Regarding privatisation

1. New trends in Agricultural Extension :
Privatization of Extension
• Meaning
• Factors influencing Privatization of
Extension
• Merits
• Problems
• Strategies with examples

2. PRIVATISATION EXTENSION
.On November 5, 2001, Private-Public Partnership with Dhanuka
Group in Hoshangabad district of Madhya Pradesh began a new
chapter in history of agriculture system in India.
The services are mainly funded and delivered by government in
Indian context. But there are private players who also fund or deliver
extension services.
This process of funding and delivering extension services by private
individuals or organizations is called private extension.

3. These concepts about the privatization emphasizes
three aspects, they are:
1. It involves extension personnel from private
agency/organization
2. Clients are expected to pay the service fee (sometimes
private extension may not expect fee from clients e.g.
NGOs).
3. Act as supplementary or alternative to public extension
service.
Marketing is crucial for ensuring balanced and continuing
development of sustainable agriculture.

4.  Factors for Privatization of Agricultural Extension
Service in India:
The following factors have to be considered for privatization of
agricultural extension service in India.
 Types of crops cultivated
 Socio-economic strata differences among the farming
community viz. tenancy, ownership, leased, small, marginal,
medium and large farmers categories.
 Entirely drastic agro-climatic variation
 Different approaches followed in various developing/developed
countries and their utility possibilities in our country,
environment etc.
 Changes in rainfall pattern, vagaries of monsoon, floods,
cyclone etc.

5. Characteristics of Private extension system
• These are presented following Saravanan (2001)
 Objectives:
 Private extension mainly concern with maximum
possible profit to the clients through advisory services
 Target group:
 Their remuneration is obviously linked with increased
income of the farmers Target group.
 Private extension mostly concentrates on big farmers,
farmers producing commercially and in favorable
environments.

6. • Clients
• In Private extension system, clients are more committed and
careful about extension services, because they are paying for
the services.
• Offerings
• Profit oriented services include not only technology transfer
but also supply of critical inputs based on seasonal needs and
convenience of the farmers.
• Technologies
• Private extension agency transfers the location specific and
demand - driven technologies. Technologies are specialized
and costly, but are profitable.

7. Organizations
Private extension personnel become more accountable to clients
and highly motivated
 They become professionally sound and will put constant efforts to
upgrade their knowledge
Funding
 Private extension service gets funds from farmers’ contribution and
developmental agencies.
Extension service
Advisory nature of service.
 Extension becomes purchased input to farmers and it generates
new income methods.
Methods
 Private consultancy mostly adopts personal contact methods, as
group approach will reduce their chances of getting consultancy fee.

8. Strategies for Privatizing Extension
 Following Saravanan and Shivalinge Gowda (2000), they are
 Commercialization of extension services.
 Complex, demand-driven technologies in the public extension
system should be provided for particular cost.
 Introducing contract extension system
 Introducing share cropping system.
 It will increase the extension personnel’s accountability and
commitment to all service.

9. Reasons behind the Privatization Issue.
 Financial burden on Government
 Disappointing Performance of Public Extension Service
 Commercialization of agriculture
The privatization of extension service on the basis of payment is
primarily based on two major considerations.
 Firstly, the guarantee to provide expected profits.
 The second question relates to marketing, private
agencies can help by providing:
 Information about market opportunities,
 Input supply,
 Infrastructure,
 Consultancy,
 Technical service
 Marketing service
 Other services: Crop, livestock insurance
 Farm information advisory centers.

10. Problems of Privatization of Extension
• The consequence of privatization is user’s fee
• The feasibility of charging fee for extension service raises a
question on the paying capacity of the farmer.
• In case the message does not yield the desired result,, the service
will be rejected for future.
• Privatization does not care for sustainability;
• Private extension concentrates big and progressive farmers
• Private extension is less education oriented and more commercial
in nature.
• The human resources development
• Role of organizing, motivating and guiding farmers for
empowerment will be sidelined

11. Merits of Privatization
 Extension generates new income, extension become
economic input.
 Provides demand-driven service.
 Increases the voice of farmers
More cost effective with efficient and quality service.
 Privatization complements or supplements the efforts of
public extension.
 Extension personnel become more clients accountable.
Increases staff professionalism.
 Clients (farmers) are more committed to service.
Doesn’t concentrate only on food grain production but
will promote crop diversification.