farming system - new paradigm - 041208
TRANSCRIPT
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CHANGING RURAL AGRIBUSINESS
ECONOMY
THE EMERGING PARADIGM
Devashish
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Farming changing life of Rural
people
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Why Agri Business?
Two sectors have the ability to enable India
leapfrog development-wise : Agriculture and
Information Technology. These areas are
capable of generating maximum wealth with
relatively modest investments.
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Indian Agriculture: Imperatives
Present
Value
Potential
ValueMarket
Inputs
Finance
Research
Education
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Indian Market
Dispersed Spread over600,000 Villages
Fragmented - Over100 million Unique Customers
Heterogeneousin nature.
Poorpenetration of communication facilities
Poorinfrastructure facilities
Low literacy levels
However, Purchasing Poweron therise
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The Agri-businessDomain - The Players
FarmerOutput
Inter-
mediaries
Output
Companies
ServiceProviders
Extension
Workers
KnowledgeProviders
Input
Dealers
Input
Companies
Development
Organizations
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Current Scenario
Lack Of Credit &Insurance
Dependence On
Dealer / Brokers
Substandard Goods
Nil BargainingPower
High Cost OfBorrowing
Results In
Lack Of AuthenticInformation
LeadsTo
Poor Choice OfPortfolio
Poor ManagementPractices
Inability To Store
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INEFFICIENCY IN FARM OUTPUT BUSINESS
FARMERKUCCHA
ARTEYA
PUCCA
ARTEYA
BROKER BUYER
LOCATION
ROLE
OTHER
BUSINESS
MARGINS
FARM
2 5%INTEREST > 36%
2 5%
GROWS
CROP
VILLAGE MAIN MANDI TOWNS
2 5%
AGENT
CONSOLIDATEOUTPUT
FINANCEFARMER
AGENT
CONSOLIDATESTOCKS OFKUCCHAARTEYA
LINKS PUKKAARTEYA WITH
BUYERS
GETS INFOFROM MANDIS
DEALER IN
INPUTS
INTERMEDIARIES ADD 35 50% TO COSTFOR MARGINAL SERVICE
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So.
Look at the Alternate of the same in a littledifferent perspective
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MarketLed Model
Focus-
Farm as
Enterprise
Money-to-Money
Technology Base
Diverse
Market need
based Choice
Farmer seen as
AGRIPRENEUR Monitoring strongand very
important
IT a tool for manybusiness process
e.g. MI, MR
Reaching Farmers
In Groups,
Cooperative,
Producers
Companies
Market Research
Farmer
Research &
Development
Farmer
Expected Output
Higher Return
per unit
Investment
Extension Agent
Joint Analysis
Facilitator
Consultant
Collaborator
Key Consideration
Optimizing Return
per Unit
Investment
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The draft National Policy for Farmers alsorecommends:
Corporate farming; and
Company farming
Besides many other options
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To achieve:
Contract Marketing through PPP;
Market Linkages Backw
ard & Forw
ard byreengineeringsupply chain;
Financial Linkages for Productive andConsumption loans and address the need for insurance;
and
Knowledge Linkage Skills, Trainings, New
IEC Tools & Techniques
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Whether as:
Patrons of farmers in welfare-mode as
extended arm of the governments, donors,
others; or
Friends of the farmers in supply driven
participatory development mode; or
Collaborators and partners in developmentin demand driven business mode
interfacing farmers with trade & industry.
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Thank You !