Dr. Sachin Ashok Kale, Executive Director, Innovative Agrilife Solutions Pvt Ltd, Bilaspur, Chhattisgarh, talks about agriculture and business avenues.
Anybody who wants to enter into agriculture sector is nowadays keen on low investment and maximum profit. In India, the landholding of farmers mostly is small. Our company has made the farmers into groups and entered into buyback agreement for their produce. The younger generation is keen about doing agriculture as part time mostly, and some want to take it up as full time occupation. Those who have a bigger landholding want to enter into commercial agriculture and earn. Even a small farmer can earn good profit if he goes for diversifying their portfolio of their produce.
Indian agriculture is based on three segments. Input segment, the first one, is used before production of any agriculture produce and includes land preparation, water management, land management, seeds, and fertilisers. A farmer who is keen about producing seeds can earn good profit if he ties up with companies that will buy his seeds. But this process involves proper setup, skill, and technical knowhow. When a person wants to go for farm segment, establishing soil conditioning labs is a good option. Farmers can also go for producing organic manure. This segment also involves farm machinery which can be rented out. The farmers can earn good profit as in India agriculture activity goes on throughout the year, and so there is need for machinery all through the year. A farmer in Chhattisgarh purchases cow dung, prepares organic manure, and sells it at a high profit. Organic fertilisers are growing in importance every day. The farmers have to reduce usage of urea component or chemical fertilisers in a gradual manner, and at the end of 4th year, the soil can be called as fully organic. Such advisory services can also be taken up as business model. Water treatment is another aspect as Indian farmers mostly depend on the season. Many farmers are going to bore wells, and thus they can get water to grow crops all through the year. In Karnataka, in many places the water level is below 600 feet, and the farmers use borewells to pump water to supply to fields.
The second segment is production, where the farmers have to wait for minimum of 3 months to start earning anything as the plants need 60 days at least to grow and start yielding fruits. When the farmers have full control over the input segment, they can go for production of grains, vegetables, fruits, or flowers. Production segment cannot fetch money from day one. There are lot of factors such as heat, humidity, rains and insects that control the production. There is also acute labour shortage. In many states, labours leave for the city and return to their place once the monsoon starts, do the cropping, and enjoy the harvest. This cycle goes on in many places. The production is more difficult than business, which is the third segment, supply chain.
Production segment can be started when farmers have proper knowledge, proper skillset, and ample money. They have to work on money management, need, and yield. Any management needs earning and yield. Production capacity cannot be increased by using fertilisers. It is already predefined. The farmers cannot make it 200% or more of yield. Every land piece has its capacity. They have to follow innovative practices to improve crop yield. The production decreases with input segment. From the input segment, we can take seed, machinery, fertiliser, earth, equipment, labour, and with all these we can start cultivation and production. Farmers can go for mixed cultivation to maximise the income. In many paddy fields, there is 2 to 3 feet deep water which is not actually needed for the crop. in some areas, farmers have started doing fishery in this water.
The next segment is supply chain of the produce which is a business model. With the supply chain established, one can start production, earning from day one. If we are a dealer of paddy, we need not go for production, but we can buy it from farmers, sell to someone else like millers to earn our profit. We do not need any landholding for this. We can work on a cold storage for storing perishable crops. The produce can be modified, value added and sold to earn good income. Many farmers are taking up supply chain business. In places like Gwalior, Indore, and Nagpur, we find mymandi app where a company purchases vegetables from a farmer directly and sells it to customers. In Hyderabad, three is raitaru bazaar where farmers can come and sell their produce to get instant money. The tech-savvy farmers come together and change the way the produce is sold and converted into money. They modify the produce, value add, make the end product, and sold to earn good money. All these 3 segments have a vital role to play in agriculture to earn maximum money out of it. Technical engineers have come up with AI solutions in the input segment in particular. They put the AI equipment or ChatGPT types of apps on the website where the farmers can get remedies for their requirements.
Agriculture segments have a huge potential in India. This we could visibly see during the pandemic when all other sectors came to a halt, agriculture sector alone moved on. Agriculture is not a loss making segment. It can be a profitable venture. Farmers can follow money management and go by SWOT (strength, weakness, opportunity, threat) analysis before entering into agriculture sector. they can do the market analysis first and select to enter the segment such as input or production or supply chain. The most difficult segment is the production segment where we have less control over factors. So it is better if farmers can go with SWOT analysis and start their venture.
What are the innovative agriculture practices that have opened up new avenues in Agri business?
We have observed Tulsi or basil plants in almost all the houses. The leaves of Tulsi is required by the tea companies. So farmers can go for cultivating Tulsi to earn good money. Medicinal crop cultivation is another sector for maximised profit. Some can go for dairy production as the Agri waste can be fed to animals and the output of animals can be used to make manure and sold. Also the milk from the animals can be sold. Mushroom is another upcoming market. Farmers can go for vertical farming to increase the production. Quinoa millet is a super food and can be a game changer for someone who is interested to cultivate this.
In what ways can technology be leveraged to enhance Agri business opportunities?
Technology has been helpful in reducing dependency on many factors which are beyond human control. If there is a huge shortage of water or less water, farmers can go for drip system to cultivate the crops. When there is excessive heat, farmers can go for greenhouse to grow crops in a better way. Technology is required in providing information, sell products to other areas where there is shortage of the produce, such as selling Bangalore tomato in Delhi at a good price. Drones are nowadays used to make fumigation of insecticides or fertilisers. But technology incurs cost, and so farmers have to balance its usage to maximise the profit.
What are the potential challenges faced by Agri entrepreneurs?
Whatever the farmers produce, they have to sell it first. They should know the capacity of the market for the produce. If the requirement is less, they should not cultivate this crop. Machinery and labour have to be addressed properly with proper business plan. So the aim of all farmers to make maximum profit can be achieved only when the challenges of labour, material, and market are handled.
How can farmers and entrepreneurs collaborate to create mutually beneficial business venture?
When a person wants to enter into agriculture venture, he cannot immediately compete with an established farmer. Since most of the farmers are not ready to accept new methods, they can start with two segments such as input and supply chain to reduce the dependency on input segment. The farmers cannot straightway take a piece of land on rental basis and start cultivation and sell the produce. For this land has to be taken on rent basis, spend money on preparation, and then cultivate. The rent for the land has to be managed from the income out of selling the produce. The produce can be directly sold to customers too. In Chhattisgarh, we tell the farmers what to grow and go for buyback of their produce. We are not involved in production. We can start with supply chain and then come to production slowly. It needs initially 3 to 4 years to balance the segments.
What is the role of sustainability in Agri business opportunities?
There is huge scope for sustainability in agriculture. In places like Bangalore and Pune, the IT people are interested to do the agriculture over the weekends. Sustainability is an important factor in getting money out of this business.
Are there any emerging trends or niche markets in agriculture that offer promising business prospects?
Farmers should work on the requirements of the people or customers and move to the particular field. They have to do the market research and take up production. In Kolkata, many farmers are selling ornamental fish as there is requirement for these fishes. They can take up ginger cultivation or rose, especially Noor Jahan variety which is being developed by agriculture college in Lucknow. The essence of t his rose is sold at a high price in India. So the business model has to be worked out. Agriculture will flourish in every country and area as it is a human need and cannot be neglected. In countries like Israel, they cultivate paddy in vertical farming model. It is an innovative technology. They also use aeroponics to cultivate plats. In India there is always a demand for organic produce.
How can Agri business integrate with global market and expand their reach?
Entrepreneurs should be interested to work in supply chain segment. A small producer of a masala powder can extend his presence in other countries too. There are restrictions for exports, and so it is slightly difficult for Indian farmers to access global market. When a person is working in supply chain segment, he can use it effectively by getting the farmers as his partner. This way the Indian farmer can access global market too.
What are the key factors to consider when exploring Agri business opportunities in different regions and countries?
It depends on the market research. By selling produce, which is scarce in one part of the country, he can make a good business. By having a cold storage the perishable produce can be stored. Selling cut vegetables or ready to cook mixes can be good options. By improving the shelf life of the produce using technology, it will be a viable choice for them. With good storage system and transportation system, the profit can be manifold. Increasing the shelf life of produce is an emerging trend to bring new lease of life to farmers.
What government policies or support systems exist to encourage Agri business ventures?
A new entrepreneur should not depend on the help from the government. When the farmers go for good profit, they should not think of any assistance from the government except getting seeds at concessional rates or fertiliser or storage. There should be less dependency on the schemes and start own ventures. Government can think of bringing all produce under one umbrella, MSP. The government is trying to everything to support. They can reduce the business bureaucracy for agriculture produce in the market, improving the infrastructure, and cold storages to make produce available all through the year. The government has to play a huge role to safeguard the farmers. Policies have to be made to suit the situations to help the farmers.
Dr. Sachin Ashok Kale
Email: infoagrilife@gmail.com
Phone:: 9425530260
Anybody who wants to enter into agriculture sector is nowadays keen on low investment and maximum profit. In India, the landholding of farmers mostly is small. Our company has made the farmers into groups and entered into buyback agreement for their produce. The younger generation is keen about doing agriculture as part time mostly, and some want to take it up as full time occupation. Those who have a bigger landholding want to enter into commercial agriculture and earn. Even a small farmer can earn good profit if he goes for diversifying their portfolio of their produce.
Indian agriculture is based on three segments. Input segment, the first one, is used before production of any agriculture produce and includes land preparation, water management, land management, seeds, and fertilisers. A farmer who is keen about producing seeds can earn good profit if he ties up with companies that will buy his seeds. But this process involves proper setup, skill, and technical knowhow. When a person wants to go for farm segment, establishing soil conditioning labs is a good option. Farmers can also go for producing organic manure. This segment also involves farm machinery which can be rented out. The farmers can earn good profit as in India agriculture activity goes on throughout the year, and so there is need for machinery all through the year. A farmer in Chhattisgarh purchases cow dung, prepares organic manure, and sells it at a high profit. Organic fertilisers are growing in importance every day. The farmers have to reduce usage of urea component or chemical fertilisers in a gradual manner, and at the end of 4th year, the soil can be called as fully organic. Such advisory services can also be taken up as business model. Water treatment is another aspect as Indian farmers mostly depend on the season. Many farmers are going to bore wells, and thus they can get water to grow crops all through the year. In Karnataka, in many places the water level is below 600 feet, and the farmers use borewells to pump water to supply to fields.
The second segment is production, where the farmers have to wait for minimum of 3 months to start earning anything as the plants need 60 days at least to grow and start yielding fruits. When the farmers have full control over the input segment, they can go for production of grains, vegetables, fruits, or flowers. Production segment cannot fetch money from day one. There are lot of factors such as heat, humidity, rains and insects that control the production. There is also acute labour shortage. In many states, labours leave for the city and return to their place once the monsoon starts, do the cropping, and enjoy the harvest. This cycle goes on in many places. The production is more difficult than business, which is the third segment, supply chain.
Production segment can be started when farmers have proper knowledge, proper skillset, and ample money. They have to work on money management, need, and yield. Any management needs earning and yield. Production capacity cannot be increased by using fertilisers. It is already predefined. The farmers cannot make it 200% or more of yield. Every land piece has its capacity. They have to follow innovative practices to improve crop yield. The production decreases with input segment. From the input segment, we can take seed, machinery, fertiliser, earth, equipment, labour, and with all these we can start cultivation and production. Farmers can go for mixed cultivation to maximise the income. In many paddy fields, there is 2 to 3 feet deep water which is not actually needed for the crop. in some areas, farmers have started doing fishery in this water.
The next segment is supply chain of the produce which is a business model. With the supply chain established, one can start production, earning from day one. If we are a dealer of paddy, we need not go for production, but we can buy it from farmers, sell to someone else like millers to earn our profit. We do not need any landholding for this. We can work on a cold storage for storing perishable crops. The produce can be modified, value added and sold to earn good income. Many farmers are taking up supply chain business. In places like Gwalior, Indore, and Nagpur, we find mymandi app where a company purchases vegetables from a farmer directly and sells it to customers. In Hyderabad, three is raitaru bazaar where farmers can come and sell their produce to get instant money. The tech-savvy farmers come together and change the way the produce is sold and converted into money. They modify the produce, value add, make the end product, and sold to earn good money. All these 3 segments have a vital role to play in agriculture to earn maximum money out of it. Technical engineers have come up with AI solutions in the input segment in particular. They put the AI equipment or ChatGPT types of apps on the website where the farmers can get remedies for their requirements.
Agriculture segments have a huge potential in India. This we could visibly see during the pandemic when all other sectors came to a halt, agriculture sector alone moved on. Agriculture is not a loss making segment. It can be a profitable venture. Farmers can follow money management and go by SWOT (strength, weakness, opportunity, threat) analysis before entering into agriculture sector. they can do the market analysis first and select to enter the segment such as input or production or supply chain. The most difficult segment is the production segment where we have less control over factors. So it is better if farmers can go with SWOT analysis and start their venture.
What are the innovative agriculture practices that have opened up new avenues in Agri business?
We have observed Tulsi or basil plants in almost all the houses. The leaves of Tulsi is required by the tea companies. So farmers can go for cultivating Tulsi to earn good money. Medicinal crop cultivation is another sector for maximised profit. Some can go for dairy production as the Agri waste can be fed to animals and the output of animals can be used to make manure and sold. Also the milk from the animals can be sold. Mushroom is another upcoming market. Farmers can go for vertical farming to increase the production. Quinoa millet is a super food and can be a game changer for someone who is interested to cultivate this.
In what ways can technology be leveraged to enhance Agri business opportunities?
Technology has been helpful in reducing dependency on many factors which are beyond human control. If there is a huge shortage of water or less water, farmers can go for drip system to cultivate the crops. When there is excessive heat, farmers can go for greenhouse to grow crops in a better way. Technology is required in providing information, sell products to other areas where there is shortage of the produce, such as selling Bangalore tomato in Delhi at a good price. Drones are nowadays used to make fumigation of insecticides or fertilisers. But technology incurs cost, and so farmers have to balance its usage to maximise the profit.
What are the potential challenges faced by Agri entrepreneurs?
Whatever the farmers produce, they have to sell it first. They should know the capacity of the market for the produce. If the requirement is less, they should not cultivate this crop. Machinery and labour have to be addressed properly with proper business plan. So the aim of all farmers to make maximum profit can be achieved only when the challenges of labour, material, and market are handled.
How can farmers and entrepreneurs collaborate to create mutually beneficial business venture?
When a person wants to enter into agriculture venture, he cannot immediately compete with an established farmer. Since most of the farmers are not ready to accept new methods, they can start with two segments such as input and supply chain to reduce the dependency on input segment. The farmers cannot straightway take a piece of land on rental basis and start cultivation and sell the produce. For this land has to be taken on rent basis, spend money on preparation, and then cultivate. The rent for the land has to be managed from the income out of selling the produce. The produce can be directly sold to customers too. In Chhattisgarh, we tell the farmers what to grow and go for buyback of their produce. We are not involved in production. We can start with supply chain and then come to production slowly. It needs initially 3 to 4 years to balance the segments.
What is the role of sustainability in Agri business opportunities?
There is huge scope for sustainability in agriculture. In places like Bangalore and Pune, the IT people are interested to do the agriculture over the weekends. Sustainability is an important factor in getting money out of this business.
Are there any emerging trends or niche markets in agriculture that offer promising business prospects?
Farmers should work on the requirements of the people or customers and move to the particular field. They have to do the market research and take up production. In Kolkata, many farmers are selling ornamental fish as there is requirement for these fishes. They can take up ginger cultivation or rose, especially Noor Jahan variety which is being developed by agriculture college in Lucknow. The essence of t his rose is sold at a high price in India. So the business model has to be worked out. Agriculture will flourish in every country and area as it is a human need and cannot be neglected. In countries like Israel, they cultivate paddy in vertical farming model. It is an innovative technology. They also use aeroponics to cultivate plats. In India there is always a demand for organic produce.
How can Agri business integrate with global market and expand their reach?
Entrepreneurs should be interested to work in supply chain segment. A small producer of a masala powder can extend his presence in other countries too. There are restrictions for exports, and so it is slightly difficult for Indian farmers to access global market. When a person is working in supply chain segment, he can use it effectively by getting the farmers as his partner. This way the Indian farmer can access global market too.
What are the key factors to consider when exploring Agri business opportunities in different regions and countries?
It depends on the market research. By selling produce, which is scarce in one part of the country, he can make a good business. By having a cold storage the perishable produce can be stored. Selling cut vegetables or ready to cook mixes can be good options. By improving the shelf life of the produce using technology, it will be a viable choice for them. With good storage system and transportation system, the profit can be manifold. Increasing the shelf life of produce is an emerging trend to bring new lease of life to farmers.
What government policies or support systems exist to encourage Agri business ventures?
A new entrepreneur should not depend on the help from the government. When the farmers go for good profit, they should not think of any assistance from the government except getting seeds at concessional rates or fertiliser or storage. There should be less dependency on the schemes and start own ventures. Government can think of bringing all produce under one umbrella, MSP. The government is trying to everything to support. They can reduce the business bureaucracy for agriculture produce in the market, improving the infrastructure, and cold storages to make produce available all through the year. The government has to play a huge role to safeguard the farmers. Policies have to be made to suit the situations to help the farmers.
Dr. Sachin Ashok Kale
Email: infoagrilife@gmail.com
Phone:: 9425530260