The government supports agriculture by deciding minimum support prices for the major agricultural crops, subsidies and credit schemes. However, there is a lack of required level of investment for the development of marketing, storage and cold storage infrastructure. According to National Bank for Agriculture and Rural Development (NABARD) post harvest losses accounts about 25% to 30% of production in India.
The solution to this problem is advocated through innovation, which is going to change the game for small and emerging businesses related to agriculture. Kudos to Pune Farmers, who not only cut the middleman from the business, but also find a solution to sell their product directly to consumers. This story was recently highlighted by The Economic Times (ET).
A new trend for small and emerging businesses related to agriculture
According to the ET story, Pune is witnessing a new trend where farmers are offering consumers directly with fresh vegetables right at their door step. The idea is to create a self-help group and adopt new technology for payment system, and then approach the end-users directly with their offerings.
A new trend for small and emerging businesses related to agriculture
According to the ET story, Pune is witnessing a new trend where farmers are offering consumers directly with fresh vegetables right at their door step. The idea is to create a self-help group and adopt new technology for payment system, and then approach the end-users directly with their offerings.
The trend in the case of Pune has recorded three tonnes of fresh vegetables being delivered at the door steps of more than 200 families which has encouraged the spirits of these farmers. The orders get placed online and they are processed in the village itself. To relish the farm fresh vegetables, the customer needs to pay a sum of Rs. 2, 000/- online to their site. The minimum size of the order has been fixed at Rs 150 per delivery. This innovate idea has caught instant attention of working couples and elderly people. The trend has emerged as a real delight for those who are willing to pay a premium for farm fresh vegetables.
Online delivery of fruits and vegetables is not a new trend in India but what makes the Pune experiment different is being driven by farmers themselves. It is an ideal condition for those who are willing to start a small-sized business related to farming. Earlier, a hefty amount was retained by middle-man and there was no direct contact between producer and consumers. However, with the advent of e-Commerce now it is easy to sell their product online. Further farmers have made a deal with large housing societies to sell inside their premises once a week. It would enable them to offer discounts as well.
Small sized ventures have a huge potential in organic farming
A budding interest in organic food is an answer to a potential business venture. There is a growing concern towards healthy living, and consumers are very apt to pay for foods involving natural farming. Organic products usually get a premium of 10% to 20%. Organic farming also cut cultivation and input costs by up to 70% due to the use of cheaper, natural products like manure instead of chemicals and fertilizers.
How SMEs can harvest profit out of it
As per the existing laws in India, markets for agricultural product can be set up at the initiative of State Governments alone and there is still no provision for individual farmers. Recently, it has been recommended that ‘Special Markets’ or ‘Special Commodities Markets’ in any market area for specified agricultural commodities can be operated in addition to existing markets. Growers are permitted to apply for the establishment of new markets for agricultural produce in any area. Therefore, in a market area, more than one market can be established by private persons, farmers and consumers. There will be no compulsion on the growers to sell their produce to existing markets only.
Therefore, a small-sized venture is in a unique position to tap this growing market by adopting new technology and approaching directly to the end-user with their potentially better offering.
Small sized ventures have a huge potential in organic farming
A budding interest in organic food is an answer to a potential business venture. There is a growing concern towards healthy living, and consumers are very apt to pay for foods involving natural farming. Organic products usually get a premium of 10% to 20%. Organic farming also cut cultivation and input costs by up to 70% due to the use of cheaper, natural products like manure instead of chemicals and fertilizers.
How SMEs can harvest profit out of it
As per the existing laws in India, markets for agricultural product can be set up at the initiative of State Governments alone and there is still no provision for individual farmers. Recently, it has been recommended that ‘Special Markets’ or ‘Special Commodities Markets’ in any market area for specified agricultural commodities can be operated in addition to existing markets. Growers are permitted to apply for the establishment of new markets for agricultural produce in any area. Therefore, in a market area, more than one market can be established by private persons, farmers and consumers. There will be no compulsion on the growers to sell their produce to existing markets only.
Therefore, a small-sized venture is in a unique position to tap this growing market by adopting new technology and approaching directly to the end-user with their potentially better offering.
i like to know the who already engaged in the same business..
ReplyDeleteor the institute whoi will provide the professional training for it.
thanking you,
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