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

approaches_2369 - India

Completeness: 75%

1. General information

1.2 Contact details of resource persons and institutions involved in the assessment and documentation of the Approach

Key resource person(s)

SLM specialist:
SLM specialist:

Sadangi Amitabha

amitabha@ide-india.org

International Development Enterprises - India

C 5/43, Safdurjang Development Area (1st & 2nd Floor), New Delhi 110016

British Indian Ocean Territory

Name of the institution(s) which facilitated the documentation/ evaluation of the Approach (if relevant)
International Development Enterprises - India (iDE-India) - United States
Name of the institution(s) which facilitated the documentation/ evaluation of the Approach (if relevant)
IWMI International Water Management Institute (IWMI) - India

1.3 Conditions regarding the use of data documented through WOCAT

The compiler and key resource person(s) accept the conditions regarding the use of data documented through WOCAT:

Yes

2. Description of the SLM Approach

2.1 Short description of the Approach

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.

2.2 Detailed description of the Approach

Detailed description of the Approach:

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.

2.5 Country/ region/ locations where the Approach has been applied

Country:

India

Region/ State/ Province:

Madhya Pradesh

Further specification of location:

West Nimar

2.7 Type of Approach

  • project/ programme based

2.8 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.

2.9 Conditions enabling or hindering implementation of the Technology/ Technologies applied under the Approach

social/ cultural/ religious norms and values
  • hindering

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
  • hindering

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
  • hindering

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.

3. Participation and roles of stakeholders involved

3.1 Stakeholders involved in the Approach and their roles

  • 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
3.2 Involvement of local land users/ local communities in the different phases of the Approach
Involvement of local land users/ local communities Specify who was involved and describe activities
initiation/ motivation interactive
planning passive IDEI carrying out awareness creation etc
implementation passive
monitoring/ evaluation passive market surveys, studies, assessments initiated and carried out by IDEI
Research passive planned and carried out by IDEI

3.3 Flow chart (if available)

Description:

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

3.4 Decision-making on the selection of SLM Technology/ Technologies

Specify who decided on the selection of the Technology/ Technologies to be implemented:
  • land users alone (self-initiative)
Explain:

on the basis of their specific requirements.

Decisions on the method of implementing the SLM Technology were made by mainly by land users supported by SLM specialists. Mainly by land users supported by specialists/'service providers' (IDEI, the supporting NGO)

4. Technical support, capacity building, and knowledge management

4.1 Capacity building/ training

Was training provided to land users/ other stakeholders?

Yes

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.

4.3 Institution strengthening (organizational development)

Have institutions been established or strengthened through the Approach?
  • yes, greatly
Specify the level(s) at which institutions have been strengthened or established:
  • local
  • see Annex A3

4.4 Monitoring and evaluation

Is monitoring and evaluation part of the Approach?

Yes

Comments:

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.

4.5 Research

Was research part of the Approach?

Yes

Give further details and indicate who did the research:

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).

5. Financing and external material support

5.1 Annual budget for the SLM component of the Approach

Comments (e.g. main sources of funding/ major donors):

Approach costs were met by the following donors: international non-government (Donor agencies): 100.0%

5.2 Financial/ material support provided to land users

Did land users receive financial/ material support for implementing the Technology/ Technologies?

No

5.3 Subsidies for specific inputs (including labour)

  • none
 
If labour by land users was a substantial input, was it:
  • voluntary
Comments:

No incentives to support labour are given to land users. IDEI supports the whole chain from manufacturers and dealers to assemblers

5.4 Credit

Was credit provided under the Approach for SLM activities?

No

6. Impact analysis and concluding statements

6.1 Impacts of the Approach

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

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

6.3 Sustainability of Approach activities

Can the land users sustain what has been implemented through the Approach (without external support)?
  • uncertain
If no or uncertain, specify and comment:

Entire approach relies on creation of markets which are initially promoted and supported by IDEI. Too early to say whether the market would be sustained after IDEI withdraws but because of the fact that pepsee was a grassroots innovation and emerged spontaneously, there is a good chance. IDEI keeps a five year horizon for its intervention, and targets that market becoms self-sustaining afterwards.

6.4 Strengths/ advantages of the Approach

Strengths/ advantages/ opportunities in the 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)

6.5 Weaknesses/ disadvantages of the Approach and ways of overcoming them

Weaknesses/ disadvantages/ risks in the land user’s view How can they be 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 in the compiler’s or other key resource person’s view How can they be overcome?
IDEI's reach is dependent on its ability to access donor funds. This might become a limitation at some stage.

7. References and links

7.1 Methods/ sources of information

  • field visits, field surveys
  • interviews with land users

7.2 References to available publications

Title, author, year, ISBN:

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,

Title, author, year, ISBN:

Phansalkar, S.J. (2003). Appropriate Drip Irrigation Technologies Promoted by IDEI: A Socio-Economic Assessment. International Development Enterprises, India (IDEI),

Title, author, year, ISBN:

Verma, S., Tsephal, S. and Jose, T. (2004). Pepsee Systems: Grassroots Innovation under Groundwater Stress. Water Policy,

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