Remarks by George Deikun, USAID India Mission Director, at the Opening of the “Linking Markets and Farmers” Conference, New Delhi

March 12, 2007

George Deikun, Mission Director, USAID India, addressing the participants at the 3rd conference on "Linking Markets and Farmers: Exploring Leading Practices to Foster Economic Growth in Rural India," in New Delhi,
Photo credit: Vikas Narula, US Embassy.

Good morning Shri Mani Shakar Aiyer, Shri Sharad Joshi, Shri Seshasayee, Dr. Robert Easter, Dr. Braun, Dr. Sheth, ladies and gentlemen. It is my pleasure to join you this morning to help officially open what promises to be an exciting and informative Conference: “Linking Farmers to Markets.” USAID supported this conference as well as its predecessor in Cairo last year and in Chicago the year before. We are thankful to our partner the University of Illinois, the main organizer for these events.

The retail markets of India’s agricultural sector are dynamically changing and I am looking forward to hearing about some of the latest developments from those who have joined us today.

Fresh produce retailing through supermarkets, with integrated supply chains back to the farm is growing rapidly in India. From close to zero in the recent past this market segment is expected to make up over a third of the market in the next several years! This is a stunning development and calls for radical changes in existing marketing relationships.

These developments also mean that small farmers run the risk of being left out of the new system. We must not miss the opportunity to improve the already marginal livelihoods of small farmers. How to integrate small farmers into new marketing systems will be a major component of many of the presentations at this conference. I hope that you will also pay attention to the important fact that women are critical to the agricultural marketing chain and that when we think of including the small farmer, we should keep both men and women in mind.

This gathering is significant because marketing is often-neglected by farmers – especially small farmers - yet it is vital to their income. We also know that marketing realities, marketing structures, and marketing opportunities are rapidly changing both in India and around the world. Farmers need to adjust to these new realities.

A renewed focus on marketing and market linkages will help to increase income for farmers. It will help India and other countries become active players in increasingly competitive international markets. Finally, improved market linkages will ultimately bring better products to consumers.

Currently, there is a need in India to develop new market mechanisms that fit with these changing markets. Since the Green Revolution, the United States has been engaged with India in agriculture and improving productivity in this sector remains a critical area for focusing Indian and U.S. technical collaboration, through the U.S. and India Agricultural Knowledge Initiative (AKI) established by President Bush and Prime Minister Singh. Through partnerships between private and public institutions in both of our countries, the Agricultural Knowledge Initiative is helping farmers to improve marketing, linking them with new technologies and extension and research facilities, and helping them to meet international standards for export.

Although the gains of the past are impressive, not all parts of India benefited equally from the advances in agricultural science and technology. The challenge for the 21st century is to ensure that people everywhere have access to the latest innovations and knowledge that can improve incomes and increase productivity.

A large part of the Indian population directly or indirectly depends on agriculture and stands to benefit from our cooperation. Let us remember that the farmer is the key to the whole system. Ultimately, the decisions of millions of farmers in India determine whether new approaches and technologies are adopted.

This week’s Conference directly supports the U.S. and India’s joint objectives under the Agricultural Knowledge Initiative. It brings together agribusinesses, universities and government agencies. The USAID program in India directly supports several of the marketing initiatives that you will hear about. Like you, we are here to find out what else is going on, and to look into other ways we can support further improvements in agriculture.

I am confident that we will all learn a lot about new and exciting developments in agricultural marketing over the next few days. We must continue to look for ways to link these innovations to farmers.

Thank you.