Mr. Priynashu Jain, Founder, Agri Joy LLP, Agra, UP, explains about the market support for hydroponic products.
We can provide end to end solutions including constructions, ground support, and market as to where to sell the product and scope. Hydroponics is the way of growing vegetables or fruits in soilless method. Only inert media such as cocopeat are used. Water plays an essential role in supplying nutrients to plants. We are spread in places like Andaman and Nicobar islands, other territories, and regions.
We should know that agriculture contributes to 16% of Indian GDP, and vegetable production is actually on the rise continuously year after year. Last year, India broke the records in exporting fruits and vegetables to other countries. The domestic demand also has increased to 35% now. Most of the vegetables that we consume today originate from other countries. For example, potato, tomato, brinjal, carrot, green peas, and bell peppers have originated from countries like South America, Africa, and Central Asia. Now, lettuce is also accepted well in Indian society along with yellow and red bell peppers, and the demand is on the rise.
In the hydroponically grown vegetable market, Zepto has reported 3 times increase in hydroponic vegetable sales, particularly lettuce, spinach, and basil. Zomato HyperPure have reported 50% rise in their vegetable demand after they introduced hydroponic section. They get more demand for microgreens and baby spinach. BigBasket also has introduced hydroponic vegetables as a special category and reported 3 times increase in sales of produces like lettuces and bell peppers, and tomatoes.
For any grower, the basic question is where to sell the hydroponic products and who will buy. There are various channels such as eCommerce, D2C who sell to consumers, B2B channels, HoReCa, and exports which comes at a later stage when we have good chunk of farm land. eCommerce is a good option quite viable, but it wants to ensure steady supply chain. When we break it, in platforms such as BigBasket, or Zepto, they will blacklist us. We have to associate with them only when we have steady supply of fruits and vegetables to supply to them. D2C is a very good market segment wherein we can get good profits. I have seen clients selling lettuces and other herbs and vegetables at more than Rs. 1800 per kg. They may be selling in chunks or per head. So, such general rates help us to get good profits. B2B channels are plenty, and the supply chain starts from Mandi and APMC which are comfortable sources, but they should be avoided as they do not provide good rates. In places like Dehradun or Guwahati, APMC gives good rates to growers but not always. They should be reliable and good option for us.
HoReCa is a good option as we can supply to people who in turn supply to HoReCa. We have to approach the vendors with logistic supply chain to supply to them. It is very convenient as we will get steady demand without any hassle, and it will be taken care of by them only, and we can get good prices. We can also charge premium price with HoReCa clients. We can fill in their tender form, quote competitive prices, and get the benefit of getting high marketing prices by supplying to them regularly. We can get good value for our products, establish good customer client relationship, etc.
On the export part, it is always reserved for people who have a huge chunk of land or farm with them with at least 5 to 6 acres of hydroponic farm. Only then we can aim for export which has a very good market option when we have the supply chain figured out, have reliable and trustworthy buyers from the other end as otherwise we may face problems. We need to start trading in this aspect and push the products with a steady supply. When we are unable to meet their demand and expectations, we will not be treated well by them. Europe has a good market share and usually import good amount of horticultural products from India which includes basil, lettuce, and leafy vegetables. In Northern America, India has an edge as they provide horticultural and Agri equipment.
They make supply chain available and can reach out to their markets. Mostly processed products are being supplied to Northern American regions. Middle East, Saudi Arabia, and Qatar can easily set up a trustworthy and reliable supply chain if we have Indian partners there. Fresh vegetable market will increase by 1.5 billion by 2022 and will increase. We have worked in many states and provide market access and connect to growers and clients. We have supply chain belts across several regions and get competitive price for the products.
What current market scenario suggests increase in demand for hydroponic products?
Although leafy vegetables have competitive edge as they can be grown off season also and get good prices, vegetables do not have much fluctuation round the year and can get good prices with good shelf life which can go up to 7 to 10 days. We can also store them if we are unable to sell them on the same day.
What strategies are in place to educate consumers about the benefit of hydroponically grown produce?
Many policies are in place now. eCommerce platform runs good campaigns these days with regard to health, nutritional diet we should have. Social media also promote in many ways how we can improve the diet by having nutritional fruits and vegetables. Hydroponics has a pivotal role here. And the supply chain is very small but get good value. Industries are doing good in terms of campaigning and educating people with regard to hydroponically grown vegetables and fruits which shows a positive trend.
Are there any specific government initiatives or subsidies for hydroponic farmers in your region?
There are several initiatives. People sometimes get sceptical about investing lot of money on hydroponics or controlled environment agriculture. But this is going to be the future soon. Farmers will start following it on a mass level as the climatic patterns have disrupted the supply chains now. We face untimely heavy rains, snow falls, and the government is aware of these calamities that hamper the whole food supply chain. So they have come up with several government schemes and subsidies. We can get subsidies for polyhouses and covering structures but not for all varieties. Central government provides 50% subsidy which is credit linked backend subsidy. We have to take loan to avail this subsidy as it shows we are trying to grow. We have also to search for Agri infra fund, a scheme by government of India wherein we get capital collateral free for Rs. 2 crores for 7 years at a rate of interest of 6%. Here we can avail very good capital benefit from government. This is an online procedure, and we can take help from Bank officials if we need. We should have a minimum of 5 farmers in a group as we can scale it big. Government insists that the project related to precision farming, CEA, or hydroponics can be on a mass level so that it will reduce operational cost. There are individual loans also available for supply chain management, warehousing, cold storage, or improving the whole value chain. Capital is easily available now.
How can small scale farmers access the benefits of market support programs for hydroponics?
We can have 4 or 5 farmers come together, apply for Agri infra fund and we can get good amount of loan with which we can scale up the hydroponics farm and compete better in the market.
Are there established channels or platforms connecting hydroponic farmers with consumers or retailers?
eCommerce platforms are the best sources, but apart from these, there are many B2B players who have come up towards targeting niche marketing. There are many such players who are procuring only hydroponically grown vegetables and supplying to high or premium society. So, we can research about them, reach out to them, and get the connection established.
Can you share success stories of hydroponic farmers who have thrived with market support?
When we established market in Andaman and Nicobar, the clients were sceptical about how to go about it and where to grow. We assisted them with whole supply chain process, went on to help them reach out market players and handhold them in the initial days. They could grasp a good portion of B2C market also. Next, when we established farm in Odisha, who are now catering to high premium society, we helped them in marketing campaigns. They are now running the farms well and working on expansion of the same. Similar is the case in Jammu and Guwahati. There are many more success stories which have gone to show that when hydroponics is done correctly, it will be successful and it will be the future.
What challenges do hydroponics farmers commonly face in terms of market access, and how are they addressed?
The biggest concern is hydroponics should not be treated as easy. I have seen many people assuming that hydroponics since it is automated will get good returns if they just invest money. It is like any other business. We have to put in some initial time, resources, and effort to understand the business fully and run it well. People who have invested time in the initial phases can sustain it. Hydroponics farming faces challenges because people have projected it as easy. But like any other business, it can give good returns if we put in our efforts to take hold of the business to make it sustainable.
Are there certifications or labelling programs that help hydroponic products stand out in the market?
There are private certifications with regard to organic products in India to certify organically grown vegetables, but there is no concrete or reliable one in the Indian market for hydroponic products.
How can farmers participate in collaborative marketing efforts to collectively promote hydroponic produce?
Farmers have to understand the value chain to have an edge. But they depend on APMC very much. We know that APMCs are the worst solutions as they are unreliable. When we want to do the nest generation things in hydroponics, we have to do, take hold of the market, and supply chain and prices. We should not depend on APMC as we will not get good prices. We should know what marketing is, where the profit margin is taken away by others, we have to stop them, go to the market, make farmers group or producers company and try to reach out to hotels, restaurants, and cafes. Food industry always has an edge over the other players.
In regions with well-established market for traditional Agri markets, what strategies are actually introduced to promote hydroponic products?
As an exporter, we have to identify the buyer who is trustworthy and provide good volumes of orders. We have to participate in trade fairs and expos to get good buyers. D2C we have to reach out through social media and make pages very trendy. In B2B, we have to be thorough with the value we provide and how to solve the problems as we need to be trustworthy and reliable to have a sustainable relationship with the buyers.
Anything else the farmers need to take cre of before going for hydroponics?
We should not have any superficial expectations, treat this as any other business to get good returns by putting in efforts, do market research thoroughly, establish connections, and doing some trade initially to know the challenges and how to solve them.
CONTACT: Mr Priyanshu Jain
Founder - Agri Joy Pvt Ltd
Email: info@agrijoy.in
Telephone: 7906482293
We can provide end to end solutions including constructions, ground support, and market as to where to sell the product and scope. Hydroponics is the way of growing vegetables or fruits in soilless method. Only inert media such as cocopeat are used. Water plays an essential role in supplying nutrients to plants. We are spread in places like Andaman and Nicobar islands, other territories, and regions.
We should know that agriculture contributes to 16% of Indian GDP, and vegetable production is actually on the rise continuously year after year. Last year, India broke the records in exporting fruits and vegetables to other countries. The domestic demand also has increased to 35% now. Most of the vegetables that we consume today originate from other countries. For example, potato, tomato, brinjal, carrot, green peas, and bell peppers have originated from countries like South America, Africa, and Central Asia. Now, lettuce is also accepted well in Indian society along with yellow and red bell peppers, and the demand is on the rise.
In the hydroponically grown vegetable market, Zepto has reported 3 times increase in hydroponic vegetable sales, particularly lettuce, spinach, and basil. Zomato HyperPure have reported 50% rise in their vegetable demand after they introduced hydroponic section. They get more demand for microgreens and baby spinach. BigBasket also has introduced hydroponic vegetables as a special category and reported 3 times increase in sales of produces like lettuces and bell peppers, and tomatoes.
For any grower, the basic question is where to sell the hydroponic products and who will buy. There are various channels such as eCommerce, D2C who sell to consumers, B2B channels, HoReCa, and exports which comes at a later stage when we have good chunk of farm land. eCommerce is a good option quite viable, but it wants to ensure steady supply chain. When we break it, in platforms such as BigBasket, or Zepto, they will blacklist us. We have to associate with them only when we have steady supply of fruits and vegetables to supply to them. D2C is a very good market segment wherein we can get good profits. I have seen clients selling lettuces and other herbs and vegetables at more than Rs. 1800 per kg. They may be selling in chunks or per head. So, such general rates help us to get good profits. B2B channels are plenty, and the supply chain starts from Mandi and APMC which are comfortable sources, but they should be avoided as they do not provide good rates. In places like Dehradun or Guwahati, APMC gives good rates to growers but not always. They should be reliable and good option for us.
HoReCa is a good option as we can supply to people who in turn supply to HoReCa. We have to approach the vendors with logistic supply chain to supply to them. It is very convenient as we will get steady demand without any hassle, and it will be taken care of by them only, and we can get good prices. We can also charge premium price with HoReCa clients. We can fill in their tender form, quote competitive prices, and get the benefit of getting high marketing prices by supplying to them regularly. We can get good value for our products, establish good customer client relationship, etc.
On the export part, it is always reserved for people who have a huge chunk of land or farm with them with at least 5 to 6 acres of hydroponic farm. Only then we can aim for export which has a very good market option when we have the supply chain figured out, have reliable and trustworthy buyers from the other end as otherwise we may face problems. We need to start trading in this aspect and push the products with a steady supply. When we are unable to meet their demand and expectations, we will not be treated well by them. Europe has a good market share and usually import good amount of horticultural products from India which includes basil, lettuce, and leafy vegetables. In Northern America, India has an edge as they provide horticultural and Agri equipment.
They make supply chain available and can reach out to their markets. Mostly processed products are being supplied to Northern American regions. Middle East, Saudi Arabia, and Qatar can easily set up a trustworthy and reliable supply chain if we have Indian partners there. Fresh vegetable market will increase by 1.5 billion by 2022 and will increase. We have worked in many states and provide market access and connect to growers and clients. We have supply chain belts across several regions and get competitive price for the products.
What current market scenario suggests increase in demand for hydroponic products?
Although leafy vegetables have competitive edge as they can be grown off season also and get good prices, vegetables do not have much fluctuation round the year and can get good prices with good shelf life which can go up to 7 to 10 days. We can also store them if we are unable to sell them on the same day.
What strategies are in place to educate consumers about the benefit of hydroponically grown produce?
Many policies are in place now. eCommerce platform runs good campaigns these days with regard to health, nutritional diet we should have. Social media also promote in many ways how we can improve the diet by having nutritional fruits and vegetables. Hydroponics has a pivotal role here. And the supply chain is very small but get good value. Industries are doing good in terms of campaigning and educating people with regard to hydroponically grown vegetables and fruits which shows a positive trend.
Are there any specific government initiatives or subsidies for hydroponic farmers in your region?
There are several initiatives. People sometimes get sceptical about investing lot of money on hydroponics or controlled environment agriculture. But this is going to be the future soon. Farmers will start following it on a mass level as the climatic patterns have disrupted the supply chains now. We face untimely heavy rains, snow falls, and the government is aware of these calamities that hamper the whole food supply chain. So they have come up with several government schemes and subsidies. We can get subsidies for polyhouses and covering structures but not for all varieties. Central government provides 50% subsidy which is credit linked backend subsidy. We have to take loan to avail this subsidy as it shows we are trying to grow. We have also to search for Agri infra fund, a scheme by government of India wherein we get capital collateral free for Rs. 2 crores for 7 years at a rate of interest of 6%. Here we can avail very good capital benefit from government. This is an online procedure, and we can take help from Bank officials if we need. We should have a minimum of 5 farmers in a group as we can scale it big. Government insists that the project related to precision farming, CEA, or hydroponics can be on a mass level so that it will reduce operational cost. There are individual loans also available for supply chain management, warehousing, cold storage, or improving the whole value chain. Capital is easily available now.
How can small scale farmers access the benefits of market support programs for hydroponics?
We can have 4 or 5 farmers come together, apply for Agri infra fund and we can get good amount of loan with which we can scale up the hydroponics farm and compete better in the market.
Are there established channels or platforms connecting hydroponic farmers with consumers or retailers?
eCommerce platforms are the best sources, but apart from these, there are many B2B players who have come up towards targeting niche marketing. There are many such players who are procuring only hydroponically grown vegetables and supplying to high or premium society. So, we can research about them, reach out to them, and get the connection established.
Can you share success stories of hydroponic farmers who have thrived with market support?
When we established market in Andaman and Nicobar, the clients were sceptical about how to go about it and where to grow. We assisted them with whole supply chain process, went on to help them reach out market players and handhold them in the initial days. They could grasp a good portion of B2C market also. Next, when we established farm in Odisha, who are now catering to high premium society, we helped them in marketing campaigns. They are now running the farms well and working on expansion of the same. Similar is the case in Jammu and Guwahati. There are many more success stories which have gone to show that when hydroponics is done correctly, it will be successful and it will be the future.
What challenges do hydroponics farmers commonly face in terms of market access, and how are they addressed?
The biggest concern is hydroponics should not be treated as easy. I have seen many people assuming that hydroponics since it is automated will get good returns if they just invest money. It is like any other business. We have to put in some initial time, resources, and effort to understand the business fully and run it well. People who have invested time in the initial phases can sustain it. Hydroponics farming faces challenges because people have projected it as easy. But like any other business, it can give good returns if we put in our efforts to take hold of the business to make it sustainable.
Are there certifications or labelling programs that help hydroponic products stand out in the market?
There are private certifications with regard to organic products in India to certify organically grown vegetables, but there is no concrete or reliable one in the Indian market for hydroponic products.
How can farmers participate in collaborative marketing efforts to collectively promote hydroponic produce?
Farmers have to understand the value chain to have an edge. But they depend on APMC very much. We know that APMCs are the worst solutions as they are unreliable. When we want to do the nest generation things in hydroponics, we have to do, take hold of the market, and supply chain and prices. We should not depend on APMC as we will not get good prices. We should know what marketing is, where the profit margin is taken away by others, we have to stop them, go to the market, make farmers group or producers company and try to reach out to hotels, restaurants, and cafes. Food industry always has an edge over the other players.
In regions with well-established market for traditional Agri markets, what strategies are actually introduced to promote hydroponic products?
As an exporter, we have to identify the buyer who is trustworthy and provide good volumes of orders. We have to participate in trade fairs and expos to get good buyers. D2C we have to reach out through social media and make pages very trendy. In B2B, we have to be thorough with the value we provide and how to solve the problems as we need to be trustworthy and reliable to have a sustainable relationship with the buyers.
Anything else the farmers need to take cre of before going for hydroponics?
We should not have any superficial expectations, treat this as any other business to get good returns by putting in efforts, do market research thoroughly, establish connections, and doing some trade initially to know the challenges and how to solve them.
CONTACT: Mr Priyanshu Jain
Founder - Agri Joy Pvt Ltd
Email: info@agrijoy.in
Telephone: 7906482293