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Odisha Farmer Income Enhancement Strategy

Consulting casebook

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Rushikesh Nikam
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14 views4 pages

Odisha Farmer Income Enhancement Strategy

Consulting casebook

Uploaded by

Rushikesh Nikam
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

THE CONSULTING CLUB, IIMB

IN COLLABORATION WITH

PRESENTS

GROUND ZERO
PROBLEM STATEMENT
Krushi Samriddhi - Case Study Statement

Introduction

Odisha, a state with over 9 million farmers, faces a significant challenge in uplifting the
livelihoods of its agricultural community. 90% of these farmers are marginal landholders,
owning less than 2 hectares of land, or are landless, relying on tenancy or agricultural labor
for their livelihood1. Despite the critical role agriculture plays in the state’s economy, Odisha
remains one of the most underperforming states in India in terms of farmers’ income. As per
the Situation Assessment Survey (SAS) of Agricultural Households in the rural areas of the
country conducted by the National Statistical Office (NSO), the Ministry of Statistics and
Programme Implementation (MoSPI) focused on the agricultural year July 2018- June 2019,
Odisha ranked 27th in terms of monthly farmers income2.

To address this persistent issue, the Government of Odisha introduced the Samruddhi
Agriculture Policy in 2020, aiming to shift from a production-centric approach—focused solely
on increasing food output—to an income-centric approach prioritizing farmer welfare and
income enhancement3. As part of this transformative strategy, the government has rolled out
a range of targeted interventions, including subsidies for agricultural inputs, direct income
transfer schemes, subsidized crop insurance crop loan programs, and increased access to
formal markets for procurement. Through the KONNECT program, Samagra is working with
the Department of Agriculture, Government of Odisha to improve farmers' income and bring
Odisha' s’ farmers’ income to the top 50 percentile in the country4.

The Challenge Around Agriculture Extension

Agricultural extension services bridge the information gap between farmers and the
knowledge they need to make informed decisions to enhance productivity and income. These
services involve the dissemination of information on topics such as high-yield seed varieties,
organic cultivation techniques, and government assistance programs. However, a significant
challenge exists in the form of information asymmetry, where farmers lack access to the latest
agricultural innovations and government support schemes. This lack of awareness often

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[Link]
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results in stagnation of productivity and income as farmers are unable to adopt progressive
practices or benefit from available programs5.

To address this gap, farmers must be equipped with accurate and actionable information
across three key areas:

1. Technical topics, such as improved seed varieties and modern cultivation methods.
2. Schematic topics, including eligibility criteria and processes for accessing government
schemes.
3. Emergency alerts, for managing pest outbreaks, adapting to low rainfall, or preparing
for cyclonic conditions.

Traditionally, these services are delivered by front-line government employees known as


extension workers, who interact directly with farmers to provide advice and resolve their
queries. However, the extension system in Odisha faces significant limitations. With an
average ratio of one extension worker for every 2,500 farmers—just one-third of the
recommended staffing levels—timeliness, standardization, and personalization of these
services are severely compromised. Additionally, socio-cultural barriers further restrict access
to extension services for women and social minorities, exacerbating inequalities in
agricultural knowledge dissemination. Addressing these challenges is critical for empowering
farmers and driving sustainable income growth in Odisha's agricultural sector, and Samagra
is working with the government to effectively implement extension services at scale.

Krushi Samruddhi Digital Extension System

To address the challenges surrounding agricultural extension, Samagra worked with the
Department of Agriculture to design and implement the Krushi Samruddhi Advisory System,
starting in 2021. This solution delivers weekly contextualized advisory calls to farmers through
an Interactive Voice Response System (IVRS). Leveraging Krushak Odisha- the state’s farmer
database—it delivers tailored advisory basis farming practices (eg: crops grown, animals
reared) and geographic location of farm plots.

Farmers receive advisory calls based on a pre-defined calendar that aligns with their practices,
crops, and regional conditions. All advisories are carefully vetted by senior scientists from the
Odisha University of Agriculture & Technology (OUAT), ensuring scientific accuracy and
relevance. The dissemination strategy is also dynamic, accounting for changing climatic
conditions. Additionally, farmers enrolled in government schemes receive scheme-specific
advisories to enhance the impact of on-ground interventions by the agriculture department.

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[Link]
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An impact evaluation conducted by Harvard Business School, based on a randomized control
trial between 2022 and 2024, revealed significant outcomes for farmers receiving these
advisories:

● A 27% reduction in crop loss due to pest infestations.


● An 8.2% increase in profit overall.
● A 105% increase in profits for farmers facing environmental disruptions

Problem Statement

Given the demonstrated impact of Krushi Samriddhi, the Government of Odisha intends to
increase investment in this intervention through 2 approaches

1. Increasing the adoption of IVRS advisory by personalising advisories till the farm plot
level.
2. Setting up a call centre that can be leveraged by farmers for resolving queries on all
topics related to agriculture.

Your role, as a governance consultant to the Department of Agriculture, Govt of Odisha is to


devise an implementable framework to enable farm-plot level personalization of advisories
and operationalize an effective call centre for query resolution.

Additional Resources

1. Krushi Samriddhi Advisory System | Impact Video: Link


2. Krushi Samruddhi Advisory System | Detailed Presentation: Link
3. Krushi Samriddhi Advisory System | Infographic: Link
4. Krushi Samriddhi Advisory System | Blog: Link

Notes

• Maximum of 3 content slides + 1 slide for exhibits/appendix is allowed (excluding the


title slide)
• All assumptions must be clearly stated and logically supported
• External parallels can be cited only if the assumptions and relation to the case are
clearly stated
• Citations and external references (if used) should be appropriately credited
• Creativity, practicality, and clarity in proposals will be judged favourably
• Ensure the strategy is ethically sound and feasible in the Indian context

Common questions

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The primary reasons for low farmers' income in Odisha include the prevalence of marginal and landless farmers, and a historical focus on production rather than income enhancement . The Samruddhi Agriculture Policy, introduced in 2020, aims to address these issues by shifting the focus from solely increasing food production to enhancing farmer income. It includes interventions such as subsidies for inputs, direct income transfers, crop insurance, and improved market access .

Measures include employing extension workers from similar socio-cultural backgrounds to build trust, launching targeted awareness programs, and leveraging technology to bridge communication gaps . Encouraging community participation and inclusive policies also helps reach women and minorities effectively .

The Krushi Samruddhi Advisory System significantly addresses information asymmetry by providing context-specific advisories through IVRS calls tailored to farming practices and geographic conditions . This personalized approach has led to a 27% reduction in crop loss due to pest infestations and an 8.2% increase in overall profits, demonstrating its effectiveness in improving information dissemination and resultant farmer outcomes .

The IVRS approach overcomes limitations of traditional methods by providing scalable, timely, and geographically adjusted advisories to farmers directly, thus bypassing the staffing constraints and socio-cultural barriers prevalent in the conventional extension system . This ensures more consistent and personalized knowledge transfer, enhancing farmer engagement and adoption of modern practices .

Enhancing effectiveness through personalization at the farm-plot level allows advisories to be more specifically tailored to individual farmer circumstances, increasing relevance and adoption . A dedicated call center can provide real-time assistance and query resolution, further supporting informed decision-making. Together, these enhancements can facilitate better agricultural practices and improved economic outcomes for farmers .

Socio-cultural barriers limit access to agricultural extension services for women and social minorities, which exacerbates inequalities in accessing crucial agricultural knowledge and support . This results in a lower adoption rate of innovative agricultural practices and government schemes, ultimately stagnating productivity and income growth for these groups .

Subsidies for agricultural inputs lower the cost barrier for adopting improved inputs, potentially increasing productivity by allowing more farmers to utilize high-quality seeds and fertilizers . This could lead to higher yields and better market competitiveness, ultimately enhancing farmers' income over time .

With only one extension worker for every 2,500 farmers—one-third of recommended levels—there are significant challenges in timely, standardized, and personalized delivery of extension services . This compromises service efficiency and effectiveness, hindering farmers' ability to access up-to-date agricultural knowledge and support systems necessary for improved productivity and income .

Challenges include ensuring the call center is adequately staffed with knowledgeable personnel, handling high volumes of queries effectively, and addressing language and cultural differences among farmers. Solutions may involve training programs for call center staff, deploying AI to manage call volumes, and creating a multilingual support environment to cater to diverse farming communities .

Ethical considerations include ensuring equitable access to services, particularly for marginalized groups, and maintaining transparency in the advisory system's operations . It is crucial to protect farmer data privacy and ensure that advisory content is unbiased and scientifically accurate, given its potential impact on livelihoods .

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