Agriculture and Rural Development
It’s a dusty September morning, and Kiran Devi is finishing her chores at lightning speed.
“Wouldn’t it be nice to keep 5,000 women waiting, especially when it’s a celebration,” she says with a touch of gushing pride and makes her way to the annual general meeting of the women-owned Aaranyak Agri producer company.
Located in Purnea district in Bihar—one of India’s poorest states—the company is made up of small local women small farmers and producers and lies in the most fertile corn regions in eastern India.
But until recently, small farmers did not fully reap the benefits of this productive land.
Local traders and intermediaries dominated the unregulated market. Archaic and unfair trading practices like manual weighing, unscientific quality testing, and irregular payments made it difficult for small farmers to get the best value for their produce.
“The trader would come, put some grains under his teeth and pronounce the quality and pricing. For every quintal of maize [corn], 5-10 kilos additional grains were taken, sometimes through faulty scales and sometimes simply by brazenly asking for it,” says Lal Devi, one member of the company. “We had the choice between getting less or getting nothing.”
Such practices stirred local women farmers into action, and they formed the Aaranyak Agri Producer Company Limited (AAPC) to access markets directly and improve their bargaining power.
The company established a farmer-centric model and received funding and technical assistance through JEEViKA (livelihoods in Hindi), a World Bank program that supports the Government of Bihar and has achieved life-changing results for Bihar’s rural communities.
Joining forces helped lower costs and boost production. Together, the groups saved $120 million and leveraged more than $800 million in bank loans.
Further, digital technologies have been introduced as an innovative way to improve the production, marketing, and sale of small-farmers’ produce.
For example, women farmers receive regular periodic updates on their mobile phones to learn best practices to grow corn as well as weather information to inform farming decisions.
During harvest season, farmers receive daily pricing information from major nearby markets to help them stay abreast of the latest variations in prices.
This is the sixth in this year's series of posts by PhD students on the job market.
What connects smallholder farmers in the semi-arid tracts of northwest India to the oil and gas barons of Texas and Oklahoma? A little green bean called guar! The seeds of this humble legume yield a potent thickening agent that greatly enhances the effectiveness of fracking fluid. As the fracking boom started in the United States, demand for guar skyrocketed, resulting in windfall gains for farmers across northwest India, the epicenter of global guar cultivation. Nearly simultaneously, India began rolling out its massive national rural electrification scheme, which prioritized certain villages based on a strict population-based eligibility criterion. In my job market paper, my coauthor Rob Fetter and I combine these two “natural experiments” to show that large-scale grid electrification can dramatically increase non-agricultural employment in rural economies when economic opportunity complements infrastructure—but if these complementary economic conditions are lacking, the grid may scarcely make a dent.
This blog is the fifth in a series of ten blogs on commodity market developments, elaborating on themes discussed in the latest edition of the World Bank’s Commodity Markets Outlook. Earlier blogs are here.
The World Bank’s Beverage Price Index is projected to stabilize in 2019 after a more than 5 percent decline in 2018 from the previous year. Beverage prices declined almost 9 percent in the third quarter (q/q), with roughly similar losses across all three components (coffee, cocoa, and tea), reflecting more supplies than expected in all markets.
Beverage price index
This blog is the fourth in a series of ten blogs on commodity market developments, elaborating on themes discussed in the latest edition of the World Bank’s Commodity Markets Outlook. Earlier blogs are here.
Grain prices are projected to edge up 1 percent in 2019 after an estimated 10 percent rise in 2018, and oils and meals prices are expected to increase more than 2 percent next year, reversing a 2 percent decline this year. However, these price forecasts are subjected to risks that include energy, trade, and foreign exchange movements.
After gaining some momentum in early 2018, most food commodity prices weakened significantly in the third quarter. The World Bank’s Grain Price Index declined nearly 6 percent in Q3 but was 8 percent higher than a year ago. The Oils and Meals Price Index fell almost 11 percent in Q3, and stands 3 percent lower than a year ago.
This blog is the third in a series of ten blogs on commodity market developments, elaborating on themes discussed in the latest edition of the World Bank’s Commodity Markets Outlook. Earlier blogs can be found here.
Recent developments and outlook: coal
Coal prices rose 12 percent in the third quarter—the fifth straight quarterly increase—and are up 23 percent relative to the same quarter of 2017. Weather patterns in Asia and Europe have been the main drivers of the rise in prices. Low winter temperatures at the start of the year raised demand for fuel for heating, while unusually hot summer temperatures boosted electricity demand for air conditioning. In addition, low hydro availability and supply constraints in the two largest markets--China and India—increased coal imports.
Prices are projected to decline from current elevated levels as China is expected to reduce coal imports by stimulating domestic production, as well as by lowering the share of coal in energy consumption. Upside risks include continued strong growth in electricity demand in other emerging markets that will be met to some extent by coal. Production shortfalls in China and India could also raise import demand and support prices.
“Once, it was a rodeo day here and my son asked for money to go. But I didn’t have the money and told him to sell our farm’s bananas on the road instead. So, he took 50 bunches of bananas and sold them all in a few hours. Soon I started a banana business. The sales enabled me to expand my business to packed lunches for truckers. Over time, with the help of my family, the road administration, and my own investments, I started receiving invitations to make meals for college students and travelers.”
Angela, small-holder farmer and entrepreneur, São Paolo, Brazil.
Angela told us her story one afternoon as we ate the delicious lunch she had prepared for us at her rather humble roadside eatery in rural São Paulo, Brazil.
Her story was not only touching but also summed up the importance of entrepreneurial foresight and the power that collaboration holds in opening new doors for poor farming communities.
in Brazil - (although these farmers make up a much smaller proportion of Brazil’s overall farming community and have a different landholding structure).
Even though family farmers represent a small slice of Brazil’s cooperatives, the impact of their collectives is considerable.
The productivity of Brazil’s agriculture is evident.
Yet, farmers’ incomes continue to be subdued.
To help farmers earn more from the land and move onto a higher trajectory of growth, India has gradually shifted its policy focus to linking farmers to markets, as well as enabling them to diversify their production and add value to their produce.
So how do Brazil’s farmer collectives work?
More than 1,000 years.
That’s how long recent estimates suggest it would take in some developing countries to legally register all land – due to the limited number of land surveyors in country and the use of outdated, cumbersome, costly, and overly regulated surveying and registration procedures.
But I am convinced that the target of registering all land can be achieved – faster and cheaper. This is an urgent need in Africa where less than 10% of all land is surveyed and registered, as this impacts securing land tenure rights for both women and men – a move that can have a greater effect on household income, food security, and equity.
Perhaps one of our answers can be found in rural Tanzania where I recently witnessed the use of a mobile surveying and registration application. In several villages, USAID and the government of Tanzania are piloting the use of the Mobile Application to Secure Tenure (MAST), one of several (open-source) applications available on the market. DFID, SIDA, and DANIDA are supporting a similar project.
This blog is the second in a series of ten blogs on commodity market developments, elaborating on themes discussed in the latest edition of the World Bank’s Commodity Markets Outlook. Earlier blogs are here.
Recent Developments and Forecasts
Oil prices have been volatile in 2018, with the price of Brent, the international barometer, ranging from $63/bbl to $86/bbl. Prices have been buffeted by an array of geopolitical and macroeconomic factors, notably supply disruptions in Venezuela, and the reinstatement of U.S. sanctions against Iran. These factors supported prices this year, particularly in September and October; however, prices fell sharply in early November as fears of a supply shortfall receded after the United States announced temporary waivers to its sanctions on Iran for eight countries, as well as stronger-than-expected U.S. oil production.
Its annual average economic growth of 7.6 percent between 2007 and 2017 far exceeds the average global growth rate of 3.2 percent.
This high growth has contributed to reducing poverty: Extreme poverty was mostly eradicated and dwindled from 8 percent in 2007 to 1.5 percent in 2017, based on the international poverty line of $1.90 a day (at purchasing power parity).
Access to basic services such as health, education and asset ownership has also improved significantly.
The country has a total of 32 hospitals and 208 basic health units, with each district hospital including almost always three doctors.
The current national literacy rate is 71 percent and the youth literacy rate is 93 percent.
The recent statistics on lending, inflation, exchange rates and international reserves (Sources: RMA, NSB) confirm that
Gross foreign reserves have been increasing since 2012 when the country experienced an Indian rupee shortage.
Reserves exceeded $1.1 billion, equivalent to 11 months of imports of goods and services, which makes the country more resilient to potential shocks.
The nominal exchange rate has been depreciating since early 2018 (with ngultrum reaching Nu. 73 against the US dollar in early November).