Ongoing Projects

Food Processing Industry – Role of Mega Food Parks, Case of Telangana State
Team: AliveluKasturi and ARajani

In India, Food Processing Industries (FPI) sector has been growing at an average annual growth rate of around 11.18 percent. Major industries constituting the FPI, in India, are grains, sugar, edible oils, beverages, and dairy products. Besides ensuring steady flow of income to the farmers, greater linkages with industry could also reduce wastages, particularly in perishables. In this context, the Ministry of Food Processing Industries (MoFPI) is making efforts to encourage investments across the value chain. In this regard, the study makes an attempt to analyse the performance of food processing industry at the macro level in terms of output and employment. Further the study also focuses on the mega food parks in Telangana and the issues and challenges of the MFPs in Telangana and other states.

Processing and preserving of fish, crustaceans and molluscs contribute the highest share of net value added (NVA) to the total net value added of the food processing industry during the period 2012-13 to 2018-19. This sector also contributes the highest share of employment during the period under study. Average annual growth rate of employment is also highest for Processing and preserving of fish, crustaceans and molluscs and the average annual growth rate of NVA is highest for Manufacture of prepared animal feeds.

The food parks play a major role in boosting the performance of food processing sector by creating and adding value and decreasing wastage of food at each stage of the supply chain with special emphasis on perishable goods. The parks would enable the government to interlink the food processing sector with agriculture, horticulture, aquaculture, dairy, meat and other food production sectors for improving the income of farmers. In order to promote the FP industry, it is also recommended to aim for optimum usage of existing schemes like sheep rearing, dairy farming, and fish cultivation. The major aims of MFP are an integrated plan which benefits farmers, women self-help groups, industries and provides employment to youth. A brainstorming workshop was held to understand the issues and challenges faced by the MFPs. Representatives of MFPs from the southern states including Telangana and Maharashtra participated in the workshop. The other stakeholders included Telangana state government officials, self-help groups and NGOs. The major challenges faced by the MFPs is the acquisition of land, lease of land is high, marketing facilities needs to be provided access, and initial investments made by entrepreneurs may become dead investmentsdue to longer waiting times. The government should take action to reduce uncertainty. Despite the ease of setting up smaller businesses, the high level of competition makes it challenging for new business owners to survive. Creating forward linkages to major industries will enable small businesses to concentrate on their core competencies.

RythuBandhu Scheme and Its Impact on Small and Marginal Farmers in Telangana State
Team: Y. Sreenivasulu

Government of Telangana introduced RythuBandhu Scheme (RBS) in the year 2018 to reduce dependency on informal credit and provide investment support. The current study analysed the farmers’ dependence on informal credit sources and whether the implementation of the RBS has reduced such dependency or not. For this purpose, five villages have been selected based on sources of irrigation. While choosing the districts, mandals and study villages, utmost care was taken to make sure that all types of irrigation sources are covered. All the farming households in the study village were surveyed with a structured questionnaire.

RBS gives financial support to farmers towards meeting the cost of the inputs and other initial needs to support farming. It has extended support to all land-owning farmers irrespective of the farm size. The village level study has highlighted that small and marginal farmer occupied the first position in terms of land holdings with 84.4% and semi-medium farmers occupied the first position in terms of area with 41.07 %. The results indicate that semi-medium farmers have benefited from RBS. The study noticed that 26.8 % of own land was not covered under RBS in all the villages, the reasons being not registering in the Pattadar Passbook (PPB), not being shown in the Dharani portal, lacking linkage with Aadhar, Bank account, and PPB, because it is a forest land, community land, wasteland which are not fit for cultivation and non- cultivating lands. Across the study villages, in the case of Bussapur village in Mulugu district, it was also found that RBS is denied to almost 60% of the lands which have been recorded as forest lands. A similar issue is a constraint to getting benefits under RBS in the Gareebpeta village in BhadradriKothagudem district, where 343 (58.4%) acres of land are not covered under RBS. It is also observed that a small portion of land is not covered in Chennaram village in Narayanapeta district and Chekkapally in RajannaSirisilla district, Bodaladinna village in Suryapeta district due to mistakes in PPB and Dharani portal.

It is evident that after the implementation of the RBS by the Telangana government, dependency on informal credit has substantially declined. However, there is no drastic change in credit facilities in the case of marginal farmers despite the implementation of the RBS. It is observed that the percentage of informal credit to them just decreased from 91.8% in 2015 to 90.8% in 2020, with a meagre change of 1%. After RBS, small, semi-medium, medium, and large farmers’ dependence on informal credit sources has been reduced significantly. Across the class, 78 % of the large farmers depended on informal credit in 2015, which was reduced to 64.9% in 2020after the implementation of RBS. In the case of medium-sized farmers, the dependence on informal credit decreased from 82.5% in 2015 to 62.1% in 2020.In the class of small farmers, the percentage of farmers dependent on informal credit decreased from 84.7% in 2015 to 70.2% in 2020. The study also found that the number of pure tenants increased from 16 in 2015 to 26 in 2020 andmixed tenants increased from 71 in 2015 to 136 in 2020. Similarly, the total leased-in area has increased from 364 acres in 2015 to 549 acres in 2020 in the study villages. It is noticed that the lease rent payment method changed more towards fixed cash in 2020. Still, sharecropping is one of the forms of rent payment.

RBS helped to reduce dependence on informal credit sources, but it is criticised for not having an upper limit in terms of landholdings. There is a need to support non landless tenants who cultivate leased-in land. The majority of suicide victims were tenant farmers who found it difficult to sustain themselves through farming but could also not find productive paid work in other employment sectors (NIRD & PR, 2020). The land rights with podu lands also need to be sorted out so that RBS benefits tribal farmers in scheduled areas.

Farmer Producer Companies in Telangana: Performance, Challenges and Farmers Well- being
Team: E. Revathi and Arifa Sultana

The Ministry of Agriculture and Farmers’ Welfare, GoI proposed to form ten thousand FPOs in 2021with a budget of Rs. 6865 crore. Presently there are around 7000 FPOs in the country of which around 50 percent are promoted by NABARD and the rest by institutions like Small Farmers’ Agriculture Consortium (SFAC), National Rural Livelihood Mission (NRLM), and other Cluster Based Business Organisations (CBBO). There are about 460 FPOs in the Telangana State of which 72 percent are promoted by the NABARD.

The objective of the study is to assess the performance and the challenges faced by the Farmer Producer Companies (FPCs) promoted by NABARD, SFAC, NRLM, and others. It also attempts to assess the farmers’ well-being in terms of economic benefits received as well as the social well-being in terms of social protection. Most of the FPCs are registered under the Companies Act and a few are functioning as Mutually Aided Cooperative Societies (MACS). The study has completed survey of selected FPCs under NABARD, SFAC and presently undertaking survey of NRLM promoted FPCs.

The NABARD promoted FPCs have achieved success and are in a growing stage and some have achieved sustainability and others are in the process of achieving sustainability. About 30 FPCs were studied under the project. Most of the FPCs had a positive impact on membership growth, improvement in leadership skills, governance and also adoption of modern technology. The important factors that contributed to better performance on all fronts of the FPCs were regularity in attending the meetings, transparency, accountability, trust between the members and management, exposure visits and various training programmes and market awareness about demand and supply of the produce. Some of these factors contributed to raise the incomes of the members. These FPCs are able to improve the economic well as social wellbeing of the farmers. However, they are facing challenges in terms of a tie up with government agencies like the IFFICO, grow more for fertilizers; MARKFED, NAFED for marketing; TRICOR in case of tribal FPCs; formal credit sources i.e., banks for short run and long run credit; and reliable seed companies to obtain quality inputs at a lower cost. Handholding is required to obtain licenses and need to be connected to institutions to get credit, extension, and marketing services. A state federation of all NABARD promoted FPCs at the state level can serve as a platform to find solutions to the challenges faced by the FPCs.

The SFAC promoted 26 FPCs in Telangana under the two year and three-year programme, mostly located in Adilabad, Vikarabad and Nizamabad districts. About 7 FPCs out 12 FPCs are active in Adilabad, and others have been closed down. The Mahbubnagar Millets FPC under SFAC was promoted by Indian Institute of Millets Research (IIMR), Rajendernagar, Hyderabad located at Deshaipally, Mahbubnagar district, has received revenue of Rs. 13. 87 lakhs during 2020-21 and earned a net profit of Rs. 25,642. The other three FPCs under SFAC named Jai Giridhar; Komrambheem; and Jai Seva were promoted by Indian Society of Agribusiness Professionals (ISAP). The farmers are producing cotton, red gram, and other pulses and jowar. The FPC as well as farmers obtained inputs at a reduced cost compared to market rate. The FPCs under SFAC are in need of storage house and needs to expand their business further with value addition, procurement and processing in order to improve their incomes.

NRLM promoted a few women FPOs in Telangana state. The FPC like Be’Nishan and Bethlaswamy Women Farmers’ Producer Company were promoted by the Society for Elimination of Rural Poverty (SERP) and has been built on the value chain concept by networking its Self Help Groups. Its success in mango business, has led to addition of fruits and vegetables in its value chain and linked marketing to retail chains.

The selected FPCs in Telangana state have shown that performance wise they are able to reduce the transaction cost by networking and bulk purchase and are able to provide inputs to their members at reduced costs which was not possible for them individually. FPCs have made it possible to utilize farm machinery through custom hiring centers at a reduced cost that has substituted high labour cost. Though the FPCs are yet to move into profits to declare dividend, they have nevertheless raised the incomes of the farmers by 24 percent on an average. As the FPCs are in growing stage and some of them need handholding support for an extended period. FPCs are all small holder collectives, and such platforms need to be strengthened in all dimensions so as to raise farmers’ incomes and achieve inclusiveness in agriculture development.

Crop Diversification in Telangana: Problems, Prospects and Policy
Team: P. Dayakar and B. Suresh Reddy

In the context of Telangana, agricultural diversification is of critical importance not only for ensuring the economic well-being of the rural population but also for their sustainability. However, there is no systematic empirical research study available at macro level and field level as well. The specific objectives of the study are i) To assess the patterns and growth of agriculture at aggregate level in Telangana; ii) To examine the source of cropland income growth in overall agricultural growth of Telangana; iii) To analyse the existence of economies of crop diversification among crop enterprises at farm level; and iv)To examine the determinants of cropland diversification at farm-level.

To assess at the state level, the data from official documents, ICRISAT meso-level was utilized. For field level analysis, the study was conducted in the three agro- climatic zones of the Telangana state. In each of these zones the mandals/areas in the districts with existing access to irrigation were selected along with the mandals/areas in the districts where the new irrigation facility has just come or likely to come in a year’s time were selected. This will help us to get an in-depth and comprehensive idea of farmer’s perception with respect to crop diversification and interlinked issues and also factors determining cop diversification. A total of 1080 households were selected for conducting household survey covering different size class of farmers in each of these selected research sites. Similarly, focused group discussions and case studies were also conducted in the selected districts with men and women farmers. Data analysis has been completed and the final report is yet to be submitted.

Impact of Lift Irrigation Schemes on Rural Economy and Labour Migration in Undivided Mahbubnagar District
Team: E. Revathi, Vijay Korra and BharathBhushanMamidi
Supported by: Telangana Water Resources Development Corporation Ltd, Government of Telangana

The project aims to understand the impact of lift irrigation schemes-Rajiv Bheema, JawaharNettempadu, Mahatma Gandhi Kalwakurthy and KoilSagar in erstwhile Mahbubnagar district on farming, labour migration, employment, and rural economy. The objectives of the study are i) to map the changes in rural economy in areas covered under Lift Irrigation Schemes in erstwhile Mahbubnagar district; ii) to assess the impact of lift irrigation schemes particularly in regard to employment and migration among different population groups viz., farmers, landless labour, migrant labour, and traditional occupations using ‘before’ ‘after’ approach; and iii) to document the changes in Palamur Labour and labour contract systems, typical of erstwhile Mahbubnagar, as well as the changing patterns and magnitude of migrant labour. The research tools include survey of 900 households, as well as focused group discussions (FGDs) and in-depth interviews with the stakeholders.

Household survey using structured interview schedules, collection of qualitative data using checklists for FGDs, Interviews of Key Informants, Village Profiles, Case studies have been completed. The project also covered the changing forms of migrant’s labour (duration, destination and type of work) and Labour Hubs (‘addas’) of Mahbubnagar labour in Hyderabad. Data analysis is in progress.

Exploring International Export Destination for Rice in Telangana State
Team: Vidya C.T

Agriculture provides livelihood to more than half of Telangana’s working population and plays a crucial role in supporting the rural economy. The rise in production, increasing buffer stock of paddy, and improved irrigation facility are essential signals of positive economic growth in the State. The surplus production can be diverted to exports. Moreover, there is a rising demand for indigenous non-basmati rice in international markets, which can be exploited to build export markets, thus enhancing the farmer’s income. Against this backdrop, the current study intends to explore the international export destinations for rice in the State of Telangana.

The results show interesting trends. Main rice exporting districts are Hyderabad, rice-growing Nizamabad, and Nalgonda. Telangana’s share in rice exports has been negligible even though production has been increasing. Non-basmati rice exports are higher than indigenous (basmati) rice exports due to higher demand and increased yield. Indigenous (basmati) rice varieties have failed to compete with higher quality rice exports from Thai and Pakistan basmati rice. Farmers in the state have also increasingly shifted to non-basmati rice varieties due to greater demand and new markets like China and Latin America. Telangana faces intense competition from Haryana, Punjab, Uttar Pradesh, and Gujarat with the export of rice. Exports to UAE and the Middle East suffered a decline. Non-basmati rice exports increased due to the addition of newer markets like Western Africa and Latin America.

Status of Agricultural Credit in Urban Areas of Telangana- A Review
Team: P. Aparna

The Government of India aimed at doubling the flow of agriculture credit over a period of three years which was announced in Comprehensive Credit Policy, 2004. As a policy response there was an increase in the number of rural branches and also the volume of agricultural credit during 2000s. Studies examining the quality of the growth of agricultural credit during the period 2001-2011 observed that new types of loans were brought under the category of indirect credit during 1994-2012. One important observation from these studies is that there was a substantial increase in the share of agricultural credit outstanding from urban and metropolitan branches of banks in the 2000s. This trend implies a diversion of agricultural credit towards urban dealers and corporate sector. The flow of credit to agriculture in India after 2000 revealed two grave situations which require a careful examination. On the one hand it has taken new directions in the form of definitional changes in priority sector and new types of loans added under indirect credit. On the other hand, there is poor performance of agricultural credit in terms of output-credit and credit-input ratios. The achievement of credit disbursal target was 114 percent in 2018-19. But the problem is whether it is reaching the right person or not. The credit scenario in Telangana provides enough evidence to the facts mentioned above. According to the RBI Basic Statistical Return (BSR) data, in Telangana the percentage of bank branches in urban and metropolitan areas constituted 43 percent of total bank branches as on March 2006. It had increased to 50 percent during the period as on September 2019. The percentage of bank branches in rural areas declined from 56 to 50 percent during the corresponding period. In the case of distribution of agricultural credit, around 36 percent of was distributed through branches located in urban and metropolitan areas during 2018. The rural credit scenario is highly disturbing in the state. There is a high incidence of indebtedness among agricultural households in the state. The dependence of these households on non-institutional sources is also high. The urban nature of agricultural credit benefits the corporate agricultural sector and affects badly the rural farmers.

The study examines the following questions

1.  Whether the spread of bank branches is on par with the population change due to the reorganization of the districts after the formation of Telangana state

2.  What is the nature and flow of agricultural credit in the state in the recent decade?

3. How much of the agricultural credit distributed through urban and metropolitan branches is actually being given to the farm operations?

According to the district-wise branch data as on 31stDecember 2018 (SLBC), metropolitan braches are concentrated in Hyderabad, Medak, Medchal-Malkajgiri, Rangareddy and Sangareddy districts. Medchal-Malkajgiri district will be study area for metropolitan area. A random sample of borrowers from bank branches of Medchal-Malkajgiri district are selected for the primary study. Two public sector commercial banks i.e., SBI and Andhra Bank are considered for the study. These two banks have highest share of branches (urban and metropolitan branches) as well as agricultural credit disbursed in the state. Based on the information obtained from two branches, 20 borrowers from each branch are selected for the study. Hence, 40 borrowers from two bank branches, one each for SBI and Andhra Bank are contacted for the study. Structured questionnaire is administered across all the selected borrowers. Discussions with the concerned officials of the selected bank branches will also be conducted.

Other Institutional Studies

Smart City Projects and Urban Governance: A Study in Warangal and Karimnagar
Team: C. Ramachandraiah

Government of India Launched Smart City Mission (SCM), to improve the adequate water supply, assured electricity supply, sanitation, including solid waste management, efficient urban mobility and public transport, affordable housing, especially for the poor, robust IT connectivity and digitalization, good governance, especially e-Governance and citizen participation, sustainable environment, safety and security of citizens, particularly women, children and the elderly, and health and education. In this context, the present study has taken up Warangal and Karimnagar Municipal Corporations in Telangana state as case study.

The study has following four broad objectives: i, to examine the role of the SPV/ULB and the technology companies in implementing the Smart City Project (SCPs); ii, to find whether Area Based Development (ABD) projects implemented have shown any distinct improvement in civic amenities compared to other areas in the ULB; iii, analyse the mechanisms employed by the SPVs for cost recovery in the SCPs; and iv, explore whether technology upgradation is a necessary pre- condition for continuing the provision of the high-quality civic services in the long run.

The study relied on secondary data of SCPs under implementation and field observations of the same in Warangal and Karimnagar cities. Discussions were held with the PMCs, the Commissioners and Mayors of both the cities. The study found that projects that have been going on under the SCM is basically improving the current urban infrastructure including developing public spaces like parks/riverfront, renovating public utility buildings like libraries etc. Further, these projects are going on all across the city, not specifically in the area earmarked for ABD. There is hardly any role for the information technology (IT) companies in either providing software support (which is not needed for these projects) or monitoring these projects. From the field study it was found that huge difference the SCPs have made is the availability of expertise in the form of PMCs. The PMCs are functioning as separate units with their own staff and are headed by highly qualified professionals as Team Leaders.

The study makes the following recommendations: 1. ULBs badly need expertise. 2. Vacancies need to be filled. In Karimnagar 54.74 percent of the total posts are vacant with very high percentage of vacancies in Accounts (81.82), Revenue (65.22) and Public Health (55.93) wings. 3.The non-SCP proposals also need faster clearance. 4.A good deal of non-motorized transport (NMT) has been built in both the cities (viz., footpaths and cycle paths). However, most of the network is not utilized. The footpath in front of NIT in Warangal is encroached by vendors, whereas its adjacent cycle path also remains unutilized for the stated purpose. Several footpaths and cycle paths in Karimnagar are also not used much.

Mapping of Science and Technology Interventions in achieving Sustainable Development Goals (SDGs) in Telangana State
Team: E Revathi, B. Suresh Reddy, Alivelu Kasturi and other faculty members

Supported by: Telangana State Council of Science & Technology (TSCOST)

The relevance of SDGs has assumed a greater importance in the present scenario as the world is affected by the COVID-19 global pandemic. It is in this process Science and Technology plays a crucial role in adopting, implementing, and monitoring the SDGs for development. The objective of the study was to map the science and technology interventions for achievement of SDGs in Telangana State at state and local levels. The study tried to map the S&T interventions with respect to all 16 SDGs. However, special attention was paid with respect to SDGs 2 and 5 (persistent) and 4, 10, 13 (slippages).

The study conducted a desk review and a state level brain storming session with relevant stakeholders at CESS, Hyderabad to identify issues with respect to science and technology and their linkage to SDG achievements (shortfalls of existing S&T related interventions and also need for new interventions). Based on the analysis the study identified the focus areas for the S&T interventions in achieving the SDGs in Telangana State. These include

i) Strengthening human resources, ii) Strengthening institutional resources, iii) Agriculture, iv) Environment protection, v) Biodiversity conservation, vi) Forest development and conservation, vii) Water conservation,viii) Water management, ix) Food processing, x) Energy conservation, xi) Affordable health care and safety, and xii) Data generation and management

Telangana State Gazetteer

Overall Coordinator: Prof. E.Revathi; Coordinator: Bharath Bhushan Mamidi

The Telangana State Gazetteer (Sponsored by GAD, Government of Telangana) is prepared for Government of Telangana and is first of its kind initiated by the Government of Telangana after a gap of more than a century of the Imperial Gazetteer of India Provincial Series – Hyderabad State published in 1909. The proposed State Gazetteer aims to present comprehensive information of the different aspects of the State in concise manner as a treasure house of data reflecting the current situation for use by officials and various sections of the society as well. The Gazetteer presents a comprehensive picture of Telangana comprising brief background and historic context of the subject covering the status in Hyderabad State, undivided Andhra Pradesh and Telangana state since 2014. It includes sectors specific to the Telangana State as a whole along with general features of a Gazetteer covering physical and natural factors, administration in the state and also a broad narrative of social, political, economic, and cultural life of the people. Structure of the gazetteer comprising 21 chapters follows the standard framework adopted by Imperial Gazetteers, the Andhra Pradesh District Gazetteers comprising description of habitat, history, people, culture, economy, resources, infrastructure, communications, administration, education, health, justice, development and social welfare, tourism and so on, along with additional chapters that provide an account of irrigation, energy, environment & forests, information technology, and local self-government in line with the changing times and priorities of government since independence.

Progress of work during the reporting period has been remarkable in revising the drafts based on feedback. The State Gazetteer comprises 102 papers covering broad sections viz., People of Telangana, Natural Resources, Telangana Economy- Infrastructure – Trade & Commerce, Social Sector- Education- Health and Social Services, Governance- Administration – Local Self Governance, and Legislature. Alternative subject experts were enlisted for 22 papers. A few new topics were also completed during the year. Work on twenty-two papers was initiated recently covering Power & Energy, Banking, Climate Change, DNTs, Music, Performing Arts, Arts& Crafts, Ethnographic profiles of tribes, Higher Education, and Mines and Mineral Wealth. Consultations were held with recently enlisted subject experts on the scope and framework of the additional topics/ papers. Required information for the new topics was collected from secondary sources and shared with subject experts. Work on the additional topics is in progress.

Fifty-two drafts have been received. While some of these papers are under review, feedback on some papers has been shared with subject experts for modifications. Revised papers are awaited with suitable modifications/ improvements. Final Editing is in progress with regard to 30 papers. First draft is expected covering thirty-one sub themes. Internal review of the drafts has been intensified and feedback is shared with the subject experts for modifying the papers for content or the style. Regular interaction is maintained with subject experts to assist with required reference material.