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Grow for GrowthA way forward in Agriculture
Law for the LandThe Hindu Succession Act,1956
Law for the LandAgriculture Land Ceiling Act, 1960
(a)Where holder is not a member of a family(b) Where family have 5 members (1) land of yielding two crops - 10 acres - 18
(2) land of yielding one crop - 15 acres - 27(3) dry land - 30 acres - 54
Landholding size The average size of operational land
holdings has reduced by half from 2.28 ha in 1070-71 to 1.16 ha in 2010-2011
Land holdings in the marginal category [less than 1 ha] constitute 67% of the operational holdings
Small & marginal holdings together constitute 85% in terms of number of personal holdings & 44% of the operational area
Share of Agriculture in Economy
Agriculture & allied sector accounted for 13.7% of the GDP [2013], accounts for about 11% of our exports,
sector that engages 49 percent of the workforce of the country grows at 1.1 percent in 2014-15,
the gross capital formation in agriculture, which was 18.3 percent of agri-GDP in 2012-13 has fallen to 14.8 percent in 2014-15.
Share of Agriculture in Economy
India’s crop yields are yet only 30% to 60% of the best crop yields achievable in the farms of developed as well as other developing countries.
Goldman Sachs (2014) calculated that labour is 4 times more productive in industry and 6 times more productive in services compared to agriculture.
Present Agronomy
Famers are sowing different verities for same crop
Their package of practices are different Their quality are different They have small volume They sell in same fix & short time Villages do not have storage facilities
neither in homes nor in warehouses
Present Agronomy Small & Marginal Farmers purchased their agri-
input from the last person in the supply chain They have to pay maximum prize, no
guarantee for quality & timely not available Due to small quantity they soled their produce
to last person in supply chain They got minimum prize for their produce Every 41 minutes one farmer commit suicide in
India
Conditions of Urban Market
I. Quantity – huge quantity - Quantity will determine distance
II. Quality – Same & consistent quality -Quality will determine prize
III. Competitive prize – market forces determined the upper limit of prize
For Small & Marginal Farmers are not possible to fulfill those conditions
Possible Solutions
Is it possible that farmers should pool their land & start collective farming?
It is not possible because land give them social status also
Can group of farmers adopt same package of practice, in which they will select one crop with same verity & follow same PoP? If profit will grow they can…
Producer Company Model
Farmers groups Service Providers Production Manager Company CEO Board of Directors Chairman Production Plan
Producer Company Model Market Linkage
1. Production Marketing through Market Contract Method2. Input Supply through Dealership
Finance Linkage1. Consumption Loan through Thrift & Credit2. Production Loan through Bank Short term through KCC
Producer Company Model
Knowledge Linkage1. Technic through Package of Practice2. Training through Service Provider3. Tools through custom hiring bases
End to End Solution for Farming from Single organization
Agri- Education & Extension
Total 65 Agriculture Universities Total 199 Collages Total Under Graduate Students 13,000PG, MS, Ph. D Students 7500 ICAR Research Centers Total 641 KVKs Krishi Darshan Radio & TV Chanel
Prime Minister's Initiatives:
• Pradhan Mantri MUDRA (Micro Units Development and Refinance Agency) Yojana
• ‘Start-up India; Stand up India’ to promote bank financing for start-ups
• New Ministry Skill Development & Entrepreneurship created
• Make in India campaign
Startup Ecosystem• Disruptive Innovation• Disruptive Technology Infrastructure • Disruptive Service Delivery Supply Chain• Disruptive Business Model• Government Policies• New Funding Venues• Risk Taking Generation • Believing in Ideas- Knowledge Economy
Early Source of Capital• Friends and Family• Incubators & Startup Centers • Angel Investors- 200 in India• Venture Capital• Seed Funds • Impact Investors• PE funds• CSR Funds
Successful Startups
The Climate Corporation got its start in 2006 under David Friedberg and Siraj Khaliq with the idea of selling crop insurance based on super-specific weather data.
• SolumThe company started in 2009 & operated on two levels offering advanced soil testing to farmers and a software platform built to aid in soil management decisions.
Successful Startups
• Blue River Technology automated vision for the future. Think GPS-guided tractors and aerial imaging drones mean that the agriculture industry is already automated
• Farmeron The business plan for Farmeron – a software-as-a-service business
Indian Startups
Inputs – Manish Agri Biotech, Richcrore, Sri Biotech, Super Agree Seeds,
Barrix Agro Services, MITRA, Global Easy Water Project
It Services – Reuters Market Light, Skymet, Uniphore, Eurvaka Tech, Basix Krishi, Mobile in Mud
Indian Startups
Processing – I-WAC’s, Khyali Foods, Gee Pee
Supply Chain – Sohan Lal Commodities, Frontal Rain, ThinkLink’s, Stellapps
End to End – National Collateral Management, LT Foods Ltd, Milk Mantra, Global Green Company, INI Farms, Zameen, LEAF, Farms & Farmers
My Latest Initiatives
• Malwa Fresh Portal• Seed Cooperatives• Mutual Added Cooperatives• Women Milk Cooperatives• Producers Companies
– Seed Producer Companies– Horticulture Producer Companies– Poultry Producer Company
