not simply a matter of matching tourist demands with local products supply but a matter of evaluating local suitability and acceptability.
COUNTER URBANISATION Alongside, the stresses of urban lifestyles have led to a ‘counter urbanisation’ syndrome. This has led to growing interest in the rural areas. At the same time this trend of urbanisation has led to falling income levels, lesser job opportunities in the total areas leading to an urbanisation
syndrome in the rural areas. Rural Tourism is one of the few activities which can provide a solution to these problems. Besides, there are other factors which are shifting the trend towards rural tourism like increasing levels of awareness, growing interest in heritage and culture and improved accessibility, and environmental consciousness. In the developed countries, this has resulted in a new style of tourism of visiting village settings to experience and live a relaxed and healthy lifestyle. This concept has taken the shape of a formal kind of rural tourism. The Ministry of Tourism defines rural tourism as any form of tourism that showcases rural life, art, culture and heritage at rural locations, thereby benefiting the local community economically and socially as well as enabling interaction between the tourists and the locals for a more enriching tourism experience, can be termed as rural tourism. Rural tourism is essentially an activity which takes place in the countryside. It is multifaceted and may entail farm/agricultural tourism, cultural tourism, nature tourism, adventure tourism and eco-tourism. As against conventional tourism, rural tourism has certain typical characteristics: It is experience-oriented; the locations are sparsely populated; it is predominantly in natural environments; it meshes with seasonality and local events; and it is
Indian government has realised the value of rural tourism as it emphasises on tourism growth potential, which can be harnessed through rural development. The development of a strong platform around the concept of rural tourism is definitely useful for a country like India, where almost 70 per cent of the population resides in the villages. Under the rural tourism scheme, thrust is to promote village tourism
OFF THE BEATEN PATH
Looking to take the road less travelled in India? Travel Another India offer trips to lesser explored rural destinations. One of the most fascinating is the village of Hodka, near the edge of Gujarat’s Rann of Kutch white salt desert – located as far west in India as you can go! The village specializes in the making of handicrafts, and visitors can watch artisans in action. Accommodations are provided in mud huts (with attached western bathrooms) or tents at Hodka’s Village Resort, the Shaam-e-Sarhad (Evening gathering at the Border). It’s owned and operated by the Village Tourism Committee of the people of Hodka village, and is set in breathtaking natural surroundings. July 2012
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rural tourism
KILA RAIPUR RURAL OLYMPICS
GRASSROUTES IN MAHARASTRA
Grassroutes has tied up with a couple of villages in Maharastra to offer three unique experiences, depending on the time of year: The Story of Rice allows tourists to learn about and participate in the cultivation of rice and other village activities; Taare Zameen Par: Watch a Million Fireflies happens every June when the skies around hills of Western Ghats (Purushwadi village) light up with fire flies; A Trip to Warli Village is an excellent way to experience tribal India, with lessons about Warli art painting included.
One of India’s Quirkiest Festivals, the Rural Olympics takes place in February every year at Kila Raipur in the Punjab. The highlight of the festival is an action packed bullock cart race. There are plenty of other competitions and off-beat events, as well as cultural events such as bhangra dancing and folk singers in the evenings.
MoT’S SCHEME TO SUPPORT RURAL TOURISM Identification of villages: Each State/UT Govt. would be requested to furnish one proposal for promotion of Rural tourism. Based on the merits and after a joint inspection by the Deptt. Of Tourism and the State/UT Govt. if required ten proposals would be identified for implementation in the country.
ing, compound wall etc. •
Improvements to roads within the Panchayat limits. This shall not include major road which connects the village.
•
Illumination in the village.
•
Providing for improvement in solid waste management and sewerage management.
•
Construction of wayside amenities.
•
Procurement of equipments directly related to tourism, like Water
•
Sports, Adventure Sports, Eco-friendly modes of transport for moving within the tourism zone.
•
Refurbishment of the monuments.
•
Signages
Permission activities: The following works may be taken up under the Scheme –
•
Reception
•
Other work/activities directly related to tourism
•
•
Tourist accommodation
Preparation of detailed plan for implementation of the project: After short listing the proposals, the State/UT Govts. Would be requested to draw up a detailed plan of action. The thrust here would be to achieve convergence between the different schemes of the Govt. of India and the State Govts. It should be ensured that at least 50% of the project should be implemented through achieving convergence of different schemes. Assistance up to Rs 3.00 lakhs would be provided to the State Govt. for engaging an expert for preparing the project report. Assistance under the Scheme: A maximum of Rs.50 lakhs would be sanctioned under this scheme. The activities listed under the para-5 could be taken up.
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Improvement of the surroundings of the village. This would include activities like landscaping, development of parks, fenc-
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rural tourism “The government is playing a significant role in formulating national policies and incentives as well as in coordinating the efforts of the State and Union Territory Governments for promotion of rural tourism.” Rajesh Mishra
Former President FHRAI, CMD Mishra’s group of hotels & restaurants
based on the preservation of culture, heritage and traditions
GOVERNMENT’S INITIATIVE
EXPLORE RURAL INDIA
An initiative of the Indian government’s Tourism Ministry, directs travellers to villages all over the country. What’s really appealing is that you can search destinations by location, type of handicrafts produced, or other features such as herbal medicines, crab farming and deodar forests etc. There are dozens of options and circuits to choose from, or alternatively compile your own!
“As a part of the National Tourism Policy, the Ministry is developing and promoting rural tourism sites which have core competency in art, craft, culture, heritage, handloom etc. Special thrust should be imparted to rural tourism and tourism in small settlements, where sizable assets of our culture and natural wealth exist.” RH Khawaja
Secretary, Ministry of Tourism
The government of India in its National Tourism Policy has identified rural tourism as a focus area to generate employment and promote sustainable livelihoods. According to RH Khawaja, secretary MoT, “As a part of the National Tourism Policy, the Ministry of Tourism is developing and promoting rural tourism sites which have core competency in art, craft, culture, heritage, handloom, etc. Special thrust should be imparted to rural tourism and tourism in small settlements, where sizable assets of our culture and natural wealth exist.” The ministry of tourism, under this Scheme, gives thrust to promote village tourism as the primary tourism product to spread tourism and its socio-economic benefits to rural and its new geographic regions. Key geographic regions would be identified for development and promotion of rural tourism. The implementation is done through a convergence committee headed by the District Collector. Activities like improving the environment, hygiene, infrastructure etc. would be eligible for assistance. Apart from providing financial assistance the focus would be to tap the
resources available under different schemes of department of rural development, state governments and other concerned departments of the government of India.
AGRI-TOURISM Agriculture is the backbone of Indian economy. This sector’s contribution towards GDP is decreasing and farmers are finding it difficult to carry the agricultural activities without an additional income. Whereas tourism is termed as an instrument for employment generation, poverty alleviation and development. Agri-Tourism brings in together the declining and booming sector. It brings major primary sector agriculture closer to major service sector tourism expected to create win-win situation for both the sectors. Agri tourism activities include farm tours; tractor and bullock cart rides; grapes, mangoes, and other horticulture farms and by-product farms; birds and animal farms; There are lot of things the visitors or guests can enjoy in any agri tourism unit/farm. The future of rural tourism in our country is strong as new initiatives by tour operators, agents and state tourism departments are boosting it. Domestic as well international travellers are venturing new rural tourism spots across the country. n July 2012
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event
F
airs & estivals
India’s festival calendar is always crowded. With the diverse population living in the country, their styles of celeberating festivals are also distinct and it marks the Indian calendar with several festivals taking place in the rural India. R&M Team brings some of the major fairs and festivals which are celeberated with much fun and fervor across the country.
Minjar Fair
Onam Festival
July 29, 2012
August 10, 2012
Minjar Fair is a weeklong annual fare organised in the state of Himachal Pradesh. Major attractions of the fair are folk singing and dancing. The fair starts with the distribution of Minjar which is a silk tassel worn on front parts of the dress by men and women alike. Contacts: Himachal Pradesh Tourism Tel: +91-177-2652561, 2658302 E-mail: shimla@hptdc.in Website: http://hptdc.nic.in
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Onam is one of the greatest festivals of Kerala. The harvest festival of Onam corresponds with the Malayalam New Year, Chingam. Onam is a time for sports and festivities and in Kerala. People take to their boats and country crafts to celebrate. Contacts: Kerala Tourism Info Centre Tel: + 91-471-2321132, 1800-425-4747 Emil: info@keralatourism.org Website: http://www.keralatourism.org
Mela Ganesh Chauth (Chandausi Mela) Aug-Sep, 2012
Mela Ganesh Chauth, a month long fair, is organised in the month of August-September every year at Chandausi in western Uttar Pradesh. One can find the variety of products for shopping like clothes, capital goods, eating joints, entertainment, especially for children. Contacts: Uttar Pradesh Tourism Tel: +91-522-2308916/17, E-mail: upstdc@up-tourism.com, Website: http://www.up-tourism.com
event
Brahmotsavam
Pushkar Fair November 10, 2012
Pushkar Fair is perhaps the largest cattle fair in the world. This fair is held at Pushkar, 11 km from Ajmer in Rajasthan for twelve days every year. This cultural and trade-cum-religious fair is an attractive and lively spectacle with Rajasthani men and women in their colourful traditional attire. Contacts: RTDC Info Centre Tel: +91-145-2627426/1364, E-mail: trcajmer@rajasthantourism.gov.in Website: http://rajasthantourism.gov.in
Sep-Oct 2012
Tirumala Brahmotsavam is a Hindu festival celebrated annually at Tirumala Venkateswara Temple at Tirupati in Andhra Pradesh. The festival continues for nine days in the months of September and October. Contacts: Andhra Pradesh Tourism Tel: +91-40-23450444 Website: http://www.aptourism.in
Urs
October 10, 2012
Bateshwar Fair Oct-Nov, 2012
The Bateshwar fair is famous for its cattle, particularly horses and camels. A large number of domestic as well as International tourists come to visit and participate in the celebrations. Bateshwar is a significant religious and cultural place which is located at a distance of 70 km from Agra in Uttar Pradesh. The fair is organised in the months of October- November every year. Contacts: District Magistrate, Agra. Tel: +91 562 2461251, 2258400, Website: dmagr@nic.in
The Urs is held at Ajmer, Rajasthan every year at the shrine of Sufi Saint Khwaja Moinuddin Chisti, commemorating his symbolic union with the God. Thousands of people from across the globe come to visit it. Contacts: +91 9314747893, Website: http://www.ursajmersharif.com
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event
Hampi Festival
Mamallapuram Dance Festival
November 3-5, 2012
Hampi exists as one of the international tourist spots in the world heritage. The festival is a cultural extravaganza that has been celebrated since the times of the Vijayanagar reign. Hampi in Karnataka once the capital of the Vijayanagar Empire, comes alive during the lively festival of dance and music. Contacts: Karnatka Tourism, Tel: 080-22352828 Email: info@karnatakatourism.org Website: http://www.karnatakatourism.org
Dec 2012-Jan 2013
Mamallapuram Dance Festival promises all - live exhibitions of India’s wealth of moves, gestures, moods, rythym, devotion, joy-making, story-telling, acrobatics, lyrical and musical ecstasy that give expressions to its eight classical and a hundred of folk and tribal dances, against the unique heritage backdrop of Arjuna’s Penance. This dance festival is organised in the city of Mahabalipuram in Tamil Nadu. Contacts: Tamil Nadu Tourism Development Corporation Email: ttdc@vsnl.com
Island Tourism Festival January 5, 2013
Island Tourism Festival is a fortnight long festival organized by the Andaman & Nicobar Administration every year. It gives a festive look to the Islands. A ten-day long festival of dance, drama and music, exhibitions, displaying arts and crafts, flora and fauna and marine life, are parts of the event. Aqua sports and parasailing are added attractions. Contacts: Tourist Information Officer Tel: +91-3192-238473 E-mail: ipt@and.nic.in Website:http://tourism.andaman.nic.in
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Sonepur Mela
Vautha Fair
November 30, 2012
November, 2012
The famed cattle fair is held at Sonepur, in northern Bihar on the banks of the river Ganga. It is one of the Asia’s largest cattle fair. Sonepur situated on the confluence of the holy rivers Ganga and Gandak, has the reverence of a blessed ground and lasts for a fortnight. Sonepur Fair is the only fair of its kind where a large number of elephants are sold. Contacts: Director of Tourism, Bihar Tel : 0612-2234194
Vautha Fair is the largest animal fair held in Gujarat, which involves wholesome trading of camels, donkeys and other cattle. A large number of traders and buyers throng this fair from all around the country. Contacts: Gujrat Tourism Tel:+91-79-23222523 23222645 E-mail:msjoshi@gujarattourism.com
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service
NRHM was touted by the government as one of its flagship schemes which was supposed to provide affordable, accessible and quality health services to the rural poor. On the contrary, the scheme has been plagued by multiple scams and is now receiving flack from people as well as the Opposition. Mohd Mustaquim scrutinises the scheme.
Healthcare on the
blink
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service
T
he National Rural Health Mission was launched by the Prime Minister Manmohan Singh on April 2005 to improve rural health services with the objectives of minimising mortality rate of the rural poor from preventable diseases, pregnancy and child birth related difficulties. Having a tremendous mission which could have changed the face of rural health services the name of NRHM has been more associated with scams and political misleading. The allocation to NRHM has been increased to Rs. 20,000 crore per annum but the sum could not be utilised in proper manner. The multiple scams have defamed the mission. In a first instance if we hear anything about NRHM, the cases of corruption instantly come to the mind. The ambitious plan has appeared to be a massive failure in Uttar Pradesh. Owing rot and malpractices in the NRHM scheme, seven people lost their lives. Rajasthan has also seen a scam in tendering of 108 ambulances and same cases of corruption have come to the light in Maharashtra as well. A District Medical Health Officer (DMHO) was fixed for misappropriation of NRHM funds in the district of Adilabad in Andhra Pradesh.
NO PREVENTION, NO CURE India has registered considerable improvement in life expectancy, falling mortality due to Malaria, infant mortality, maternal mortality as well as the success of eradication of Polio and Cholera. Despite the fact, the rural health services are still poor, a high percentage of populace suffer and die from preventable disease, pregnancy, child birth related difficulties
Derailed mission: Rising levels of curruption have hit the NRHM mission severely
as well as malnutrition. Furthermore, the country’s health system is facing tremendous challenges. The rural public health care system in many regions is in an unsatisfactory condition leading to impoverishment of poor households due to dearer private sector health care. The challenges of quality health services in the remote rural areas have to be met with a sense of urgency. In the light of the extent of the problem, it is no longer enough to focus on conventional lines. There was an urgent need of a paradigm shift to make over the public health system into an accountable, accessible, affordable and quality health services to the poorest households in the remotest rural regions of the country. Focusing on reducing these problems in the public health sector in the rural areas the National Rural Health Mission was launched by the Prime Minister on 12th April 2005. The thrust of the Mission was on establishing a fully functional community owned, decentralized health care system, with inter-sectoral convergence at all July 2012
An ambitious schemes, which was supposed to provide quality health services to the rural poor has been plagued by multiple scams. Despite the fact, the union government has increased the funding for the scheme by Rs 20,000 Crore in 2012-13but has not done enough to address the issue of corruption
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service
Needs a cure: Health services in rural areas are in dire need of reforms
level to ensure simultaneous action on a wide range of determinates of health like water, sanitation, education, social and gender equality. The NRHM has special focus on 18 states, which have weak public health indicators and/or weak infrastructure. These states are Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Himachal Pradesh, Jharkhand, Jammu & Kashmir, Manipur, Mizoram, Meghalaya, Madhya Pradesh, Nagaland, Orissa, Rajasthan, Sikkim, Tripura, Uttaranchal and Uttar Pradesh.
BOTTOM-OF-BARREL
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The eleventh five year plan (2006-11) had set time bound measurable goals and some process objectives like reducing Maternal Mortality Rate (MMR) to 1 per 1000 live births, reducing Infant Mortality Rate (IMR) to 30 per 1000 live births, reducing Total Fertility Rate (TFR) to 2.1. Reducing malnutrition among children of age group of 0 to 3 to half of its present level, reducing anemia among women and girls by 50 percent and raising the sex ratio for age group of 0 to 6 to 935 by 2011-12 and 950 by 2016-17 were the classified objectives. However, the mission is still far behind July 2012
to achieve its objectives, in 2007-09, the MMR was at 2.12 per 1000 live births and 1.56 can be achieved by the end of this year. The MMR has slightly reduced from 62 to 55 per live birth against the set target of 30 per 1000 live births. Nineteen states and five union territories have reached population stabilisation goals of a TFR below 2.1 or a crude birth rate below 21 per 1000 population. Three states are on the way to achieving it - Haryana, Gujarat and Assam. According to 2011 Census, the child sex ratio has declined from 927 females against 1,000 males in 2001 to 914 in 2011, lowest since Independence.
NO COMMITMENT It is clearly a gigantic task to bring out major changes in outcomes by simultaneous action on wide range of determinates of health. Health is a state subject and the NRHM is an effort at building a partnership with states to ensure meaningful reforms with more resources. India is among those countries which are facing severe shortage of trained medical professionals. Especially in the rural areas, there is a persistent trend that the doctors are not willing to work there. It is a human psyche to look towards luxury and that can be met at urban areas. Time by time, there has been a rising demand to make one year of rural service compulsory for all MBBS doctors. Very recently the Karnataka state government has announced a ordinance for this. The basic idea of government is to provide health service is not wrong, the matter is, by forcing somebody to do something is of no use to either of the parties. If the government really wanted to do good for the rural people, they should provide incentive that doctors
service
can’t resist. By doing so, graduates passing out each year will eagerly join the rural service. Henceforth, there is a need of hour to change this mind set, legislations are not enough to solve the issue, Doctors are needed to give their services in rural areas on their own willing.
SORDID DETAILS Another big hurdle is in the way of NRHM is the persistent corruption. Diversion of funds, medicines absence of doctors in the medical centres, inadequate infrastructure and medical services only on the paper can be seen most parts of the nation. If one heards anything about the scheme, the cases of corruption come to the mind as its name has been associated with scams in various states. The ambitious plan has appeared to be a massive failure in Uttar Pradesh. Owing rot and malpractices in the NRHM scheme, seven people lost their lives. Now, the former health minister of Uttar Pradesh, Babu Singh Kushwaha is in the jail for the irregularities. Throughout the state, several raids have been conducted by the CBI.
According to the CAG’s report, the UP State Health Mission did not discharge its responsibilities adequately, resulting in Rs 1,768 Crore going unaccounted for. The total amount spent on NRHM by the state is Rs 8,657 Crore. According to the report, Rs, 1546 Crore for undertaking civil construction works and procurement of kits and vehicles during 2008-11, were released through an unauthorised agency, which was allegedly set up in violation of NRHM norms. Rajasthan has also gone through the same way in tendering of 108 ambulances and diversion of funds has also come to the light in Maharashtra and Andhra Pradesh. A District Medical Health Officer (DMHO) was fixed for misappropriation of NRHM funds in the district of Adilabad in the southern state.
NOT A SUCCESS The mission has a democratic and decentralised way in its implementation. Local units are active in the villages like Accredited Social Health Activist (ASHA),
The NRHM has special focus on 18 states, which have weak public health indicators or weak infrastructure. These states are Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Himachal Pradesh, Jharkhand, Jammu & Kashmir, Manipur, Mizoram, Meghalaya, Madhya Pradesh, Nagaland, Odisha, Rajasthan, Sikkim, Tripura, Uttaranchal and Uttar Pradesh
Auxiliary Nurse Midwife (ANM), Aanganwadi Workers (AWW) etc, they are coordinating with each of them. Panchayats are given more powers. However, the shortage of willing and trained medical professionals is a major issue. Even the doctors those who are posted in the rural areas and in the nucleus, do not make their presence at the health centres on regular basis. The total amount of Rs. 20, 822 Crore has been allocated to NRHM in the Union Budget 2012-13, an increase of 15 per cent from the previous fiscal. Furthermore, the other states are witnessing the similar illness in its implementation. In the tendering of 108 ambulances, the cases of corruption are making problems for the Ashok Gehlot government in Rajasthan. The political arena of Maharashtra is also facing the heat. A District Medical Health Officer (DMHO) was fixed for misappropriation of NRHM funds in the district of Adilabad in Andhra Pradesh. After the implementation of the scheme for seven years, this is the need of the hour to develop a mechanism, which can curb the corruption and restore the faith of public in the system. Punitive actions are needed to be taken against people those who are involved in misappropriation of NRHM funds. The vast disparity in the rural health services can only be eradicated through an honest step to be taken by the union government, the state governments, the bureaucracy and n the panchayatiraj institutions. July 2012
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‘We are looking for strategic partners, so that we can effectively monitor the scheme’ The newly-appointed mission director of NRHM scheme Dr. Rakesh Gupta in Haryana, has announced that in order to make the rural health scheme effective in the state, he is looking for strategic partnerships. In an exclusive chat with Praveen K Singh, he said, “We will have strategic partnerships, so that we get independent feedback while we actually run the program or do the various modules, and this will help us in making online corrections. Because ultimately after the end of one year or two years, if we realise that nothing has happened then that is of no use.” 74
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The National Rural Health Mission was initiated by the Government of India as a flagship healthcare programme to provide affordable, accessible and accountable healthcare services to the rural poor, however, it is known mostly for corruption. Does the mission fulfill its objectives? How is the state of Haryana performing? Actually, I have joined this position in this month only, just a couple of days back. The name of NRHM got its bad name because of Uttar Pradesh. As far as my knowledge goes and Haryana state is concerned, I don’t think that is an issue. Here, the issue is of performance, in the sense that Haryana has to do a lot to be closer to states like Kerala and Tamil Nadu. Haryana’s infant mortality rate (IMR) is quite high. The MMR is also stagnating for last several years. So, as far is the objective of NRHM is concerned, these two key indicators are
“This year also, we have involved chartered accountants at district level so that we have close supervision regarding the expenditure made in these facilities.”
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very important. We need to do a lot so that these outlays transform into processes and ultimately we able to bring these indicators down. So a lot needs to be done. We are not worried about the issues that are not taking place like what all are happening in Uttar Pradesh. Does your department have any mechanism to have a check on the implementation of rural health schemes in the state? If yes, what are the modules you apply and what would be your suggestion for the other states to follow? Let me first start with the performance of the NRHM in the state of Haryana as we are worried about not having Haryana amongst the first five states of the country as far as MMR and IMR are concerned. So recently we have devised a tool which we are calling as Supportive Supervision. We have already launched it for the performance of the sub-centre level. Here the idea is to ensure that all the inputs, processes, outputs, all the things which are required to be there or existing or be happening at the sub-centres. Those are actually happening. So, what we are asking is that the senior medical officers, medical officers, deputy civil surgeons, civil and surgeons of the respective districts will do inspections. They will sit with the staffs of sub-centres for the whole day and will ensure that all this is happening. In fact, we are also looking for independent feedbacks. We are sending people from the headquarters to do a similar kind of exercise. We
“The ground realities are very different from the way we perceive it at the Headquarters. When we got these checked up, we found that certain things are not happening. For example, we often talk about the quality anti-natal care, so we checked various sub-centres and facilities and found that the quality anti-natal check-up is not happening at many places.�
are also consulting the residents from PGI Rohtak. They are already in the field and already filling these forms. They are talking to ENMs whether the inputs are present at the sub-centres level or not. We have started with subcentres, but ultimately we’ll do it for primary health centres, community health centres and the district hospitals also. This is one thing. Another thing, we want to do is to monitor the outcome very closely, that is, the maternal deaths or the infant deaths or the still births that are happening in Haryana. For that we are devising a surveillance system for maternal deaths, infant deaths and still deaths. So ultimately we need to track where these are happening, why these are happening, and what could be done to prevent deaths or still births. As far as financial angle is concerned, last year, we had hired the services of senior and veteran accountants of a government institute. They are going to different districts, supporting the staff to follow the due procedures as far as instructions are concerned. This year also we have involved chartered accountants at district level so that we have close supervision regarding the expenditure made in these facilities. There is a set phenomenon in the country about lack of doctors in the public health centres belonging to rural areas, the doctors deployed at PHCs are often found absent and they run their own private clinics at some other place. What would you like to say on this and how would you tackle this? As we are using the module of Supportive Supervision System to ensure that the doctors are actually, July 2012
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service physically present in their respective CHCs and PHCs. We can assess the whole situation once we get feedback and then we’ll make a thorough evaluation. What are the other challenges in front of you in the implementation of the scheme in the state? I think accountability is one big issue. In the sense, that lot is happening the state of Haryana in the last 7 years or so. But, still we are not getting suggestions as MMR of the state is going down. Similarly, as IMR is concerned, we are at par with Bihar. In fact, we are the worst in comparison to India’s overall average. So these are something of big concern for us and we are trying to find out reasons for the dismal performance for the state. So, I would say that the ground realities are very different from the way we perceive at the Headquarter. We got these checked up and found that certain things are not happening. For
have found out that this particular component IMNCI has not really taken off. This is observed that even after imparting training and providing material, books and booklets these people are not doing what they are supposed to do. So, using supportive supervision and modules will ensure that all these are done. So that Haryana registers rapid decline in infant mortality rate and under-five mortality rate. With the current allotment of Rs. 20,822 Crore to the NRHM nationally, what is the share of Haryana government? How are you implementing the scheme? Are you engaging private companies also in the publicity campaign? I think, our module, which has been recently approved is around Rs. 400 Crore. So that is a small proportion as far as t h e total outlay of NRHM for the entire country is concerned. I would like to highlight
The name of NRHM got its bad name because of Uttar Pradesh. As far as my knowledge goes and Haryana state is concerned, I don’t think that is an issue. example, we often talk about the quality antinatal care, so we checked various sub-centres and facilities and found that the quality antinatal check-up is not happening at many places. For example, the haemoglobin meters are not being used by ONMs (Observatory Nurse Midwifes). Similarly, many times, blood pressure is not measured. Many of the ONMs are not using the urosticks, which is very necessary for checking the parameters of pregnant women. So these are important things, which are not happening. Similarly, in post natal care, a lot needs to be done. There is a module for the care of new natal and infants called Integrated Management of New Natal and Childhood Illness (IMNCI). So, I get a feeling that a lot of training has been given to various service providers, but, a lot needs to be done. At many places, we
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that we are looking for strategic partnerships. One, I already told you about PGI Rohtak, which is sending their residents to cross check what is exactly happening at the ground level. Second, we are trying to rope in PGI Chandigarh also. They will provide us with external monitors to ensure that what we need to do and intend to do is happening at the ground level. Similarly, we are going to talk to other research institutes with which we will collaborate so that we get independent feedback while we run the program or do the various modules, it will help us in doing online corrections. Because ultimately after the end of one year or two years, we realise nothing has happened. That is of no use. So we are trying to involve various institutes and looking for strategic partners, so that we get all the information which we require at the state headquarter level to monitors the scheme. n
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automobile
Riding the
Bumpy Roads From customised sales outlets to customised products, carmakers are using many marketing initiatives to woo the rural consumers. However, analysts feel that companies should explore the market with caution as it may not be a smooth ride. By Madhvendra S Chauhan
N
aresh, while driving his car from Jaipur to his village halts for a while to buy vegetables and paneer from the market. Taking a ride back home, we discuss about his work and other routines. Apart from his two taxis, which bring him good money daily, he maintains a separate car for his family. Sharing more he says, “There is an influx of tourists in Rajasthan due to its rich traditional heritage. I bought a car in 2004 to use it as a taxi and in the next two years I bought another.� Rural India has changed very rapidly in past two decades and the last decade has brought
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some significant changes in the consumer habits of the rural populace. Now they are striving for more and more urban products. This has given an opportunity to business fraternity to tap this huge market. The increased volumes in car sales suggest towards rural as a potential market for the carmakers.
WORLD OF OPPORTUNITIES For car makers rural is a new destination and almost every manufacturer, be it domestic or international, is keeping a very close eye on the growth and potential of this market. There are significant trends in the market which indicate towards a shift in the marketing
automobile
les Maruti’s sa l from rura
20%
16% 9% 3.5%
2010-11
2009-10
2008-09
2007-08
strategies of the carmakers and rural have become products, the company added 131 new sales outlets a topic of discussions behind the closed room to reach 933 outlets in 668 cities and increased its management meetings. The change in the strategy service reach to 1,395 cities with 2,946 outlets. and focus of car manufactures is due to increased The company’s network is now servicing about 1.2 purchasing power of the rural population. million vehicles every month. Carmakers like Maruti, TATA, In the last four years, rural sales Mahindra & Mahindra etc., are tasting have grown to contribute 20 per cent of the success of rural consumers for a long total domestic sales. About 40 per cent time now. For instance, in its annual report, of the company’s sales outlets are in the Maruti-Suzuki indicates towards an rural format, with a scaled down increasing rural share in its sales. In investment that enables viability on 2010-11, Maruti’s sales in the rural lower volumes. Rural India is area touched 20 per cent which was Maruti plans to penetrate in potentially very huge almost four per cent in 2007-08. the rural areas with more focused market and for us it Talking about the potential of marketing strategy to target 650,000 is of vital importance. rural markets, Shinzo Nakanishi, villages in India. The opportunities We are expanding our Managing Director & CEO to grow in regional centres are dealership and services of Maruti Suzuki told to R&M, immense. The company plans network to reach more “Rural India is potentially very to double its dealership network and more consumers huge market and for us it is of vital to 2,000 centres over the next Shinzo importance. We are expanding our four years, and the expansion will Nakanishi dealership and services network to happen more rapidly in rural areas. Managing Director & reach more and more consumers. ” Renault Nissan, which CEO Maruti Suzuki Apart from launching new manufactures small segment car
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automobile
We are keeping a very close eye on the development of this sector. Rural market is strategically very important for us and we plan to enter into this market in 2015 Hiroshi Nagaoka
Senior VP & Director, Renault Nissan
Rural India is a big but fragmented market. To be able to access this market you need to have the right products and the right strategy Mohit Arora
Executive Director JD Power Asia
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like Micra is devising its marketing plan to explore the rural potential. Hiroshi Nagaoka, Senior VP & Director of Renault Nissan said, “We are keeping a very close eye on the development of this sector. Rural market is strategically very important for us and we plan to enter into this market in 2015.” So are others. General Motors’ India unit, which sells the Beat and Spark in the small car segment, is focused on the rural market. All the 41 dealerships the company will add to the existing 259 outlets will be in rural areas. At present, 60 per cent of GM’s sales come from rural areas. While nationally the company has around four per cent market share, its sales proportion in regional centres is very good. Car maker Toyota Kirloskar Motor Pvt Ltd is very optimistic on India operations. The company expects a 40 per cent growth this year. It has set a target to sell 1.80 lakh units this year as against 1.36 lakh units in 2011. This year, the company plans to tap the potential, specifically for Etios, in the semi-urban and rural areas. Towards this, it would be expanding its dealership network from 173 to 220 during the year. It would set up workshops in small towns with big potential such as Tirupur, Asansol and a few locations in Punjab. July 2012
SECTOR PENETRATION Analysts say rural demand is looking up due to rising income levels and low penetration of passenger vehicles. “There has been a hike in the minimum support price (for produce). Moreover, most districts have seen above-average rainfall,” said Abdul Majeed, partner in PricewaterhouseCoopers in charge of the automobile practice. “Both central and state governments have been pushing a lot of housing schemes in these areas. The rising income levels have boosted confidence among consumers in rural areas.” Though India is the world’s secondfastest growing car market after China, passenger vehicle ownership here is among the lowest in the world, at 12 vehicles for every 1,000 people. While nearly a third of people living in metros own personal transport, the penetration in rural areas is half, at 15 per cent. This has led industry observers to believe a major proportion of growth would come from these areas. Tata Motors has also seen robust rural sales. For the Nano alone, Tata Motors has opened 30 dedicated sales outlets and it plans to reach 300 by the end of this fiscal—all in rural areas. Several factors are responsible for
automobile
Although, there has been significant growth of the market and it sows optimism for carmanufacturers but there are several factors that may hinder the growth and will be healthy to keep them in mind
positive sentiment in the rural economy, an analyst said. Ford India sells four models, with the Figo proving a game-changer for it last year. As much as 60 per cent of Figo sales come from semi-urban areas.
Kirloskar Motor, where one of every two dealerships added has been planned in regional centres. Toyota made its debut in the small car segment in 2011 with the Etios and the Liva.
EXPANSION DRIVE
Although, there has been significant growth of the market and it sows optimism for car-manufacturers but there are several factors that may hinder the growth and will be healthy to keep them in mind. The rural market is still very fragmented and at the nascent stage. Rural consumer spends his money very wisely after taking several issues in his perspective. Buying a car for the rural people is a big investment and for that they take fuel-efficiency, maintenance and sustainability of the product into consideration at the time of purchase. As Mohit Arora, Executive Director, JD Power Asia says, “Rural India is a big but fragmented market. To be able to access this market you need to have the right products and the right strategy.” So all the players who are operating in this market or are planning to enter into this should have customised products for the rural populace to get better sales figures and it will also connect the masses to the companies in a better way. n
Car makers now have sharply defined strategies for selling in rural and semi-urban locations. Hyundai, which has taken Maruti head-on with the Eon, asked its dealers to identify five probable semi-urban and rural sites for selling the 800CC car around their outlets. The company set up three kinds of touch points at these locations. At some places, it engaged salespersons with mobile vans to offer demonstrations and test drives. At other places, Hyundai either put up small sales branches which could display up to two cars or two-way sales and service workshops. Five years back, non-metro markets used to account for 18-19 per cent of Hyundai’s sales. It has now increased to 30 per cent. Half of Hyundai’s 340 dealers are located in non-metro areas. Over the next few years the company intends to grow its presence in such regions by 25 per cent annually. The expansion drive is more aggressive at Toyota
UPSHOT
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fair
P
ushkar Fair is internationally known for its cattle fair and other rural activities in Rajasthan. It’s an annual five days livestock and camel fair which is held in Pushkar town situated in the colourful state of Rajasthan, India. It is one of the largest camel safari and camps fair, which has gained major tourist attraction all over the world. This tourists’ place is self sufficient to complement the natural beauty. Pushkar Mela is not only famous for buying and selling of various livestock but competitions like matka phod, bridal competition, camel race and longest moustache has also gained tourist attention. The Pushkar Fair brings together over 200,000 people, 10,000 horses, and 40,000 camels for several days of livestock trading, colourful equine and camel pageantry, races and performances, alongside pilgrimage and religious festivals. The fair commences on the day of Prabodhini Ekadashi and continues till Kartik
Cultural Extravaganza
Pushkar Mela in Rajasthan is not only famous for buying and selling of various livestock but also for showcasing the cultural heritage of Rajasthan internationally through activities including competitions like matka phod, bridal competition, camel race and longest moustache. By Praveen K Singh
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fair Since Pushkar is one of the largest camels’ fair nearly 200,000 people, 40,000 camels and 18,000 camps gather here Poornima. The history of this fair dated since long back which is held in the honour of God Brahma. Many spirituals believe to take a ritual bath during these five days (within Pushkar Lake) so to get salvation. Many Sadhus and saints from all over India gather here and stay inside the caves for five days.
HISTORICAL RELEVANCE There are many stories related to the start of the Pushkar fair. While some says that it started in Satyug, others believe that it is Dauparyug. However, modern-day historians say that there are many mythical tales that surrounds the origin of this town as well as of this fair. Pushkar is one of the five dhams or sacred places that are highly revered by Hindus. It is believed that in a war, Lord Brahma had slained Vajra Nabh, the demon, with a lotus flower, whose petals drifted down to earth and were spread in three areas in and around Pushkar where lakes were created. Following the legends, it is said that the Pushkar Lake was bounded by 52 palaces and 500 temples. The history of Pushkar Festival mentions that all the 330 million Gods and Goddesses of Hindu religion come to Pushkar Lake on the day of Poornima (full moon night) and sanctify the pious. As a result, hundreds of thousands of pilgrims congregate for a holy bath at the Pushkar Lake to wash out their misdeeds and show respect to the sole Brahma Mandir on the globe. A dip in the lake on this day implies washing away the sins. The water of the lake is believed to have healing properties.
In recent years the fair has also included an exhibition cricket match between the local Pushkar club and a team of random foreign tourists. The Imperial Gazetteer of India, mentions an attendance of 100,000 pilgrims in early 1900s. Pushkar Lake and its precincts become very heavily populated during the annual Pushkar Fair or Pushkar mela, which has both a religious as well as an economic aspect. During the fair, a very large gathering of pilgrims takes a holy dip in the lake and the camel fair is an adjunct celebration. Pushkar
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fair Fair commences on Prabodhini Ekadashi, the 11th lunar day in the bright fortnight and ends on Kartik Poornima – the full Moon day in the month of Kartik (October– November), the latter being the most important day of the fair. This fair is held in the honour of god Brahma. A ritual bath on Kartik Poornima in the Pushkar Lake is considered to lead one to salvation. It is believed circling the three Pushkars on Kartik Poornima is highly meritorious. Sadhus, Hindu holy men, gather here and stay from the Ekadashi to full moon day in caves. The Pushkar fair is also Asia’s largest camel fair. The colourful and lively Camel Fair reportedly attracts 2 lakh people and 50,000 camels. In this fair held on the banks of the lake, camels are very colourfully decorated and paraded in the sand dunes on the southern part of the lake. Tribes from several neighbouring villages are seen in their traditional colourful costumes. The fair on Kartik Poornima, the day when Lord Brahma is believed to have concluded his Yagna establishing the lake. It is organized by the Rajasthan Tourism Development Corporation (RTDC), Pushkar Municipal Board and the Animal Husbandry Department of Rajasthan. The fair is a colourful cultural event also with folk dances, music, camel races and the cattle fair. The tug of war is a popular entertaining sport held during the fair. This event is held between the Rajasthanis and foreigners; locals invariably win the event.
PUTTING ON SHOW Thousands of people go to the banks of the Pushkar Lake where the fair takes place. Men buy and
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The history of Pushkar Festival mentions that all the 330 million Gods and Goddesses of Hindu religion come to Pushkar Lake on the day of Poornima (full moon night) and sanctify the pious sell their livestock, which includes camels, cows, sheep and goats. The women go to the stalls, full of bracelets, clothes, textiles and fabrics. A camel race starts off the festival, with music, songs and exhibitions to follow. Between these events, the most waited for is the test of how the camel is able to bring the items. In order to demonstrate, the men go up on the group of camels one after another. The Pushkar Lake is a sacred lake of the Hindus and is described as it as “Tirtha Raj” – the king of pilgrimage sites related to a waterbody and relate it to the mythology of the creator-god Lord Brahma,
whose most prominent temple stands in Pushkar. The Pushkar Lake finds mention on coins as early as the 4th century BC. The lake is surrounded by 52 bathing ghats (a series of steps leading to the lake), where pilgrims throng in large numbers to take a sacred bath. Over 500 temples are situated around the lake precincts. According to some local residents, tourism and deforestation in the surroundings have taken a heavy toll on the lake, adversely affecting its water quality, reducing the water levels and destroying the fish population. As part of conservation measures, the
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Experience has taught us that more and more people appreciate being able to travel with a purpose Alexander Souri Executive Director Relief Riders International
government is undertaking desilting, de-weeding, water treatment, and afforestation as well as mass awareness programme.
GLOBAL LINK Few westerners have never seen anything like the Pushkar Camel Fair - imagine the energy and excitement of 10,000 horses and 40,000 camels, brightly adorned and engaged in fiery competition and eclectic performances based on centuries old traditions, their owners vying for the perfect trade or the highest bid. Relief Riders International (RRI), a United Nation’s awardwinning humanitarian- based, adventure travel company, has been leading relief missions on horseback through breathtaking regions of India and Turkey since 2004. From November 13-28, 2012, in the spirit of the pilgrimage to Pushkar, Relief Riders International will lead a relief
mission to the Pushkar Fair. Alexander Souri, Executive Director, RRI said, “I could not think of a better way to arrive at the fair than having delivered much-needed humanitarian aid to the rural and tribal communities of the region”. He said that the riders will participate in RRI’s critically important aid programs: “Give the gift of sight and dental program, which provides free cataract surgeries and dental care; the give a goat program, providing free goats for milk and food, to people living below the poverty line; and delivering de-worming medication and educational supplies to children.” The Relief Ride will set off on horseback from the historic Khimsar Fort, on the edge of the great Thar Desert of Rajasthan. Unlike most deserts, the Thar hosts an incredible variety of wildlife,
including gazelles, blackbuck, and migratory birds. Riding on horses offers an intimate opportunity to experience this desert’s rich diversity and stunning landscapes. The Pushkar Relief Ride culminates with three nights of camping at the Pushkar Fair, giving riders the unique perspective of experiencing the world’s largest horse and camel fair on horseback. “Experience has taught us that more and more people appreciate being able to travel with a purpose,” Souri explained, “The Pushkar Ride combines an exhilarating horseback ride through one of the world’s most distinctive landscapes to the mystical village of Pushkar with the satisfaction of making an immediately noticeable and positive difference in peoples’ lives. Our three-day visit to the Pushkar Camel Fair will leave our riders with memories that will last a lifetime.” n July 2012
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housing
e m ho for ALL R
ominantly d re p s it h it India w ce, dispersed la u p o p l ra ru al s with margin e g la il v in r e ov of economic to low levels ces a unique fa t n e m p lo deve the task of challenge in sing dequate hou a g in s s re d d a h en K Sing for all. Prave e issues examines th
ural housing has attracted considerable attention in the recent years just as much as the rural markets in general have. In a policy sense, recognition of housing deficiencies was at the centre of several rural development programs. After all, rural India at present accommodates over 700 million people. There is of course heterogeneity within the ‘rural aralpanaeas’; some are fairly large and close to the urban centres. Some are small and remote. There are many in between the spectrum. Some villages are ‘rich’
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as the average farm holdings may be large and there is irrigation. Likewise the rural housing needs are also varied depending on the needs of cultivators: eg. space for storage of output and space for livestock. There is no question of rural housing demand not rising as the overall economic growth is taking place. It is also well recognised that improvement and expansion in the rural housing stock would lead to gains in labour productivity and positive health benefits. There are, however, constraints to faster improvements. There are indeed policy measures to relax some of the con-
housing straints such as subsidies to the poor or support to drinking water supply schemes; there are also market developments such as innovations that help bring down the cost of house construction. But there is also a central role that the village panchayats ought to play to make a positive difference to the quality of life in rural habitations. It is now fairly well recognised that demand for rural housing is constrained, among other factors, surprisingly by availability of land for building houses. The rising requirement of land for livelihood over time has meant that there is hardly any ‘common panchayat land’ available for non-agricultural usage, including for housing. Also most government land and forest land in the countryside has also been fairly extensively encroached. Besides the physical availability of land in rural areas for housing, the land problem has yet another dimension: the legal ownership rights to village land are often undefined and unclear. All this essentially means market for land for rural housing is also thin and ineffective. Paradoxically, there are indeed hot land markets in the villages close to the large cities and metros as the urban requirements for land have also increased in the recent years. But this is not the bulk of the rural areas. Housing in rural India is still largely for own use rather than for sale and resale. And one important reason for this again is associated among other things with the problem of transfer-
There is a profound change happening in the construction industry. More and more people at the lower end of the economic scale are building for themselves. Technology is no longer restricted only to the well-to-do
ring ownership rights. A distinctive aspect of rural housing, which is seldom recognised, is the lack of planning of rural habitations. They probably were planned at some point of time keeping in mind the security aspect besides their being less suitable for cultivation or having better drainage. But growth of population and other economic activities have led to deterioration of the quality of local environment.
The problem is particularly acute in low rainfall and unirrigated areas. The poor state of habitations is an economic problem. Barring some exceptional cases, with community initiatives as in the case of Ralegan Sidhi, or some of the ‘model villages’ there is lack of collective action to improve the overall rural habitat conditions. There are indeed many other civil society initiatives for building better rural houses. The Rural Build-
Indira Awaas Yojana
Further, for the current financial year 2011- 12, `10,000 Crore has been provided for Rural Housing, out of this `9,491.20 crore has been earmarked under IAY for release to the various districts of various States for construction of 27.27 lakh houses. Besides this, `500 crore has been kept for homestead scheme July 2012
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housing
GOVERNMENT’S SCHEME Housing is one of basic requirements for human survival. For a shelterless person, possession of a house brings about a profound social change in his existence, endowing him with an identity, thus integrating him with his immediate social milieu. The Ministry of Rural Development is implementing Indira Awaas Yojana (IAY) with a view to providing financial assistance to the rural poor living below poverty line for construction of pucca house. The details of the scheme along with its performance are given below: INDIRA AWAAS YOJANA The Government of India is implementing Indira Awaas Yojana (IAY) since the year 1985-86 to provide financial assistance for construction / upgradation of dwelling units to the below poverty line (BPL) rural households belonging to the scheduled castes, scheduled Tribes and freed bonded labourers categories. From the year 199394, the scope of the scheme was extended to cover non-Scheduled Castes and Scheduled Tribes rural BPL poor, subject to the condition that the benefits to non-SC/ST would not be more than 40 per cent of the total IAY allocation. The benefits of the Scheme have also been extended to the families of ex-servicemen of the armed and paramilitary forces killed in action, 3 per cent of the Houses are reserved for the rural Below Poverty Line physically and mentally challenged persons, From 2006-07 onward, funds and physical targets under IAY are also being earmarked for BPL minorities in each state. Under the scheme, financial resources are shared between the centre and the states on a 75 : 25 basis. Since, reduction of shelterlessness is the primary objective, 75 per cent weightage is given to housing shortage and 25 per cent to the poverty ratios prescribed by Planning Commission for state level allocation. For district level allocation, 75 per cent weightage is given again to housing shortage and 25 per cent to SC/ST population of the concerned districts. On the basis of allocations made and targets fixed, district Rural development Agency (DRDAs)/Zilla Parishada (ZPs) decide Panchayat-wise number of houses to be constructed under IAY and intimate the same to the concerned Gram Panchayat. Thereafter, the Gram Sabha selects the beneficiaries, restricting its number to the target allotted, from the list of eligible households from the Permanent IAY Waitlists. No further approval of the higher authority is required. ing Centres fashioned on the success of the initiatives in Kerala have not quite succeeded elsewhere. The rural infrastructure programs do bring in roads, electricity, drinking water and sanitation. But convergence of these various programs with housing and habitation plan is largely missing.
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The ceiling on construction assistance under the IAY has been enhanced w.e.f. 1.4.2008, Rs.25, 000/- to Rs.35,000/- per unit in the plain areas and from Rs.27,500/ - to Rs.38,500/- in hilly/difficult areas. For upgradation of kutcha house, the financial assistance has also been enhanced from Rs.12,500/- to Rs.15,000/- per unit. In addition, The Reserve Bank of India has been requested by the Ministry of Finance to include IAY houses under the Differential Rate of Interest (DRI) scheme for lending upto Rs.20,000 per unit at an interest rate of 4 per cent. Further, the dwelling units should invariably be allotted in the name of a female member of the beneficiary household. Alternatively, it can be allotted in the name of both husband and wife. Only in case there is no eligible female member in the family, the house can be allotted in the name of an eligible male member. The Sanitary latrine and smokeless chullah and proper drainage are required for each IAY house. Latrine could be constructed separate for the IAY house on the site of beneficiary. The construction of the houses is the sole responsibility of the beneficiary. Engagement of contractors is strictly prohibited. No specific type design has been stipulated for an IAY house. Choice of design, technology and materials for construction of an IAY house is the sole discretion of the beneficiaries. About 181.51 lakh houses have been constructed under IAY since inception of the Scheme with an expenditure of Rs.36900.41 Crore (upto 31/5/2008) PERFORMANCE DURING 2007-08 During 2007-08, the Central allocation for Rural Housing was Rs.40322.70 Crore. The target for construction / upgradation of IAY houses was 21.27 lakh. Against this target, 19.88 lakh houses were constructed/upgraded by incurring an amount of Rs.5458.01 Crore (including State share). Performance during 2008-09 The Central allocation for 2008-09 under the IAY is Rs.56.45.77 Crore for the target of constructing/upgrading 21.27 lakh IAY houses. Out of this, an amount of Rs.1694.48 crore has been released as part of first installment and 85879 houses have been constructed so far, (upto 31/5/2008).
The role that panchayats can play in this respect as units of self-government is indeed huge. But as with municipalities, this is largely an issue of capacity and institutional strengths. To re-iterate, what the rising demand for rural housing has meant is also that village panchayats may
have a chance to encourage the kind of housing plans that may improve quality of life for the millions of rural Indians. Financial resources for the panchayats are obviously constrained. Village panchayats have not been able to raise adequate revenues from property taxes and
housing Year-wise breakdown of rural housing shortage for the last 5 years
2005–06
1,551,923
2006-07
1,498,367
therefore not able to do much on improving the quality of habitation. The separation of land record and land revenue functions from the panchayats has meant that the panchayats have taken the state of the habitation as given and whatever improvements have occurred are mainly the outcome of the schemes planned from government bodies above. The prosperity of rural areas has meant better houses for only a few individuals and has not necessarily resulted in better habitation as a whole. The overall income of the panchayats from grants and own resources is still too meager to bring about any significant changes on their own. There are two directions in which the village panchayats can play a more active role in rural housing development. In one direction, there is a need to strengthen the governance role of panchayats: influencing construction of better houses and in a manner so that the village infrastruc-
2007-08
1,992,349
2008-09
2,134,061
ture is optimally utilised; the land and property records are improved. This in turn would catalyse the other services- particularly finance- that helps in turning some of the latent demand into effective demand. The second dimension in which the panchayats can play an important role is bringing greater convergence of many of the rural development programs for greater impact. There is a need to develop habitation plan for the villages that sets out the land use and construction guidelines. The latter activity would certainly require making new capacity available. The partnership with the NGOs, private sector and other civil society organisations will remain imperative as in many other rural development programs. The experience of involvement of the panchayats at different levels in facilitating the implementation of Indira Awas Yojana is important. The role of panchayats has been mainly limited to identifying the beneficiar-
2009-10
2,134,061
ies who receive the subsidy and then certifying completion of construction so that the final installment of the subsidy is released. In some cases the panchayats also help in identifying land for construction of these houses as many of the beneficiaries are landless. As land is not available in contiguous pieces or blocks, the houses are built wherever land is available. Obviously this is not most efficient in terms of providing infrastructure services. The panchayats also play a major role in facilitating the implementation of drinking water supply and sanitation programs (such as the accelerated rural water supply scheme and the total sanitation program) in the villages; they also facilitate building of rural roads as well as the execution of many other programs of rural development. The housing development perspectives actually provide greater convergence to many of these services as location of houses or new houses can be planned with reference to the various services. The village panchayats have yet another responsibility in modernising rural habitations. Their intimate knowledge of local needs, people and local conditions make them pre-eminently credible facilitators. The property tax on houses should become a major source of own revenue for the panchayats over time. As it is often said, it may be easier to collect the taxes if the tax payers see the benefits- in the form of better amenities. The PRIs should levy property taxes to improve the quality of habitations. n July 2012
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agri watch
Boosting agri products T
he revival of the Indian economy is facing a new risk of Unpredictable Trade Policies. The brunt of this uncertainty is being felt both nationally and internationally. Frequent amendments in Indian Trade policies have corroded the trust of foreign buyers while the Indian exporter is made to pay for delays. Be it pulses, sugar or cotton, exporters have no respite. India is the largest producer of pulses in the world, yet it is also the largest importer of pulses. There is a strong felt need to
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boost production of pulses to help India to become self sufficient by meeting domestic requirement and generating a surplus for export. CII, a prominent industry chamber, strongly believes that India can achieve a production revolution in pulses. An analysis by the Tata Strategic Management Group has also shown that by adopting best practices and increasing yield to the highest levels, India can increase production by 13 mt a year. Over the years, ban on export and re-export of pulses by the government adversely effected the
Experts believe that the country, at the moment, needs consistent and long term export policies to boost agri products. To achieve this, Indian trade policy needs to shift from gate keeping on export policies towards more consistent, reliable and transparent standards for export of agricultural commodities Indian pulses processing units. The Government of India declared a ban on exports of sugar, pulses and wheat on June 28, 2006 until the next harvest, due to domestic shortages. Export of pulses since then has been banned time and again. And now again recently the government has extended the prohibition on export of pulses for a year till March 2013, allowing only export of Kabuli Chana, Organic Pulses and lentils with a ceiling of 10,000 MTs per annum, and subject to certain conditions. This instability of policies have impacted country’s economy in a big way. Rakesh Bharti Mittal, Chairman, CII National Council on Agriculture and Vice Chairman and MD, Bharti Enterprises Ltd, says, “It is imperative today to develop a long term strategy for timely sourcing and distribution of pulses and to meet the demand and supply deficit of pulses in the country.�
agri watch
The major suppliers of pulses to India were Canada (1.2 million tonnes), Myanmar (4,80,000 tonnes), Australia (2,12,000 tonnes), the US (2,03,000 tonnes), Tanzania (1,44,000 tonnes) and Mozambique (89,000 tonnes)
The government has made a contingency plan to increase the area under rabi pulses cultivation and has allocated additional funding of over Rs 800 million for pulses farming under the ongoing National Food Security Mission Describing about the inconsistent trade policies, Ajay Shriram, Chairman, CII National Committee on Sugar and, Chairman and Senior Managing Director, DCM Shriram Consolidated Ltd. says, “India has always been in International sugar trading. International Sugar Prices are influenced by India’s trade decisions. The volume of exports and imports are based on surplus or shortfall anticipated between production and consumption. On the basis of assessments made by the Government they decide the export / import policy and the Industry has to abide by this policy.” “Due to inconsistent trade policy on sugar and late decision making, the industry has suf-
fered severely either by paying higher prices for imports or getting lower prices for its exports, eventually resulting in loss to the economy,” he describes. “Sugar industry needs a stable and proactive trade policy which will maintain domestic prices, stocks, reducing excessive fluctuations of sugar market and paying timely and remunerative sugarcane price to farmers,” emphasises Shriram. According to Gokul Patnaik, Chairman CII National Task force on Agri-marketing and Ex-Chairman, APEDA, (Agricultural and Processed Food Products Export Development Authority), Recent ban on export of various agricultural commodities such as cotton, pulses, sugar, casein have eroded the credibility of India as a dependable exporter. Foreign importers have been asking “Is India only a fair weather friend?” Indian exporters are being dubbed unreliable. It will be in national interest if Government of India takes a long term view and export-import is not regulated by “switch on switch off ” policy. Tariff control would be a more effective and acceptable way of dealing with temporary shortages rather than quantitative restrictions.” Consistent trade policies help create a reliable outlook. The returns would be positive for brand India internationally. To achieve this, Indian trade policy needs to shift from gate keeping on export policies towards more consistent, reliable and transparent standards for export of agricultural commodities. Only then will exporters face certainty and be able to build and leverage brand India internationally and remain competitive. n July 2012
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agri watch
Future of Indian Agriculture In times to come, Indian agriculture will meet the requirements of food security and rapidly diversify itself. It will function in a rural urban continuum, with rapid developments of markets and shifting of working populations from villages to linked small towns and also from crop production to value added activities By Yoginder K Alagh
I
ndian agriculture is already increasingly demand driven. This will accelerate in the future. It has been argued on various occasions that agricultural diversification in India is basically driven by domestic demand. The major impact of faster income growth was on domestic demand leading a process of demand diversification in a big way. Expansion and diversification of the consumption basket was basically driven by a higher growth performance since the 1980s.The agro-based items of consumption are important in the demand baskets of different income groups.
Demand Population and Income Growth will give us the base for demand. Decadal Growth of cereal demand is 13 per cent. On the other hand growth of demand of fruits and vegetables, eggs, chicken and milk is much higher. The decadal growth figures for potatoes is twenty four per cent, thirty per cent for vegetables, forty per cent for milk,
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in fact somewhat subjective and what is considered urban or rural varies considerably among countries.
Future Issues
two hundred per cent for eggs and two hundred and fifty per cent for chicken.
Markets and Strategies Recently UN studies have established through international comparisons a point we have made that India is urbanised more than what it says and its non-farm employment growth is globally comparable. The FAO bring out that in a global comparison and analysis. India is spotted in the transforming country category, with a clear historical trajectory of moving from being agricultural-based. The FAO note that according to popular statistics India is less urbanised, but they point out that: “On the other hand, what constitutes “rural� is
In the next two decades, Indian agriculture will meet the requirements of food security and rapidly diversify itself. It will function in a rural urban continuum, with rapid developments of markets and shifting of working populations from villages to linked small towns and also from crop production to value added activities. Employment growth will be high in these activities chasing a high rate of economic growth. All this will happen if the institutional structure gives the appropriate signals in term of technology and organisational support and the necessary economic support in terms of pricing and infrastructure support. Otherwise there will be rising food prices chasing few goods and immiserisation. (The writer is Chairman of Institute of Rural Management, Anand)