The National Agricultural policy (NAP) envisages that “private sector participation will be promoted through contract Farming and land leasing arrangements to allow accelerated technology transfer, capital inflow and assured market for crop production, especially of oil seeds, cotton, and horticultural crops”.

Agricultural production is dependent on different initiatives/systems viz., individual, cooperative, corporate and Contract Farming. Most of our farmers are practicing the individual farming system in which the individual farmer’s efforts to procure quality inputs, secure finance/ technology, market the produce are at stake. The farming community particularly small and marginal farmers require empathy from all those concerned in agricultural development – the Government, financial institutions, input suppliers, technocrats, marketing agents, extension workers etc.

In the rapidly changing economic scenario brought about by a liberalized economy, signing of WTO agreement and changing profile of farming activity. “CONTRACT FARMING” undertaken by large corporates has assumes great importance. These are large sized agriculture projects with cluster approach, implemented over a large geographical area. Under this system of farming, corporates/MNCs associated with agri business, having access to the latest crop production technology, enter into a contract/MOU with farmers for the cultivation of specific products and provide the necessary technology to the farmers for the cultivation of the crop. Thus they ensure the right quality of the end product required by the market. In turn, the farmers provide land and labour for the cultivation of the produce. The companies will have a set up of extension workers who constantly interact with the farmers and also train the farmers for the production of good quality produce. The companies normally make arrangements for the buyback of the produce at a predetermined price. The produce bought by them is either processed by them or sold to other processing units. In as much as marketing is more or less assured by the contract farming company and forward linkage for sale of the produce is already established, the uncertainty with which the farmer often faces in marketing agricultural produce, is eliminated. Further, the existing system of marketing through middlemen is also eliminated, thereby, assuring a better price and hassle free sale of produce for the farmer. This chain thus will also assure a better price and continuous supply of good quality produce to the buyer.

INPUTS SUPPLY

It has been reported that input dealers supply spurious seeds, adulterated fertilizers and expired plant protection chemicals in the market, which even led some farmers up to suicide (Andhra Pradesh). Quality, timeliness and adequacy in inputs supply are not up to the mark and for procuring quality inputs, the farmers have to spend time, money, energy etc. Still, at times all these efforts go waste and turn risky on account of bad input suppliers.

FINANCIAL ASSISTANCE

With regard to securing loan from banks, not all farmers are able to access to institutional credit, particularly those in rain fed areas, who are mostly dependent on money lenders even today. About 70% of these farmers are unable to get banks finance as per a survey report of ICRISAT, Hyderabad. Further, not all crops cultivated by the farmers are financed by institutions as the major crops like paddy wheat, sugarcane (tie-up arrangement with sugar mills) are only being targeted. India being blessed with different agro-climatic conditions, soil types and water resources, hundreds of crops cultivated but majority of them are out of the purview of institutional credit. Majority of our farmers (59%) are yet to receive Kisan Credit Cards from the Bank branches.

TECHNOLOGICAL SUPPORT

Technological support to farmers for achieving higher productivity in agriculture is one of the important factors to sustain FOOD SECURITY in the country. Though there are about 40 agricultural universities and about 30,000 agricultural scientists working on agricultural development, it is reported that only 30% of technologies generated have been adopted by the farmers, as the rest did not meet the “felt needs of them”.

EXTENSION SERVICES

Agricultural Extension services are very much essential to know the modern technologies, availability of improved input subsidy, post-harvest technologies etc. There are more than a lakh of extension workers in the country to support agriculture and agriculturists, but with the low literacy and the poor perceptual ability among the SFs & MFs, they are unable to take advantage of the position. It is also felt that these agricultural scientists and extension professionals could not serve as resource persons to poor families. A need has risen to protect the interest of farmers by exerting pressure on research and extension institutions to make technology appropriate.

MARKETING SUPPORT

Marketing is as important as farming. Agrl. Marketing in better shape stimulates economic development, production and consumption. It is known that the Government cannot fix minimum support price (MSP) for all agrl.commodities. It is said that the GOI fix MSP for 26 crops only. At, the same time it should also be realized that the farmers are undertaking distress sales/forced sales of their produce at reasonable price. Mostly, SFs/ MFs are not able to with stand the pressure to meet the bank commitments, consumption needs etc., by stocking. Sufficient storage facility is also not available in rural areas especially for SFs/ MFs.

CONTRACT FARMING

The foregoing aspects suggest that the farmers need support not only from Government sources, but also from private companies which are connected with agrl. and allied agrl. Activities, input supply, farm machinery manufacturing, trading of agrl. Commodities, agro processing industries etc. Govt is also encouraging private Extension service providers (PESPs) to supplement their efforts in agrl. Production. Contract farming companies/Agri Business Firms are the PESPs today and they may be traders or processors in agricultural commodities.

DEFINITION

The Food and Agriculture Organization (FAO) defined Contract Farming as PARTNERSHIP WITH GROWTH. It is an approach that can contribute to both increased income for farmers and higher profitability for sponsors (companies). It is

1. A viable alternate farming model, which provides assured and reliable inputs service to farmers and desired farm produce to the contracting firms.
2. An arrangement between the PRIMARY PRODUCERS AND THE AGRI BUSINESS FIRMS in order for the firm to procure certain pre-agreed, quantity and quality of a produce at a particular price and time from the primary producer.
3. An organizational arrangement that allows FIRMS to participate in and exert control over the production process without owning or operating the firms. Independent growers undertake the cultivation.
4. A system for the production and supply of agrl./horticultural produce under forward contracts between producers/suppliers and buyers. The essence of such an arrangement is the commitment of the producer/seller to provide an agricultural commodity of a certain type, at a time and a price, and in the quantity required by a known and committed buyer.
5. A direct consequence of globalization process wherein companies are forced to outsource raw materials and keep the production costs low in order to offer the product as a good buy to the consumer.

ORIGIN OF CONTRACT FARMING IN INDIA:

India has been practicing the Contract Farming System for quite a long time back through white Revolution – Amul Pattern in Gujarat, sugar cooperatives in Maharashtra and Seed Production in Tamilnadu. But, the present efforts taken by Agri Business Companies are much more improved and directly address the issues/ needs in agrl. Production and hence CF is progressing steadily in India. The Contract Farming Companies (CFC) have taken the lead point that Indian crop yields can be increased many fold with due support to the producers (the average Indian yields are far below potential level).

ADVANTAGES

. Small farmers participating in production of high value crops.
. Extensive areas with intensive cultivation – uniformity.
. Reduction in transaction cost.
. Effective & efficient monitoring of production operations, extension activities and credit delivery in a cluster.
. Maximizing profits to farmers.
. Minimizing risks in farming (risks in produce, price)
. Development of backward linkages by private companies
. Bank loan accessibility facilitated
. Scope for organic farming is bright.
. Emergence of agro – processing plants.
. Enabling the export of produce from small farmers through CFCs.
. Encouraging high-quality, better handling and sorting.
. Enabling producers and processors to achieve economies of scale.

PRESENT STATUS

1. GoI MINISTRY OF Agriculture attaches importance – model law support to small farmers.
2. APEDA guidelines to states on regularizing the relation between producers/processors of food materials – AEZ, set up to encourage local farmer.
3. The standing committee on Food Management & agricultural Exports has recommended for suitable amendment to the state Agricultural producer Marketing Regulation Act to promote development of marketing infrastructure in private and cooperative societies, direct marketing and contract farming.
4. Punjab has plants to diversify crop in 15 lacs acre in 4 years, paddy& wheat diversified with Maize, Barley, White Mustard, Basmati Rice & oil seeds.
5. Karnataka state – vegetables & fruits, grapes for resin, mangoes for pulp covered.
6. Tamilnadu – vegetables & fruits.

SINGLE WINDOW DELIVERY SYSTEM

Contract Farming Companies (CFCs) facilitate bank linkage with the farmers. CFCs are organizing supply of quality, timely and adequate inputs by giving franchise to dealers, arranging for bank credit, and dissemination of knowledge on technologies from the Agriculture University & own sources through the extension officers appointed for the purpose, arranging for buy-back of produce and for direct payment to the financing banks from the proceeds. This arrangement can be called as SINGLE WINDOW DELIVERY SYSTEM (through which all the needs of the farmers are met at one place facilitating quality production of higher income). Farmers are satisfied with the arrangement and more and more number of farmers are coming in under this new redefined approach. The companies are establishing extension units like Tata krishi Kendra by Tatas, Mahendrakrishivihar, by Mahendrasulabh Services Limited, e-Chaupal by ITC etc.

Today, the most productive global food marketing is “Organic product market”. With more than 10% growth rate, organic market, stand tall above the growth of other products. Organic agriculture is a holistic approach that offers equivalent gains in the interim and substantially improved grains in the long run, based upon a set of processes resulting in sustainable, eco-system, safe food, good nutrition, animal welfare and social justice. It aims to create ecologically, socially and economically sustainable system of food and fibre production. Organic farming in India is not new and is being followed from ancient time. It is a method of farming system which primarily aimed at cultivating the land and raising crops in such a way, as to keep the soil alive and in good health by use of organic wastes (crop, animal and farm waste, aquatic waste and other biological materials) along with beneficial microbes (Bio fertilizers) to release the nutrients to crops for increased sustainable production in an eco-friendly pollution free environment.

Organic farming can be defined as “ Organic farming is a system which avoids or largely excludes the use of synthetic inputs (such as fertilizers, pesticides, hormones, feed additives etc..) and to the maximum extent feasible relay upon crop rotations, crop residues, animal manures, off farm organic waste mineral grade rock additives and biological system of nutrient mobilization and plant protection”.

AIMS OF ORGANIC PRODUCTION:

1. Producing sufficient quantity of high quality food, fibre and other products.
2. To work compatibly with natural cycle and living systems in production process.
3. To maintain and increase long-term fertility and biological activity of soil.
4. To maintain and conserve genetic diversity.
5. To conserve water.
6. Using renewable resources in production and processing to avoid pollution & wastage.
7. Balancing crop production and animal husbandry.
8. Utilizing biodegradable, recyclable and recycled packaging material.
9. To provide quality of life to everyone.
10. To protect and learn from indigenous knowledge and traditional farming system.

NEED FOR ORGANIC FARMING:

With the increase in population, our compulsion would be not only to stabilize agricultural production but to increase it further in sustainable manner. The scientists have realized that the ‘green revolution’ with high input use has reached a plateau and is now sustained with diminishing return of falling dividends. Thus a natural balance needs to be maintained at all cost for existence of life and property. The obvious choice for that would be more relevant in the present era, when these agrochemicals which are produced from fossil fuel and are not renewable are diminishing in availability. It may cost heavily on our foreign exchange in future.

ORGANIC FARMING PRACTICES:

1. Taking care of farm and its surrounding environment to ensure biodiversity and sustainability of the system.
2. Conversion of land from conventional management to organic management by gradual replacement of chemical pesticides and fertilizers.
3. Crop production with the use of alternative sources of nutrients such as crop rotation, residue management, organic manures and biological inputs.
4. Use of certified seed.
5. Use of natural resources (mechanical, vegetative, water use, and green manuring.
6. Fertility management by conventional organic manures (FYM, compost, green, manuring.
7. Use of Bio fertilizers (Vermi compost).
8. Ecological pest management, physical and mechanical pest control (use of traps to control pest)
9. Use of neem and its products.
10. Maintenance of livestock in tandem with organic concept and make them an integral part of the entire system.

SALIENT FEATURES OF CROP PRODUCTION MANAGEMENT IN ORGANIC FARMING

1. Minimum tillage.
2. Adoption of integrated agricultural system.
3. Use of well decomposed organic system
4. Recycling of organic matter.
5. Proper crop rotation, inter cropping, mixed cropping and poly cropping.
6. Green manuring.
7. Use of bio-fertilizers.
8. Mulching of weeds.
9. Integrated pest management.
10. Judicious use of irrigation water.

WHY ORGANIC AGRICULTURE

1. To produce food and generate income for the families on sustainable basis.
2. Reduce pressure on cultivated land.
3. To free the farmers from the need for buying expensive inputs.
4. To ensure chemical free farming.
5. In India, most of the areas under rain fed cultivation are organic.
6. Organic farming has potential for high returns for new investments.

CATEGORY OF FARMS FOR ORGANIC FARMING

1. Category One – crops under rain fed farming system.
2. Category Two – mix of rain fed farming and partially irrigated lands (Horticulture)
3. Category three – areas having moderate to heavy use of chemicals with irrigation facility.
4. Category Four – Horticulture, plantation etc. carried as business activity.

ORGANIC FARMING SCENARIO IN THE COUNTRY.

Indian farmers are basically organic farmers before the advent of inorganic fertilizers and chemical pesticides. Over use of these synthetic inputs has come to the level of causing a concern to the environment and human health. Consequently it is felt that necessary, to advocate the use of the age old practices of organic farming not only to ensure contaminated food production but also to sustain agriculture by keeping the land in healthy condition. In the recent past, this has become a major concern, where the consumers started demanding the produce grown organically, by not using chemicals. To make organic farming successful, it is essential that eco-friendly technologies which can maintain or increase the agricultural productivity have to be developed and made available to farmers.

Organic food products especially the fruits and vegetables are slowly gaining momentum in the foreign markets like USA, Europe, and Japan and fetching premium prices. The areas under organic farming are slowly increasing due to the awareness of the impact of chemicals on the environment and human health

MAIN MARKETS FOR ORGANIC FARMING:

In EU, Germany is the leading country in turns of organic production, followed by Italy and France. The European Union and the United States are approximately at the same level of organic production. Somewhere between 4 and 6 billion Euros per year, with Japan at the third place. In respect of worldwide organic food consumption, Denmark and Austria lead the way with 37.3 and 34 euro per capita consumption per year. The worldwide market share of organic products is between 0.5 to 3% but it is hard to determine, as some countries do not certify their products.

ORGANIC AGRICULTURE IN INDIA:

More than 60% of the India’s arable land is under traditional agriculture, where synthetic inputs are not being used. Although the products grown under such systems have so far not been defined as organic products but by all means they are genuine organic products. In view of their wide availability there is an urgent need to ensure premium prices for the produce grown in these regions. Unfortunately these farmers are so involved in their struggle for survival that they have no time to figure out what is organic and what is not? These organic products are sold to middlemen and are marketed along with other chemically grown products. It is lack of awareness among consumers of our country that sometimes the chemically grown products which look healthy and attractive, inspite of having alarmingly high level of pesticide residue fetch higher prices than the poorly looking organic products. There is neither subsidy for organic cultivators nor incentives to practice organic cultivation in our country.

There are many areas in the country where crop residues, manures, legumes and neem are used to grow crops. They rely on crop rotation and inter cropping to do their job. These farmers practice their farming through organic inputs. Now, this is high time that attempts are made to classify these practices accordingly, if this is done, the poor farmers will get a premium price for their low yields.

CONSTRAINTS IN ORGANIC AGRICULTURE IN INDIA:

There are number of firms in India which grow vegetables, fruits, plantation crops, spices and tea organically and export to Netherlands and Germany. Usually, farmers associated with export big reporters do not have to worry about the sale of their products and their certification. Small and marginal farmers are the harrowed lot.

Marketing is the main problem for organic produce. The lack of awareness among people is the main hurdle in selling organic products. Further, the cost of the organic products is high which only the elite and foreigners can afford. The organic produce marketing is relatively small and on an average it is less than ½% of total Agricultural sector.

OPPORTUNITY TO PRIVATE SECTOR PARTICIPATION

1. It is a new business opportunity to this sector. 2. Attracts minimum taxes and gets maximum support. 3. Increasing demand of quality and convenience food by consumers. 4. Internationally growing demand for organic food.

GOVERNMENT SUPPORT

To promote farming and export of organic products, Department of commerce, Ministry of commerce and Industry, Government of India, New Delhi has already launched a National programme on organic production in May 2001. Under this programme the ministry has established a regulatory mechanism which covers fixing of standards for organic cultivation, accreditation of certification agencies and inspection etc. At present APEDA and five commodity boards are serving as accreditation agencies and four other certification agencies are approved.

The role of Government is:

a) Institute of Marketocology (IMO)
b) SKAL India
c) ECOCERT
d) SGS India pvt. Ltd.

NATIONAL STANDARDS ON ORGANIC FARMING:

Ministry of commerce under the “National programme for organic Production” has prescribed National standards for organic production. These standards are grouped under following six categories.

1. Conversion of lands for organic cultivation
2. Organic crop production
3. Animal Husbandry management
4. Food processing and handling of organic products.
5. Labelling
6. Storage and transport

BANKING INTERVENTIONS:

A new opportunity is thrown open to the Banking sector by organic farming, to provide credit facilities to the persons and organizations engaged in this activity. These opportunities for bankers can be listed broadly as under:

a) Providing credit to infrastructure deployment for organic farming like financing Vermi compost units , Financing producers for Bio fertilizers, Bio pesticides, Bio fungicides, Financing mechanical aids used in organic farming including farm equipment etc.
b) Financing farmers interested in organic farming for conversion of lands into organic cultivation and to produce crops organically (cereals, pulses, vegetables and fruits)
c) Financing under contract farming (both companies and farmers)
d) Financing units engaged in collection, processing, packaging and marketing of organic products.
e) Financing exporters of organic products.

The importance of diary in the Indian economy can be gauged from the fact that the milk is the single largest commodity whose estimated value is Rs.1,10,085 crores, way ahead of the contribution made by rice and wheat. Diary animals also contribute to hides/skin and dung valued at Rs.64 billion. Dairying plays a multi-purpose role in Indian rural systems – a cheap source of nutritious food, draught power, fertilizer and a secondary source of income for millions of rural families. Diary sector provides additional income and generates job opportunities for 110 million farmer families. Dairying is a secondary occupation for about 70 percent of India’s farming community. More than 70% of marginal farmers and landless labourers maintain dairy animals to supplement income. Women contribute 71% of the labour force to diary as compared with their share of 33% in crop farming. Now India stands number one in total milk production in the world.

Production of milk rose from 20.7 million tonnes during the year 1969-70 to an annual milk production of 112.54 million tonnes during 2009-10. India is a world leader in milk production since 1998-99. The domestic per capita availability of milk was around 250 grams per day in 2009-10, but it is still lower than the world average of 280.00 grams per day, according to FAOSTAT (Food and Agriculture Organisation statistical Database) 2009 data, the per capita milk consumption as recommended by ICMR is 282 grams per day – which reveals the scope to boost milk production in India.

National Diary Plan (NDP) with a proposed outlay of Rs.17,371 crore targets to achieve a annual milk production of 180 million tonnes, by 2021-22. Milk production is expected to grow at hour per cent with an annual incremental output of five million tonnes in the next 15 years. The plan also proposes to bring 65% of the surplus milk produced under organized sector for procurement. The plan focuses on better breeding and feeding of milch animals. The plan envisages breed improvement, setting up plants to supplement cattle feed and expanding milk processing infrastructure.

The Eleventh Five Year Planenvisages an overall growth of 6-7% per annum for the diary sector. As per an assessment made by the planning Commission, the domestic demand for milk by 2021- 22 is expected to be 172.20 million tonnes. About 80 percent of milk produced in the country is still handled in the unorganized sector and only the remaining 20 percent is equally shared by cooperatives and private diaries.

52% of the milk is produced by buffaloes, 45% by cows and only 3% of the milk is contributed by other species namely goat, sheep etc., India has the largest bovine population in the world. About 51% of Asia’s and more than 19% of the world’s. 57% of buffalo population of the world is in India. Operation flood has played a wonderful role in development of dairying in India. Now, we have more than 1,03,000 milk co-operative societies in India in 264 districts as per AMUL pattern.

Annual milk production in India has grown more than six times since independence. The dairy industry in India is currently estimated to be about 130 million tonnes and is expected to grow at 4-5% per annum. The projected value of the industry is about Rs. 5,00,000 crore (by 2011-12), which includes Rs.1,60,000 crore from liquid milk, Rs.45,000 crore from Ghee, Rs.50,000 crore from khoa/chhana/paneer, Rs.10,000 crore from milk powder, Rs.300 crore from table butter, Rs.8,000 crore from cheese/edible casein and the balance from other products currently, around 46% of the milk is consumed in the form of liquid milk, 47% as traditional dairy products, and 7% as western dairy products. The value-added versions ghee, butter, yogurt, paneer, cheese, along with a cornucopia of flavoured milks, ice creams, UHT processed milk and shredded and liquied cheese is making the sector an attractive for growth. The orgnaised sector processes about 13 MT and the halwais processes about 22 MT per annum. In the Organised sector, co-operatives have 60% share and processes 90% of the milk collected as liquid milk. Private dairies sell 20% share in the form of liquid milk (20%) and value-added products (80%). Considering the still nascent levels of processing at present, the diary sector holds vast potentiality.

The current size of diary and milk products is Rs.2,50,000 crore. This is expected to cross Rs.5,00,000 crore in revenues by 2011-12. Industry estimates indicate the packaged milk market valued at close to Rs.750 crore. The demand for value-added dairy products is in the increasing trend. Processed diary production rose 5% to 112.54 crore. In addition, strong demand for value – added dairy products and increasing private investment in diary processing facilities are expected to provide further impetus to the country’s milk production over the next few years. The demand for milk in India arises from three sources: The household sector, the un-organised sector (dudhwala or halwais) and the organised sector.

The following factors should be taken into consideration by a Banker before financing a diary unit.

1. POTENTIALITY OF THE AREA.

a) Whether dairy farming has been successful in the past in the area? – Any adverse features noticed in the past.
b) Whether the climate has been conducive for raising diary cattle? – Indian cattle can survive in usual temperatures.
c) Whether enough grazing area is available? – Minimum grazing area is required is, for 5 cattle one acre.
d) Whether ample water supply is available? – Minimum clean drinking water requirement of cattle is about 130 to 150 litres/day.

2. BREEDS OF MILCH CATTLE TO BE PRUCHASED

a) Buffaloes –
(i) Murrah, Nili, Jafrabadi,Mehsana, surti etc.,
(ii) Graded buffaloes

b) Cows –
(i) Indigenous animals e.g. sahiwal, Red sindhi, Gir, Tharparkar etc.
(ii) Exotic cows e.g., Holstein Friesian, Jersey, Brown swiss and Red Dane.

c) Crossbred cows – any variety of cross cred cows.
(i) Whether the breed to be purchased is suitable for the area?
(ii) What is the sex of the calf?
(iii) Prefarably animal in second lactation and within the first column of calving having a female calf at its heel should be purchased.

3. FEEDING OF THE CATTLE:

a) What is the arrangement of green fodder?
b) What is the arrangement for dry fodder and concentrate mixture?
c) Whether the animals are fed properly? Balanced ration to be worked out as per milk yield.
d) Following is the average feeding schedule for cows/ buffaloes.

Average lactation period(LP) is 270 days & dry period (DP) is 120 days in buffaloes and 300 days of lactation & 90-100 days of dry period in crossbred cows.

BREEDING FACILITIES & VETERINARY HEALTH CARE:

1. Whether A.I centre is located in the area? For bigger units it would be better to have its own A.I unit. What is the distance from the farm? Is it within 5 kms radius from the farm?
2. What technology is used at A.I centre? (liquid semen or frozen semen technology)
3. Whether veterinary dispensary is located in the area? What is the distance from the farm?
4. Whether qualified veterinarian’s services are available?
5. Whether there is provision for diagnosis of diseases at the dispensary or is there any diagnostic centre nearby the farm?
6. Whether the animals have been vaccinated against deadly diseases like Anthrax.,HeamorragicSepticemia, Rinderpest, Black Quarter & Foot & Mouth Disease.

5. IDENTIFICATION & AGE OF THE ANIMALS:

a) Whether ear tags are available.
b) What is the age of the animal?

6. IMPORTANT INDICATORS OF VARIOUS TYPES OF ANIMALS:

7. BENEFICIARY/BORROWER:

a) Whether the borrower has past experience in dairying?
b) Whether he had undergone training in dairying?
c) Whether he or the person employed by him is conversant with the technique of feeding detection of heat and common diseases.

8. MARKETING OF MILK:

a) What is the arrangement made for marketing of milk?

b) Whether it is a fixed tie-up arrangement with co-operative society working in that area?

c) In case of tie-up arrangement, whether the milk coop. society working in that area?

d) Whether the society is functioning on ANAND pattern?

e) Whether the society has opened a S.B or current account with the Bank?

f) Whether the terms and conditions of the tie-up arrangement have been explained to the beneficiary and the secretary of the co-operative society?

g) Whether the branch has obtained necessary authority letter from the beneficiary and the secretary of the co-operative society?

h) What is the price of milk and pricing system? Whether it is remunerative to the beneficiary?

9. INSURANCE:

Whether the animals and cattle sheds are insured? Insurance premium @ 4.5% of the cost in case of cross-bred cows & 4% on case of others. It may change from time to time.

CHECK LIST FOR FINANCING DIARY SCHEMES

1. Whether farmer/entrepreneur has aptitude for taking up Diary Farming?
2. Who has sponsored the application? DRDA or voluntary organization?
3. What is the subsidy available? If not, whether the applicant will bring sufficient margin money?
4. Whether the land is suitable for construction of cattle shed?
5. What is the design of shed? Whether adequate ventilation is available for animals?
6. Whether the floor area available for adequate for animals?
7. Ensure the floor is non-slippery and provision for drainage of dung and urine available.
8. What is the system of rearing animals (Face to Face or Tail to Tail sheds)?
9. What is the expected average milk yield of the animals?
10. Whether concentrate feed id available at reasonable rate?
11. Whether adequate quantity of green fodder is available (Normally@ 25kg/animal/day)?
12. Whether the farmer has enough land to supply green fodder?
13. Have the applicants been informed of

a) 1 Acre land for fodder cultivation for every 5 animals.
b) Both leguminous fodders and non-leguminous fodders are cultivated.
c) A milking machine is included under the scheme.
d) A chaff cutter (Fodder cutting machine) is included.
e) Breeding Bull (or) Liquid Nitrogen Container for artificial insemination.
f) Fencing around the farm.
g) Silage pit-for 20 animals unit: 5,610 cu.ft @ Rs.15/cu.ft
h) Manure pit @ 2.2 cu.m/animal
i) Open paddock area – simple 60’x60’ with fencing.
j) Equipments such as Castrater, Dehorner, Sickle, Wheel barrow, Milk pails, Buckets, Tie Chains, Milking machine, Bulk cooler, pasteurizer etc

Sheep and Goat were perhaps the first ruminants to be domesticated by men. They form a major chunk of our livestock species and contribute greatly to the agrarian economy, especially in the arid/semi-arid areas where crop and /or dairy farming are not very economical. Sheep and goats are mostly maintained on natural vegetation, common grazing lands, wastelands, fallow lands, stubble of cultivated crops and tree loppings. While sheep are usually reared for wool and meat (mutton), the goats are reared for milk, meat (chevon) and valuable textile fibers like Pashmina and Mohair. After slaughtering these animals, every part of its body is made use of in some way or the other. The skin, blood, intestines, hooves are even used. 90% of its body is considered edible while the remaining 10% goes for industrial uses. The population of sheep and goat in India, as per the 17th Livestock census for 2003, is 61.5 million and 124.4 million respectively.

Small body size, sustenance on low grade feed and fodder, efficient reproduction, adaptability to wide ranging conditions and profits generated even in nomadic grazing have enabled small/ marginal farmers/agricultural labourers to take up sheep & goat rearing for their livelihood.

BREEDS OF SHEEP:

Some of the important exotic breeds of sheep are:

For wool – Merino (Spain), Ramobouillet (France), polworth(England)
For Mutton – Suffolk, Dorset &Southdown (all from England)
For dual purposes – Corriedale (New Zealand), karrabul (Russia)
Merino, Ramobouillet, Suffolk, Corriedale and Karrabul breeds have been extensively used in India for cross – breeding purposes with a view to improve the wool and meat quality of our sheep.
The Indian breeds of sheep are distributed according to the agro-climatic zones of the country, viz.,
Temperature Himalayan region – Gurez, Bhakarwal & Gaddi.
Dry western region – Lohi, Bikaneri, Marwari, Kutchi, Nali, chokla, Magra, Malpura,Sonadi, patanwadi& Jaisalmeri
Southern region – Deccani, Nellore, Mandya, Bellary, Hassan, Mecheri, Vembur,Coimbatore, Madras Red, Ramnad & Tiruchi Black.
Avikalin, Avivastra, Avimaans and Bharat merino are a few of the important cross – bred sheep developed by central sheep & wool Research institute, Avikanagar (Rajasthan)

BREEDS OF GOATS:

The principal exotic dairy breeds of goats are toggenberg, Saanen, Alpine (all from Switzerland) and Nubian (North Africa). Another exotic breed known for its valuable textile fiber viz., Mohair, is Angora (Turkey).

According to the agro-climatic zones, the Indian breeds of goats are distributed as :

Arid & semi-arid region   –  Beetal, Barbari, Jamunapari, sirohi, Marwari, Jhakraana, Kutchi,Surti and Zalawadi.

Humid & Dry sub-humid    –  Bengal &Gunjam eastern region.

Humid & Dry sub-Humid    –  Osmanabadi, Sangamneri, Malabari & Kannaiadu Peninsular region

Temperate Himalayan region   –  Gaddi, Chegu & Changthangi

Of these Indian breeds, Jamunapari, Beetal, Jhakraana and Surti are supposed to be the best dairy type: Gaddi, Chegu and Changthangi the fiber type and the rest, meat type. The Himalayan breeds like Chegu and Changthangi are well known for yielding Pashmina. The diary type of goats yield about 170-200 litres of milk in 200 days.

HOUSING

Housing arrangements can be made depending on the type of rearing – Extensive, semi-intensive or intensive. In Extensive rearing, the animals are left out on the pasture grounds for grazing and browsing during day time and brought back into a shed for the night. In semi-intensive system, the animals are maintained in sheds for most of the day on concentrate feed & fodder and then left out in the open for grazing and browsing. While in the intensive system, the animals are completely stall-fed with concentrates and fodder.

Shed with long axis running east-west provides an appropriate environment with good ventilation. The rood of the sheds may be thatched or with asbestos sheets, preferably ‘A’ shaped to avoid direct solar radiation on the whole surface. The shed space requirement would be up to 15sq.ft for an adult animal and 5 sq.ft for lamds/kids. Essential equipments like waterers, chaff-cutters, castrator, Drenching bottles, Hoof-trimmer/scissors should also be made available with the shepherd.

FEEDING:

Sheep generally forages and green fodder available through pasture grazing, natural rangelands and mixed pastures, while goats like tree loppings and fodder. Anjan grass is found to yield good pasture under rainfed conditions. Legumes like cowpea, stylo, Dolichos lab, Atylosis and Clitoria are used for mixed pastures.

Intercropping of Dolichos lab with Bajra or maize is another ideal for mixed cropping. Tree fodder/loppings from Neem, Ardu,siris or DesiBabool serve as good feeding for goats.

Concentrate mixtures could be bought ready-made or mixed at the time of feeding the animals. The ingredients of the concentrate mixture comprises of 25-30% millets/wheat grains, 15-20% Deoiled cake, 20% Bran, VDalchuni. Mineral mixture and salt.

DISEASE CONTROL

Goats are realtively hardy and disease-resistant animals than sheep. Deworming and deticking of Sheep and Goats have to be carried out periodically to keep the flock free from internal and external parasites respectively. Besides, the flock has to be vaccinated in time against viral and bacterial diseases. Some of the important diseases affecting sheep are Entero – Toxaemia, Blue Tongue, sheep pox, Fascioliasis and Foot & mouth while some of the important diseases in goats are Foot & Mouth, HaemorrhagicSepticaemia, Goat pox, Fascioliasis and Contagious Ecthyma.

INDENTIFICAION & INSURANCE:

All he animals procured with Banks’ finance need to be identified and insured for the total cost. Sheds and equipments can also be insured. Sheep and Goats should be identified by either Tagging or Tattooing. The most prevalent method is by Ear Tagging with the use of metal or plastic tags. Some farmers even prefer to tie the tags around the animals’ neck. Tattooing is done on the ears as also in the inner skin health of the tail, bout is found to be operationally inconvenient

A premium of 4% of the cost of the animal is charged for insuring sheep and goats. Certificate of age and health from the veterinary doctor needs to be submitted at the time of insuring the animals.

BANKS FINANCE:

Finance can be extended to shepherds and farmers by way of Agri.Term loans for

1. Purchase of ewes & ram in a unit of 20+1 or 50+3 or 100+4/5. Ewe lambs should be procured from shepherds at the age of 4 to 6 months. Rams should be aged more than one year for proper breeding. If necessary, the feeding expenses on concentrates for a month can also be included in the capital cost. Cost of Sheds and relevant equipments for the unit need to be included, if the unit is to be taken up under semi-intensive/intensive system.

2. Purchase of goats & buck in a unit of 25+1 or 50+2 or 100+4. Permission needs to be obtained from forest department &Govt.agencies, if such units are taken up in areas adjoining reserve forests and Govt.lands. Additional finance to be made for shed, equipments, feed etc., if the unit is under stall-fed conditions.

3. Purchase of ram lambs in units of 100, 250 or 500 at the age of 3 months. In these cases, cost of concentrate feed for 10 or 12 months is also included.

4. Purchase of dairy type of goats in units of one single animal or 1+1. These are generally under Govt.sponsored schemes. Facilitates for breeding the goats should be ensured before taking up such units.

5. A repayment period of 4 to 5 years, without gestation period, can be allowed for the term loans, except for Ram lamb rearing projects which are generally sanctioned as cash credit limits.

6. Working capital requirements can also be considered for butchers /persons dealing with removal of animal skins, processing by flaying, curing, depilation & tanning and preserving them till disposal.

ECONOMICS (sheep unit of 20 ewes & a ram under extensive system)

1) Cost of 20 Deccani ewes @ Rs.1300 each and a ram @ Rs.2000 : Rs. 28000-00

2) Insurance of the animals @ 4% of the cost : Rs. 1120-00

3) Concentrate feed @ 250gms per animal per day for 3 months @ Rs.3-00 per kg : Rs. 1420-00

4) Miscellaneous expenses : Rs. 460-00

Total cost of the scheme : Rs. 31000-00

ASSUMPTIONS IN THE SCHEME

a) 80% of the female stock will breed every year.

b) Mortality rate of lambs will be 10%.

c) A sex ratio of 50:50 to be taken in respect of lambs.

d) The foundation stock will be sold after 3 years and replenished by the young stock by then. The female lambs will be retained in the flock while the ram lambs will be sold after an year of rearing. The ewes will be sold at Rs.800/- per animal and rams will be sold at Rs.2000/- per animal.

e) An annual income of Rs.1000/- from the flock will be realised through penning.

f) No expenses will be reckoned for flock grazing. Similarly, the income derived from coarse wool is not taken into account for the economics.
g) The number of animals sold each year will be as under:

I year : Nil : II year : 6 rams; III year : 7 rams; IV year : 20 ewes & 7 rams; V year : 7 ewes & 13 rams and VI year : 7 ewes & 8 rams. At the end of the 6th year, the flock of 20 ewes & a ram will be left with 7 female and 8 male lambs.

in Rs.)

IRR of the project works out to be 21%