Market support and branding for input quality (Krishak Bandhu) (India)

Description

Market development and support through use of a brand name - Krishak Bandhu ('the farmer's friend') - to help ensure quality amongst manufacturers and suppliers of drip irrigation equipment.

Aims / objectives: Poor smallholder farmers are generally slow in adopting new technologies, especially when such decisions require relatively large initial investments which only yield returns over a long period of time. Even when subsidies are made available, the high transaction costs act as a hindrance. After more than three decades of promotion by government, and despite subsidies as high as 90%, conventional drip irrigation technology remains exclusively popular amongst 'gentlemen' (better-off) farmers in India. Since it was first introduced in the 1970s, the total area under drip irrigation expanded sluggishly from 1,500 ha in 1985 to 225,000 ha in 1998, which is tiny compared to an estimated national potential of 10.5 million hectares.

Methods: IDE, India (IDEI) is an NGO dedicated to troubleshooting such problems through a unique market development approach. IDEI promotes simple, affordable, appropriate and environmentally sound technologies for poor smallholder farmers through private marketing channels, under the brand name Krishak Bandhu. Donor resources are accessed by IDEI to stimulate markets by creating demand for such technologies and by ensuring an efficient supply chain for the equipment. The key to the IDEI approach lies in its adoption and application of commercial business principles as well as in its path of socio-economic development as a tool to sustainability of programmes. IDEI seeks to create a strong and continuing demand by motivating and nurturing an effective supply chain (including manufacturers, dealers and assemblers of micro irrigation equipment). In West Nimar, Madhya Pradesh (as in the whole of India) IDEI supports the marketing of cheap, good quality equipment for so-called 'Affordable Micro-Irrigation Technologies' (AMIT) such as pepsee (see associated technology). The promoted technology in this case is based on a farmer's innovation, which then was promoted and spread by IDEI.

Stages of implementation: IDEI has intervened in four major ways: (1) technically it has further developed the local innovation, pepsee, and come up with an improvement, aptly named 'Easy Drip'; (2) it has promoted small manufacturers of drip irrigation equipment and associated them with a brand name; (3) it has trained and supported private sector 'service providers' to assist farmers to install and adopt the systems; (4) on an ad hoc basis, IDEI commissions and supports studies on uptake and impact. Technologies promoted by IDEI provide returns on investment of at least 100% in one year which is crucial in explaining the success of pepsee. Within five years the projects supported by IDEI should become self-sustaining.

Location

Location: West Nimar, Madhya Pradesh, India

Geo-reference of selected sites
  • 75.602, 21.776

Initiation date: n.a.

Year of termination: n.a.

Type of Approach

Approach aims and enabling environment

Main aims / objectives of the approach
To bring affordable and appropriate water saving technologies to the rural poor through creating effective supply chains and developing markets, under a brand name associated with reliability.

The SLM Approach addressed the following problems: An underlying problem of increasing growing groundwater scarcity combined with the high investment costs of conventional drip irrigation equipment. On top of this is the reluctance of smallholder farmers to take government subsidies because of the high transaction costs (not easy to access; long delays and the reluctance to adopt new technologies). Local and cheap technological options are available, but quality and marketing channels are not assured.
Conditions enabling the implementation of the Technology/ ies applied under the Approach
Conditions hindering the implementation of the Technology/ ies applied under the Approach
  • Social/ cultural/ religious norms and values: Poor consumers are averse to risk and prefer to emulate the success of early-adopters. Hence, there's often a lag period between the introduction of the technology and its poverty impact. Treatment through the SLM Approach: Every project should become self-sustaining within five years. IDEI therefore establishes the supply chain for manufacturing,IDEI therefore establishes the supply chain for manufacturing,IDEI therefore establishes the supply chain for manufacturing,distri
  • Availability/ access to financial resources and services: Private business decisions are based on profit margins and volumes and the often fragmented and cash-starved customers do not constitute an attractive market on their own. Treatment through the SLM Approach: IDEI develops and nurtures the market for low-cost smallholder friendly technologies; thereby providing incentives to private businesses by encouraging growth in the size of the market.
  • Other: economic: Poor consumers cannot make large investments and may even be willing to pay a higher per unit price as long as the one-time investment is lowered. Treatment through the SLM Approach: IDEI identifies and develops appropriate technologies that have high poverty-alleviation potential, are produced locally; are environment friendly; and provide return on investment of at least 100% in one year.

Participation and roles of stakeholders involved

Stakeholders involved in the Approach and their roles
What stakeholders / implementing bodies were involved in the Approach? Specify stakeholders Describe roles of stakeholders
local land users/ local communities Smallholder farmers Traditionally, irrigation investments in particular, and farming in general, has been male-dominated. However, recent studies indicate that women play a critical role in the decision-making process, as these investments often compete with other household requirements.
SLM specialists/ agricultural advisers
national government (planners, decision-makers)
international organization
Involvement of local land users/ local communities in the different phases of the Approach
none
passive
external support
interactive
self-mobilization
initiation/ motivation
x
planning
x
IDEI carrying out awareness creation etc
implementation
x
monitoring/ evaluation
x
market surveys, studies, assessments initiated and carried out by IDEI
Research
x
planned and carried out by IDEI
Flow chart

left: Supply channels of AMIT (Affordable Micro-Irrigation Technologies) systems and the role of IDEI right: Key elements of the AMIT marketing strategy

Decision-making on the selection of SLM Technology

Decisions were taken by

  • land users alone (self-initiative)
  • mainly land users, supported by SLM specialists
  • all relevant actors, as part of a participatory approach
  • mainly SLM specialists, following consultation with land users
  • SLM specialists alone
  • politicians/ leaders

Decisions were made based on

  • evaluation of well-documented SLM knowledge (evidence-based decision-making)
  • research findings
  • personal experience and opinions (undocumented)

Technical support, capacity building, and knowledge management

The following activities or services have been part of the approach
Capacity building/ training
Training was provided to the following stakeholders
  • land users
  • field staff/ advisers
Form of training
  • on-the-job
  • farmer-to-farmer
  • demonstration areas
  • public meetings
  • courses
Subjects covered

Training and extension are combined: while there are no dedicated training courses, through the network of service providers (who have been trained by IDEI), know-how on drip irrigation is spread among adopter and potential adopter farmers. Brochures and pamphlets (several in the local language) are circulated and there is an informative website.

Institution strengthening
Institutions have been strengthened / established
  • no
  • yes, a little
  • yes, moderately
  • yes, greatly
at the following level
  • local
  • regional
  • national
Describe institution, roles and responsibilities, members, etc.
Type of support
  • financial
  • capacity building/ training
  • equipment
  • see Annex A3
Further details
Monitoring and evaluation
bio-physical aspects were regular monitored through measurements; indicators: improvement in water-use efficiency technical aspects were regular monitored through measurements; indicators: appropriateness of the technology to different crops and locations; also trying out technologies with new crops socio-cultural aspects were regular monitored through observations; indicators: impact on women and on the poor economic / production aspects were regular monitored through measurements; indicators: returns vis-à-vis investments area treated aspects were regular monitored through measurements; indicators: total scale of adoption; IDEI's estimates suggest that their technologies have so far reached 30'000 families There were None changes in the Approach as a result of monitoring and evaluation: IDEI carries out a number of studies to investigate the impact of their technologies and the scale and dynamics of adoption. The results of these studies feed into their strategic and operational plans. For example, IDEI was the first to introduce drips in mulberry cultivation in Kolar. That became a huge success story.
Research
Research treated the following topics
  • sociology
  • economics / marketing
  • ecology
  • technology

Apart from research carried out by scientists (published in journals etc) IDEI has its own series of research reports which present the results of various studies on promotion and impact of low cost water saving technologies conducted (see references).

Financing and external material support

Annual budget in USD for the SLM component
  • < 2,000
  • 2,000-10,000
  • 10,000-100,000
  • 100,000-1,000,000
  • > 1,000,000
Precise annual budget: n.a.
Approach costs were met by the following donors: international non-government (Donor agencies): 100.0%
The following services or incentives have been provided to land users
  • Financial/ material support provided to land users
  • Subsidies for specific inputs
  • Credit
  • Other incentives or instruments

Impact analysis and concluding statements

Impacts of the Approach
No
Yes, little
Yes, moderately
Yes, greatly
Did the Approach help land users to implement and maintain SLM Technologies?

The widespread adoption of the pepsee and Easy Drip irrigation infrastructure has greatly improved water use efficiency

x
Main motivation of land users to implement SLM
Sustainability of Approach activities
Can the land users sustain what hat been implemented through the Approach (without external support)?

Conclusions and lessons learnt

Strengths: land user's view
Strengths: compiler’s or other key resource person’s view
  • IDEI believes in the essential dignity of people and their capacity to overcome social and economic pressures, problems and exploitations. It therefore treats poor farmers as customers and not recipients of charity. It applies business models to achieve development by tapping and developing small enterprises in the rural economy and creating markets.
  • It applies business models to achieve development by tapping and developing small enterprises in the rural economy and creating markets (How to sustain/ enhance this strength: Further promote market creation and then let the market forces take off on their own.)
  • The IDEI market creation approach to development ensures that there is awareness and availability of low-cost products that will have a high poverty alleviation impact (How to sustain/ enhance this strength: Ditto)
  • Growth in this approach will take place if the supply chain is performing and profitable. The early adopters may not be the poorest but if the product meets the needs of the farmers, the rural poor will follow suit and considerable market growth could result, creating a sustainable supply channel (How to sustain/ enhance this strength: Ditto)
Weaknesses/ disadvantages/ risks: land user's viewhow to overcome
  • IDEI needs to work more closely with the government agencies. While market creation seems to be a very useful model, it needs to tap the government resources which are pumped every year in the business of promotion of drip irrigation.
Weaknesses/ disadvantages/ risks: compiler’s or other key resource person’s viewhow to overcome
  • IDEI's reach is dependent on its ability to access donor funds. This might become a limitation at some stage.

References

Compiler
  • Shilp Verma
Editors
Reviewer
  • Fabian Ottiger
  • Deborah Niggli
Date of documentation: Jan. 20, 2009
Last update: April 4, 2018
Resource persons
Full description in the WOCAT database
Linked SLM data
Documentation was faciliated by
Institution Project
Key references
  • IDEI Affordable Micro Irrigation Technologies: Marketing Manual. International Development Enterprises, USA.Phansalkar, S.J. (2003). Appropriate Drip Irrigation Technologies Promoted by IDEI: A Socio-Economic Assessment. International Development Enterprises, India (IDEI),Verma, S., Tsephal, S. and Jose, T. (2004). Pepsee Systems: Grassroots Innovation under Groundwater Stress. Water Policy,:
  • Phansalkar, S.J. (2003). Appropriate Drip Irrigation Technologies Promoted by IDEI: A Socio-Economic Assessment. International Development Enterprises, India (IDEI),:
  • Verma, S., Tsephal, S. and Jose, T. (2004). Pepsee Systems: Grassroots Innovation under Groundwater Stress. Water Policy,:
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