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Essay: Product Service System (PSS) – agriculture in India focus

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Product Service System (PSS) is an emerging global trend to minimize the environmental impacts on both productivity and consumption. It also looks after the long-term relationship with customers by providing them integrated services.

Having a look at India which is sixth largest economy and forth largest agriculture sector, agriculture plays a pivotal role for the sustainable and developmental growth of Indian economy but is declining and currently contributes to 17% of Indian GDP. Agriculture sector also provides job to 53% of the population of India (HEMANT SINGH, 2018). Not only it feeds 1.3 Billion people but also looks after employment of the poor, production and demand generation (Government of India, 2015-2016).

PRODUCT SERVICE SYSTEM

From traditional way of selling products PSS model offers a mix of both products and services. It is a strategy that promises a stronger customer supplier relationship, this will help supplier to maintain the quality of the product due to close exposure to customers. A stronger customer supplier relationship can help in maintaining sustainability in the in the market as supplier can understand the demand of the product in the market which will help in less wastage and reduced environmental impact. In order to have a proper utilization of the resources three factors are taken into account:

Product Life

It basically describes the durability of product. It is as of now referenced as a positive result of the proprietorship structure and is therefore, just as ‘sharing’, firmly identified with ‘possession’. The product life is acceptable till a time the product is not refurbished as new innovations can decrease the life cycle and reusability of the products. It is argued that re-used products are more harmful to the environment than the novel products. To overcome this negative effect new prospects has to be introduced like performance enhancement, functionalities and updates (Lucas Hüera, 2018).

Consumption

A consumption pattern can be analyzed from the behavior of consumer buying pattern and the data can be applied to the whole supply chain management. Sustainably consumable products if developed can have a good positive effect on environment and can benefit the stakeholders (Lucas Hüera, 2018).

Cooperation

By cooperation sustainability issues like ecological product usage increases. If more information and knowledge is shared between the producers and consumers an ecologically beneficial environment can be created (Lucas Hüera, 2018).

Product Oriented

In product-oriented model a provider gives services with the product sold. This creates a value to the customer and creates a value chain for the next order. For example, a maintenance contract, a financing contract etc.

Use Oriented

In use oriented the product is still owned by the producer and is only responsible for repair, maintenance and control. A regular fee or contract is made for the use of the product. There is another concept of product pooling where the product is rented or shared simultaneously.

Result Oriented

Result oriented is a process where the company sells outcomes. Such result-based companies are highly agile in nature and controls the product environment. For example, companies selling their storage spaces to minimize harvest loss.

INDIAN AGRICULTURE SECTOR OVERVIEW

For centuries Indian agriculture was identified as subsistence farming, primitive techniques, low yield, and production deficits could not be irradiated. To overcome these challenge “Green Revolution” was launched in 1965 that consist of using fertilizers, modern irrigation technique and high yield crops with the help of America (Chakravarti, 2013). Agriculture sector is known as the backbone of the Indian economy and has been facing a lot of challenges. Challenges such as whether, low production, storage wastage continuing fragmentation of land and dominance of fragmented markets are hindering the agricultural sector. Gross value added by agriculture in India is estimated to be Rs 17.67 trillion or US$ 274.23 billion in FY2018 (India Brand Equity Foundation, 2018). India produces about 284.83 million tons of food grain per year and the production is increasing, but losses remain static to 10%. The main problem for this cause is improper storage and an average of 6% out of 10% loss takes place during storage of food grain. To meet the demand of increasing population and exports modern irrigation techniques, storage facilities and transportation are being upgraded to make agriculture sustainable in terms of economic profitability, customer satisfaction, reduction in environmental impact and reduce waste.

India’s agriculture growth is expected to grow by 2.1 per cent in 2017-18, followed by industry at 4.4 per cent and services at 8.3 per cent according to economic survey (ETmarkets, 2018).

AGRICULTURE SECTOR PROBLEMS

In India out of 100% grain drown 70% is used by farmers for their own use. During the transition from farm to customer the grains has to go through a lot of transition like harvesting, cleaning, threshing, in bin drying and transportation. During this transition a lot of wastage occurs due to improper handling, improper storage facilities, biodegradation due to micro-organisms, pests etc.

Farmers store grain in bulk in locally made storage structures with local materials. But for the better storage of the grains cleaning and drying is needed and has to be stored in a controlled environment. Storage loss is the most important reason of grain loss in India and affects both the environment and the economy (Agriculture and consumer production, 2018).

The root cause of this problem is analyzed as:

Lack of Awareness:

The rural population still use the traditional way of storing grains and have very little or no knowledge of the post-harvest handling of the grains.

Bad transportation

The farmers still transport their grain on local transport. Very little emphasis is taken on cleanliness of the transportation. Currently private sector FMCG companies are buying goods from storages and have much better transportation facilities to avoid wastage.

Harvest period losses

The agriculture sector of India is highly criticized for number of farmers suicide, with the profit they make they can only afford tillers and personal mobility vehicle. The Government of India has taken initiatives to modernize the agriculture sector as forth-fifth sales of the tractors are financed and some state government are giving subsides for tractor purchase. For example, Telangana and Andhra Pradesh has increased the subsidy from Rs 20,000 to Rs 25,000 in FY2019. Similarly, Gujrat stare Government has increased subsidy from Rs 24,000 to Rs 32,000 (Shyam, 2019). With the constant push of the government India is slowly modernizing its farmers.

Post-Harvest losses

Due to established government institutions surveys are conducted to research market surplus and post-harvest losses. The data reveled that either secondary or primary market served almost 96.74 per cent of villages. And about 78.9 per cent of the villages had storage capacity of less than 20 tons. With more fixation in evaluation of post-reap misfortunes, a complete across the country quantitative evaluation of collect and post-reap misfortunes for 46 agricultural produces was completed to assess the degree of gather and post-reap misfortunes (DARE/ICAR, 2011).

ITEM Quality Loss ,1000 ton % of total production
Losses in transport from field to threshing floor 971.39 0.79
Losses In threshing 1085.76 0.89
Losses in Winnowing 584.62 0.48
Losses in Transport from threshing floor to storage 193.40 0.16
Losses in storage at producer’s level 484.40 0.40
Total Losses at producer’s level 3319.57 2.72
Table 1: Post-harvest loss during operations (Joshi B.L., 2004)

Figure 1 Post Harvest Losses (Deepak Kumar, 2017)

PESTLE ANALYSIS

POLITICAL

Indian agriculture is influenced mainly by the politics, which has an extension from incorporation of new policies for the farmers to steps taken on welfare and development and the political factor is usually related to the central government which is in power.

RASTRIYA KRISHI VIKAS YOJANA:

Financial changes started since 1991 have put the Indian economy on a higher development direction. Yearly development rate in the all-out Gross Domestic Product(GDP) has quickened from beneath 6 percent amid the underlying long stretches of changes to more than 8 percent lately.

The Planning Commission in its approach paper to the Eleventh Five-Year-plan has expressed that 9 percent development rate in GDP would be attainable amid the Eleventh Plan time frame. More than 50 percent of the workforce of the country still depends upon horticulture for its vocation. Moderate development in Agriculture and associated areas can prompt intense worry in the economy claiming the populace dependent upon this part is still vast.

A noteworthy reason behind the moderate development in agriculture is the reliable decline in interests in the division by the state governments. While open and private ventures are expanding complex inspectors, for example, framework, comparable speculations are not inevitable in Agriculture and unified parts, prompting trouble in the network of ranchers, particularly that of the little and minimal portion.
Thus, the requirement for boosting states that increase their interests in the Agriculture and partnered divisions has been felt. Concerned by the moderate development in the Agriculture and united segments, the National Development Council (NDC), in its gathering hung on 29th May, 2007resolved that an exceptional Additional Central Assistance Scheme (RKVY) be launched.
Present another Additional Central Assistance plan to boost States to draw up plans for their agribusiness division more exhaustively, taking ago-climatic conditions, characteristic asset issues and innovation into record, and incorporating domesticated animals, poultry and fisheries more completely.

BASIC FEATURES OF RKVY:

The Rashtriya Krishi Vikas Yojana (RKVY) has been conceived as a comprehensive intervention dependent on neighborhood agro-climatic conditions to improve speculation to accomplish 4% agrarian development rate in the eleventh Five Year Plan. RKVY is a quantum hop in development from the variegated schematic methodology pursued so far through diverse yet strait-jacketed plans, to a totally new methodology in agriculture planning by enabling the States to initially design a technique and after that structures the schemes to meet that system by giving assortment and adaptability in plan structure.

Under Stream-I of RKVY States have attempted undertakings in the field of Micro/Minor Irrigation, Watershed Development, Horticulture, Marketing Infrastructure and so forth in2007-08. A measure of Rs. 1247.59 crore has been discharged to States under Skydiving 2007-08.
The RKVY goes for accomplishing 4% yearly development in the horticulture sector during the XI Plan period, by guaranteeing an all-encompassing advancement of Agriculture and allied sectors. The primary goals of the plan are:

  • To boost the states to build open interest in Agriculture and allied sectors.
  • To give adaptability and self-governance to states during the time spent arranging and executing Agriculture and partnered division schemes.
  • To guarantee the readiness of agribusiness anticipates the regions and the states based on agro-climatic conditions, accessibility of innovation and natural resources.
  • To guarantee that the neighborhood needs/crops/needs are better reflected in the agricultural plans of the states.
  • To accomplish the objective of diminishing the yield holes in imperative harvests, roughhoused interventions.
  • To augment comes back to the ranchers in Agriculture and associated sectors.
  • To achieve quantifiable changes in the creation and profitability of various segments of Agriculture and partnered divisions by tending to them in a holistic way.

ECONOMIC:

CREDIT: Accessibility of sufficient credit is indispensable for each segment and horticulture is not a special case. In India, Commercial Banks, Cooperative Banks, and Regional Rural Banks (RRBs) oversee smooth stream of credit to rural segment. In any case, a huge chaotic market exists for credit to agrarian division in India, which provide opportune store to this part however at the over the top rate of premium. Among organized credit dispensing to horticulture business banks assume an imperative job with offer of about 70% whereas agreeable area and RRBs contribute 20% and 10% respectively.

Kizan Credit Card (KCC) conspire was acquainted with give adequate and auspicious help from the keeping money framework to the agriculturists for their development needs. This plot has gained fast ground and more than645 lakh cards issued up to October 2006.
The ‘Ranch Credit Package’ reported by the Government of India in June 2004 stipulated multiplying the stream of institutional credit for horticulture in ensuing three years. Yearly focuses for this bundle are being outperformed in the two consecutive years from its acquaintance and it is likely with outperform in the third year also.

PROTECTION: Protection is a prime need to relieve vulnerability that holds on in agriculture. In India, horticulture is yet influenced by such factors, which are beyond control of person. In this way, there is an incredible requirement for agrarian protection in India. Keeping this in mind, Government of India as a team with the General Insurance Corporation of India (GIC), had presented National Agricultural Insurance Scheme(NAIS) from rabi 1999-2000 season. The principle target of this plan is to protect the agriculturists against misfortunes endured by them because of harvest disappointment by natural calamities. Rural Insurance Company of India (AICIL) which was incorporated in December 2002 assumed control over the execution of NAIS.AICIL presented Rainfall Insurance Scheme called ‘Varsha Bima’ amid 2004southwest rainstorm period. Varsha Bima accommodated five distinct choices suiting varied necessities of cultivating network.

  • Occasional precipitation protection dependent on total precipitation from June to September.
  • Sowing disappointment protection dependent on precipitation between June 15 and August 15.
  • Precipitation appropriation protection with the load doled out to various weeks June and September.
  • Agronomic record built based on water necessities of crops.
  • A fiasco choice covering incredibly unfavorable deviation of half or more in precipitation amid the season. During kharif 2006, this

Varsha Bima conspire is being executed in around 150districts covering 16 states the nation over. AICIL is additionally guiding another weather-related protection item for mango and espresso.

SOCIAL:

Since long time, Indian agriculturists have been confronting various socioeconomic problems, for example, badgering by moneylenders, powerlessness to reimburse obligations following crop misfortune, failure to get medicinal treatment for the family, and so on. The issue is compounded by absence of positive and agreeable help from banks particularly in the face of harsh climate and market changes.
Financial situation of agriculturists might be represented with the way that a rancher having as much as 15 sections of land of land and hence considered a wealthy agriculturist in Vidarbha, with a normal salary of Rs 2700per section of land per annum, had a pay simply minimal more than what he would have earned the lawful the lowest pay permitted by law for every one of the 365 days of the year. India comprising of 16% of total populace supports just on 2.4% of land resource.

Agriculture part is the main business to the two-third of its populace which gives employment to the 57% of work compel and is a crude material source to expansive number of enterprises. Regardless of depiction of cultivating as a solid and cheerful method for life, agriculture part encounters one of the most astounding number of suicides than any other industry. Agriculturists’ suicide isn’t just detailed in Vidarbha district of Maharashtra, but also from Punjab, Uttar Pradesh, Kerala, and Karnataka.

TECHNOLOGY:

Methodologies and projects have been coordinated towards substitution of traditional and wasteful actualizes by enhanced ones, empowering the agriculturists to possess tractors, power tillers, gatherers and different machines, accessibility of custom administrations, support services of human asset improvement, testing and assessment and research and development. A vast modern base for assembling of the rural machines has likewise been produced. Presentation of mechanically progressed equipment through augmentation and exhibit other than institutional credit has additionally been taken up.

Supplies for asset protection have likewise been received by the farmers. Under different Government supported plans like Macro Management of Agriculture, Technology Mission for Oilseeds, Pulses and Maize, Technology Mission on Horticulture and Technology Mission on Cotton, money related help is provided to the ranchers for the buy of recognized agrarian actualizes and machines.

ENVIRONMENT:

The relationship between Indian agribusiness and rainstorm:

Downpours is the lifeblood for India agrarian part. The nation is one of the world’s largest producers and shoppers of everything from sugar, rice, vegetables t soybeans. Agriculture part utilizes around 60 percent of the all-out workforce in India a contributes around 17 percent of the India’ GDP.

Agribusiness additionally contributes around 2025 percent of India’s national pay; consequently, a decrease in farming development will pulldown the general development rate in GDP. On the off chance that farming yield decays, by and large GDP growth will maybe be limited at 5-6 percent rather o 7-8 for each cent. In India, rainstorm is urgent for summer sow crops, like, soybean, rice, cotton a sugarcane. With just 40 percent of farmland flooded, most by far of India’s, little ranchers rely upon storm to water their seeds. Deficient downpours this year have cause grounds of every single significant yield to fall behind in term of year-on-year (Y-o-Y) estimates, stopping prospects for greater harvests of rice, oilseed and sugar cane. Indian Farm Minister, Sharad Pawar told Parliament on 24th July that storm drains have stayed feeble in the State of Bihar, India’s driving corn maker, an Uttar Pradesh, which typically creates the greater part of India’s sugarcane.

LEGAL:

Water system: Arrangement has been made in various, states for constructing, improving water system works. The authoritative measures go in Assam, Bihar, Karnataka, Orissa Madhya Pradesh and Maharashtra accommodate the irrigation works. The approach of entrusting the upkeep of little water system attempts to the Panchayati Raj associations has been acknowledged by the conditions of Assam, Andhra Pradesh, Bihar, Gujarat, Jammu and Kashmir, Tamil Nadu, Madhya Pradesh, Orissa, Karnataka, Kerala, Punjab, Rajasthan and Uttar Pradesh, and in some other states, the usage is under way. The Ministry of Agriculture and Irrigation is thinking about to embrace an investigation of all the existing institutions on state tube-well in the different states with uniform model circulating it to the conditions of entrusting the primary attempts to the Panchayati Raj has been acknowledged by the conditions of Assam, Andhra Pradesh, Bihar, Gujarat, Jammu and Kashmir, Tamil Nadu, Maharashtra, Madhya Pradesh, Karnataka, Orissa, Kerala, Punjab, Rajasthan and Uttar Pradesh, in a few expresses the execution of this policy is in progress.

HARVEST SECURITY: The Destructive Insects and Pest Act, 1914, gone by the central Government given to implies against the section of infections from other countries into India. Appropriate arrangements additionally exist in the Act for counteracting the spread of plant bugs and ailments starting with one state then onto the next in the nation. For implementing the arrangements identifying with the avoidance of the section of damaging peatland illnesses into the nation, a chain of plant isolate, and fumigation stations has been built up in exceptionally imperative airplane terminals and seaports and land boondocks. The state governments have likewise passed appropriate authoritative measures for managing with tile pandemics of plant infections and irritations, engaging them to compose measures for compound control. The achievement of plant insurance measures depends upon the adequacy of the synthetics utilized for controlling the plant bugs and infections. At the same time, it is essential that the synthetic compounds utilized don’t represent any genuine hazard to human and creature life. It is important to guarantee the nature of chemicals manufactured in the nation or imported and showcased for undertaking plant protection measures.

APPLICATION OF PRODUCT SERVICE SYSTEM in INDIAN Agriculture

Having a sustainable and environmental friendly ecosystem to generate and store agri products needs a lot attention and action by policy makers, farmers, private sectors etc. It also requires modern technology, practices and policies. No individual can tackle this problem alone until and unless a collaboration is made. Indian agriculture sector can benefit a lot from public service system by:

1. Farm Mechanization

Human resource or self-employment has been developed in farm mechanization to train in agriculture sector. Farm Machinery Testing Institutes (FMTTIs) has been established in Madhya Pradesh, Haryana, Anantapur District and In Assam. The FMTTIs has been teaching diverse programs like operations, maintenance of farm machinery and repairing to produce skilled human resource for agricultural mechanization.

2. Quality control of agriculture machines and implements

For the sustainable development of agriculture and enhanced crop productivity improved quality machinery is required. Quality is also important in addressing the obdurate competitiveness of the manufacturing industry. The FMTTIs constantly test the machines in Indian climatic conditions. The Budni institute is the only national Authority to check the tractors performance according to OCED standards.

3. Promotion of post-harvest management

Privatization in the agriculture sector will lead to better facilities and farmers will gain knowledge and will lead to better sustainability. Government of India has taken initiatives by launching a helpline number and an application to called Mobile Interventions and technologies for Rural Areas (Mintra) where farmers

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