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Essay on Agripreneurship


Essay Contents:

  1. Essay on the Introduction to Agripreneurship (Agri-Entrepreneurship)
  2. Essay on the Possible Areas of Agripreneurial Development
  3. Essay on Agripreneurship Promotion and Development
  4. Essay on the Synergy for Integrated Development of Agripreneurship
  5. Essay on the UNDP’S Entrepreneurial Promotion Initiatives in Uttaranchal

Essay # 1. Introduction to Agripreneurship (Agri-Entrepreneurship):

The people involved in agriculture are slowly realizing that they cannot afford to look at the government for each and every thing. Self-reliance is the key. Besides, with the changing global agricultural scene in light of WTO round of talks, over-dependence on traditional format of farming and on traditional crops will not be enough.

Entrepreneurship in agriculture sector or agripreneurship is the order of the day. There are tremendous opportunities in the agriculture and allied sector for promotion of agripreneurship. The allied sectors like sericulture, dairy farming, bee-keeping, mushroom cultiva­tion, fisheries, etc., have a lot of potential for agripreneurial development. Horticulture, which encompasses olericulture, pomology and floriculture in itself, provides lots of scope for entrepreneurial ventures.

Besides, the farmers should also identify the related cottage industries like tomato sauce and squash making units, fruit jam making units, mentha oil making units, jaggery units, etc. This will lead to regional as well as individual growth. Such entre­preneurial ventures can increase the disposable income of the farmers largely and can make them more financially independent.

The following can be prospective agripreneurs:

i. Progressive farmers.

ii. Unemployed agriculture graduates.

iii. Retired persons settled in their native regions.

iv. Women cooperatives.

v. Self-help groups.


Essay # 2. Possible Areas of Agripreneurial Development:

Contrary to popular belief, there are large numbers of areas of agripreneurial development. Some of the possible areas where agripreneurship can be undertaken are as follows:

1. Herbal Processing Unit:

It involves setting-up of mentha oil extraction units, herbal products manufacturing like neem soaps, oils, etc.

2. Honey Agribusiness:

Bee-keeping and honey production provides a vast unexplored opportunity to the budding entrepreneurs. Honey extraction units like in Jeolikote, Nainital are a model example.

3. Plant Clinics:

Diagnosis and effective treatment of crop pests, diseases, microbial attacks and weeds is a major problem faced by farmers. Agriculture graduates can position themselves as plant doctors and set-up plant clinics.

4. Insurance:

Government is of-late rolling-out crop insurance schemes for the farmers. Possibility exists to facilitate such policies through enterprising agents.

5. Mushroom Cultivation:

Mushroom cultivation and marketing have a lot of potential and scope. Although the consumption pattern by large is still not developed to that extent, however, that’s what needs to be done.

6. Landscaping and Nursery:

There has been a steady growth among the people in general regarding the green issues and consecutively a desire to make their surroundings greener. However, there is still a lot of gap between the demand and the supply especially with the aspect of accessibility. Nursery business provides an opportunity to many for filling-up this gap. Corporate and commercial landscaping sector is also growing and creative people can do wonders in it.

7. Agribusiness Centres:

Agri-trading centres, commercial agri-hubs, etc., are some of the prospective entrepreneurial areas to be tapped on a larger scale.

8. Food Processing:

Food processing industry in India offers on palate tremendous scope for expansion. Small to medium level entrepreneurs can set-up units like potato chips plant, finger-chips plant, tomato sauce plant, etc.

9. Herbal-Based Mineral Water:

Herbal is the word in vogue today. Thanks to the relentless campaign against chemical hazards. The discovery of higher degree of pesticides in drinks and some other similar incidents have reinforced the view to a large extent that herbal is safe. Moreover, when it comes to water herbally treated mineral water will definitely have many takers. However, the need is to have such units, which is only possible if budding entrepreneurs embrace the idea.

10. Micro-Irrigation Systems:

Manufacturing and trading of micro-irrigation systems is possible on small-scale too and hence vast opportunities.

11. Agro-Eco Tourism:

Development of ornamental gardens, forest areas and agro-expos can facilitate the agro-eco tourism.

12. Animal Feed Unit:

Animal feed is something, which has still a huge demand-supply imbalance more due to the unavailability of cheap animal feed. These units are set-up at a small scale; as it has also an existing demand.

13. Bio-Fertilizer Production and Marketing:

Bio-fertilizer production and marketing can be taken-up very easily with minimal investments.

14. Clearing and Forwarding Agency:

Clearing and forwarding agents are an important link in marketing of agriculture goods. Enterprising people can become clearing and forwarding agents, distributors, etc.

15. Contract Farming:

Farming for landless people is not impossible. Agriculture graduates desirous of applying their learning into practical can opt for contract farming by taking farms land on lease.

16. Crop Protection Centre:

Crop protection is a big issue in India especially due to the lack of proper initiatives from the government. Crop protection centres offering crop solutions under one roof can be a valid option.

17. Cultivation of Medicinal Plants:

Cultivation of medicinal plants offers a good entrepreneurial opportunity for the people. The reason behind has been the growing fad of herbal medicines and the bent of the pharmaceutical companies towards manufacturing such medicines. For this, they will require raw material in the form of medicinal plants products. Such growers can fulfill this demand.

18. Cyber Extension:

ITC’s e-chaupal has open floodgates in the sector of rural internet extension. Cyber presence in rural areas is almost negligible. However, contrary to the popular belief the interest and need can be generated among the farmers regarding the use on internet in knowing soil conditions, weather forecast, crop protection tips, etc. Cyber extension with a little bit of rural customized approach is definitely a good entrepreneurial option.

19. Dairy:

Dr. Kurien showed through Anand Milk Union Limited that how lakhs of unorganized milk women can be converted into successful entrepreneurs. Dairy if taken-up in a more organized manner with effective local branding and with genuine quality assurance can generate a lot of income. Veterinary graduates can show path.

20. Direct Marketing/Retail Marketing:

Marketing of agriculture goods provides a vast arena for entrepreneurship in India.

21. Farm Machinery Unit:

There is a serious need for customized farm machinery equipments. For instance in hills, the traditional farm machineries do not work because of the terrain. Here we need small, handy and sturdy farm machinery and equipments. Such units can be set-up by innovative agriculture engineering graduates.

22. Fisheries Development:

Fisheries provide good opportunities in both the domestic as well as the export sector. Entrepreneurial efforts in this direction can be highly useful.

23. Floriculture Marketing:

Floriculture is all set to become the next big thing in India. The growth in this sector will be phenomenal, if the efforts carry on as they have started now. Floriculture marketing offers huge opportunity for entrepreneurial explorations. Florist shops, wholesale trading, and electronic retailing and so on; the possibilities are unlimited.

There have been many examples where entrepreneurial efforts in floriculture marketing have brought wonderful results. One such example is Ferns ‘n’ Petals. Ferns ‘n’ Petals started as small florist shop in Greater Kailash area of New Delhi. With its entrepreneurial efforts and effective branding strategy, it went on to become the first branded online chain of corporate and marriage floral decorators.

Its presence on internet made it even more versatile. Today it holds about 10% share in India’s total floriculture trade, a phenomenal achievement, considering the journey from an ordinary florist to a big player at national level. Recently in an International Floriculture Conference held at Bangalore an entrepreneur demonstrated his online flower-retailing portal named Phoolwal(dot)com.

24. Organic Production/Food Chain:

Food processing industry is rolling big bucks in India already. Organic food is all set to come and take over the market like a whirlwind. The pioneers will be the biggest gainers. Organic food in very simple terms will be naturally or organically processed foodstuffs. This is very much a part of our ethnic culture. So making entrepreneurial forays in these fields will require explorations at local level.

25. Poultry:

Egg and meat consumption have shown a steady rise over the years. This provides a very good opportunity for the budding entrepreneurs to take up poultry business. Poultry farming provides reasonable diversification.

Some Other Agri-Entrepreneurial (Agripreneurial) Areas:

i. Pesticides production and marketing,

ii. Post-harvest management,

iii. Research and development,

iv. Seed processing and agribusiness,

v. Soil testing laboratory,

vi. Thermo foam tray production,

vii. Tissue culture unit,

viii. Vegetable production and marketing,

ix. Vermicomposting,

x. Veterinary clinics, and

xi. Pickle, papad units.


Essay # 3. Agripreneurship Promotion and Development:

Of late, the significance of agripreneurship is being realized more and more. This has seen efforts from the government as well as from the NGOs for the promotion and development of the same. The following data showing the state-wise success stories of the agripreneurs facilitated by the agriclinics and agribusiness centre schemes is in itself a testimony of the new found focus (Table 7.1).

Indian government and its allied agencies have come out with a range of promotional and developmental schemes for entrepreneurial, marketing and export growth with an objective to mobilize the people to engage more and more in entrepreneurship.

Some of the schemed are as follows:

I. Schemes of National Horticulture Board (NHB):

National Horticulture Board contribution has been multi-dimensional, supporting the farmers and entrepreneur to face the challenge of the globalized markets with improved production, post-harvest management and value addition. Committed to the ‘golden revolution’ NHB has formulated broad-based entrepreneur-driven schemes to facilitate integrated development of the horticulture sector.

Some of the NHB schemes, pattern assistance, etc., are as follows:

Development of Commercial Horticulture through Production and Post-Harvest Management:

The components are:

Production Related:

It includes high quality commercial horticulture crops, indigenous crops, aromatic plants, seed and nursery, biotechnology, tissue culture, bio-pesticides, organic foods, establishment of horticultural health clinics, consultancy services, bee-keeping.

Primary Processing Related:

It includes grading/washing/sorting/drying/packing centres, pre-cooling units, refrigerated van containers, special transport vehicles, retail outlets, auction platform, ripening curing chamber, market yard/ropeways, radiation unit/dehydration unit, vapour heat treatment unit, primary processing of products, horticulture ancillary industry and crates/cartons/ aseptic packaging and nets.

The pattern of assistance is back-ended capital investment subsidy not exceeding 20% of the project cost with maximum limit of Rs.25 lakhs per project (Rs.30 lakh for north-east/tribal areas) for production, post-harvest management and primary processing of the horticulture produce. Project must be submitted in prescribed format to the NHB state office.

Capital Investment Subsidy for Construction/Modernization/Expansion of Cold Storage and Storage for Horticulture Produce:

Some other schemes of NUB are grouped under the following—technology-development and transfer market information service for horticulture crops and horticulture promotion service. In almost all these categories 100% assistance is provided. The eligible organizations are NGOs, association of growers, individuals, partnership/proprietary firms, companies, corporations, agricultural produce committees, agro-industry corporations, etc.

II. Agricultural and Processed Food Products Export Development Authority (APEDA):

APEDA set-up by the ministry of commerce and industry, government of India, is an endeavour to augment agro-exports and provides financial assistance to the exporters under various schemes for horticulture and general agriculture.

The various schemes of APEDA can be divided under 4 categories:

1. Scheme for market development.

2. Scheme for infrastructure development.

3. Scheme for quality development.

4. Scheme for research and development.

1. Schemes for Market Development:

(A) Packaging Development:

(i) Activity for development of packaging standards and design.

Sales of assistance ― APEDAs internal scheme for development work through involvement of institutions/organization in India and abroad with the cost sharing with exporters and/or organizations involved in the export promotion. Maximum amount in case of sharing with exporters/organization is Rs. 5 lakh or 50% of the cost of development whichever is less or 100% in case of APEDA.

(ii) Assistance to exporters for the use of packaging material as per standards and specifications developed or adopted by APEDA.

Sales of assistance ― 30% subject to ceiling of Rs. 1.50 lakh per beneficiary.

(iii) Assistance to exporters, producers, growers, service providers, cooperative organizations, etc., for purchase of “intermediate packaging material” for domestic transportation of produce.

Sales of assistance ― 50% of the cost of the material subject to ceiling of Rs. 5 lakh.

Feasibility Studies, Surveys, Consultancy and Database Up-Gradation:

(i) Development and dissemination of market information.  

Sales of assistance ― 100% to be implemented by APEDA.

(ii) Assistance for conducting feasibility surveys and studies to exporters.

Sales of assistance ― 50% of the total cost subject to ceiling of Rs. 2 lakh per beneficiary.

(iii) Assistance for conducting feasibility surveys and studies to semi-government and PSUs.  

Sales of assistance ― 50% of the project cost subject to a ceiling of Rs. 10 lakh per beneficiary.

Export Promotion and Market Development:

(i) Supply of materials, samples, development of websites, events sponsored by APEDA.

Sales of assistance ― 100% to be implemented by APEDA.

(ii) Preparation of publicity and promotional material for APEDA.   

Sales of assistance ― 100% to be implemented by APEDA.

(iii) Brand publicity through ads Rs. 1 lakh per beneficiary.   

Sales of assistance ― 40% of the cost subject to a ceiling of Rs. 1 lakh per beneficiary.

(iv) Export promotional activities.  

Sales of assistance ― 100% of the cost.

2. Schemes for Infrastructure Development:

Part-I:

(i) Establishment of common infrastructural facilities by APEDA.

Sales of assistance ― 100% grant in aid.

Part-II:   

(A) Assistance for purchase of specialized transport units. 

Sales of assistance ― 25% of the cost subject to a ceiling of Rs.2.5 lakh per beneficiary.

(B) Assistance to exporter’s producers, growers, cooperative organizations and federations for horticulture and floriculture sector.   

(i) Mechanization of harvest operation.

Sales of assistance ― 25% of the cost subject to a ceiling of Rs.5 lakh per beneficiary.

(ii) Setting-up of sheds for storage, grading, etc.   

Sales of assistance ― 25% of the cost of equipment subject to a ceiling of Rs.5 lakh per beneficiary.

(iii) Setting-up of mechanized handling facilities.   

Sales of assistance ― 25% of the cost of equipment subject to a ceiling of Rs.10 lakh per beneficiary.

(iv) Setting-up of pre-cooling facilities.

Sales of assistance ― 25% of the cost of equipment subject to a ceiling of Rs.10 lakh per beneficiary.

(v) Providing facilities for pre-shipment treatment.

Sales of assistance ― 25% of the cost of equipment subject to a ceiling of Rs.10 lakh per beneficiary.

(vi) Setting-up of integrated post-harvest system.

Sales of assistance ― 25% of the cost subject to a ceiling of Rs.25 lakh per beneficiary.

(vii) Setting-up of vapor heat treatment, electronic beam processing or radiation facilities.

Sales of assistance ― 50% of the cost subject to a ceiling of Rs.25 lakh per beneficiary.

(viii) Assistance for setting-up of environment control system.

Sales of assistance ― 25% of the cost subject to a ceiling of Rs.25 lakh per beneficiary.

(ix) Setting-up of specialized storage facilities.

Sales of assistance ― 25% of the cost subject to a ceiling of Rs.10 lakh per beneficiary.

3. Schemes for Quality Development:

(i) Assistance to exporters, producers, trade associations, public institutions, etc. for setting, up/strengthening laboratories.

Sales of assistance ― 50% of the cost subject to a ceiling of Rs.5 lakh per beneficiary.

(ii) Assistance to exporters and producers for installing quality management, quality assurance and quality control system.

Sales of assistance ― 50% of the cost subject to a ceiling of Rs.2 lakh per beneficiary for each system.

(iii) Activities related to standardization and quality control.

Sales of assistance ― 100% internal scheme of APEDA.

(iv) Up-gradation and reorganization of labs for export testing.

Sales of assistance ― For up-gradation up to 50% of cost for private labs and up to 100% of the cost for central/state govt., and university laboratories to a maximum of 50 lakhs.

(v) a. Samples which involve testing for pesticide and heavy metals. 

Sales of assistance ― 50% of cost of or Rs.5,000 per sample whichever is lower. 

b. Samples which involve testing for antibiotics, hormones, etc.

Sales of assistance ― 50% of cost of or Rs.10,000 per sample whichever is lower.

Organizational Building and HRD:

(i) Assistance for up gradation of technical and managerial personnel.

Sales of assistance ― 50% of the cost for approved training programme subject to Rs.50,000 per beneficiary.

(ii) Assistance for organizing seminars/group activities including study tour within the country.

Sales of assistance ― 100% of organized by APEDA 50% of the cost of seminar workshop, etc. subject to a ceiling of Rs.1 lakh for national seminar and Rs.2 lakh for international seminars.

(iii) Seminars organized by APEDA.

Sales of assistance ― 100% if organized by APEDA.

(iv) Assistance programme for study tour sponsored or organized by APEDA abroad.

Sales of assistance ― 50% of the total cost of travel and distribution of study material.

4. Scheme for Research and Development:

(i) Assistance to support research development for export efforts through R&D organizations in govt., sector.

Sales of assistance ― 100% APEDA’s internal scheme.

(ii) Assistance to support relevant research and development for export enhancement trough R&D organizations in co-operative/private sector.

Sales of assistance ― Up to 50% of the total cost of the project subject to a ceiling of Rs.10 lakhs.


Essay # 4. Synergy for Integrated Development of Agripreneurship:

The efforts of the central government and its allied agencies will have synergistic impact when it has the co-operation of:

(a) State Governments,

(b) Mandi Parishads,

(c) Farmer’s/Grower’s Associations, and

(d) Private Companies.

Some of the examples discussed below will showcase the integrated efforts required at a larger level:

I. Example of State Government’s Efforts:

Karnataka enjoys a prominent position on the horticulture map of India. Horticulture has become an important land-based activity in the state during the last two decades. It is perhaps the only state in India, which has a minister for horticulture. At present, the area under horticulture crops in Karnataka is about 17.9 lakh ha, with annual production of about 128 lakh tonnes.

Thrust Areas:

1. Production and distribution of quality planting materials including tissue culture.

2. Disseminating advanced horticultural technology.

3. Organizing credit support to growers to grow more horticultural crops.

4. Organizing marketing, processing and export facilities for horticulture produce.

II. Example of Mandi Parishad’s Efforts:

Uttar Pradesh Krishi Utpadan Mandi Adhiniyam was enacted in 1964 to regulate and organize the marketing of agriculture produce with an objective to provide a level playing field for the traders and fair remunerative price to the farmers along with availability of quality produce to the consumers. Mandi Parishad’s assets and reserves are Rs.42.87 crores and Rs.159.84 crores, respectively. The Mandi Parishad has embarked upon a modernization drive with prime thrust on horticultural development.

Some of the steps planned are:

i. Computerization and networking of mandis, divisional offices and headquarter by the year 2007.

ii. To provide quality agri-inputs to farmers, Krishak Sewa Kendras have been established in 4 mandis on a pilot basis.

iii. Proposal for commissioning of specialized mandis like a modern fruit and vegetable market in Lucknow (Apna Bazar) and flower auction centre at Noida.

iv. Establishment of cold chain systems.

III. Example of Farmer/Grower Association’s Efforts:

South India Floriculture Association was formed in 1995 as Cut Flowers Growers Association and it started with 20 hectares by 7 members. Today it represents over 38 growers comprising an area of over 150 ha. It has established export markets in Europe, Japan, Australia, Singapore, Middle-east, New Zealand and Malaysia.

Achievements:

1. Instrumental in establishment of cold storage facilities by APEDA at Bangalore airport.

2. Establishment of adequate and reliable air freight transport facilities.

3. Partnered with APEDA and government of Karnataka in setting-up of International Flower Auction, Bangalore (IFAB) of International standards.

IV. Example of Private Company’s Efforts:

In this we take the example of a German company to be treated as a role model for Indian companies of how investment in horticulture can benefit them as well as bring sustainable development in the rural areas. NBV UGA is German’s leading sales organization for cut flowers, potted plants, fruits and vegetables.

The total turnover in 2001 amounted to over 602 million Euros. More than 3000 German, European and International growers supply the NBV UGA and guarantee a comprehensive offer of flowers, plants, fruits and vegetables to the auctions, the mediation services, and to the sales and collection markets. Its customers include more than 25000 wholesalers and retailers. NBV UGA has over 1200 employees.


Essay # 5. UNDP’S Entrepreneurial Promotion Initiatives in Uttaranchal:

UNDP is the UN’s largest source of grant assistance for development. UNDP assists governments and civil society organizations in developing economic and social policies to address the causes of poverty. It works for the full realization of the right to development—a paradigm that places people at the centre of all development activities.

The thrust of UNDP interventions in the state is aimed sustainable human development; on all critical issues in areas such as employment in the small scale and informal sector, women in agriculture, technology for urban renewal and community development. UNDP support programmes are aimed at capacity development for strengthening decentralisation, sustainable livelihoods, empowerment of women, and the safeguarding and regeneration of natural resources.

Some of its entrepreneurial promotion initiatives in Uttaranchal are:

1. Setting-up of cane and bamboo technology centre.

2. Sector based interventions in village and small industries—Khadi and Village Industries Commission (KVIC).

3. Mission for application of technology in urban renewal and engineering (MATURE).

4. Women in agriculture.

5. Small grants programme.

6. Community development.

Agripreneurship promises a bright future for the development of the rural sector and empowerment of the people at the grass root level. However, dissemination of the various schemes for entrepreneurial, marketing and export promotion among the rural population will be crucial. This will only be possible by such synergistic endeavours, which can catalyze the Revolution in the truest sense.


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