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Entrepreneurship opportunities in Agriculture
1. Entrepreneurship
opportunities in Agriculture
Dr. J. Diraviam
Senior Scientist and Head, ICAR Krishi Vigyan Kendra
Pulutheri Village, R.T. Malai(PO),Kulithalai(TK), Karur(DT) - 621 313.
Mobile: 9488967675 Email: skvkk1@gmail.com;
j_diraviam@rediffmail.com;
Website: www.skvkk.org FB: Icar KVK Karur
Online Training
2. What is Entrepreneurship
The capacity and willingness to
develop, organize and manage a
business venture along with any of
its risks in order to make a profit.
The most obvious example
of entrepreneurship is the starting
of new businesses.
3. Characteristics of Entrepreneurs
• Successful entrepreneurs are perceived as
engineers of changes, energetic, focused, able
and willing to take control of their lives, to
survive in uncertainty and act based on limited
information;
• They must be persistent and capable to
rebound after failure. The “I can do it” attitude is
important. Those who survive through severe
selection steps of the business startup process
can make it as entrepreneurs.
4. Characteristics of Entrepreneurs
• It is also believed that
“Entrepreneurs are born, not made.”
Genetic factors can be assumed to
play an important role.
• At the same time developmental and
environmental factors are important
as well.
6. Entrepreneurial Competencies - Introduction
• A competence is an underlying
characteristic of a person which led to his
or her effective or superior performance in
a job.
• The term ‘competence’ refers to the
combination of Knowledge, Skills, Motive,
Attitude and Habits. Every role requires
some particular competencies.
7. Entrepreneurial Competencies
• Initiative
• Seeking and Acting on opportunities
• Persistence
• Information seeking
• Concerns for high quality of work
• Commitment to work contract
• Efficiency orientation
• Systematic planning
8. Entrepreneurial Competencies
• Problem solving
• Self confidence
• Persuasion
• Use of influence strategies
• Assertiveness
• Monitoring
• Concern for other`s welfare
9. Need for entrepreneurship in agriculture
• Entrepreneurship can provide an innovative solution to
critical agricultural issues such as:
Low crop productivity: Entrepreneurs can use
precision farming techniques to increase crops
productivity.
High input cost for agriculture: The input costs can be
minimized by incorporating data-driven decision
making and reducing the unnecessary use of input
materials.
Wastage of crops: Agri-Entrepreneurs can support
the government in creating storage facilities and use
information technology to manage the supply chain to
reduce wastage of crops.
10. Need of Agripreneurship Development
• There is a need of entrepreneurship in agriculture for
more productivity and profitability.
• This is the need of the hour as the people are facing
growing unemployment and poverty in rural areas.
• Entrepreneurship in the field of agriculture can
generate wide range of economic benefits such as
increased agri productivity, creation of new business
ventures, new jobs, innovative products and services,
development of rural areas and increased wealth.
• Agripreneur is a dynamic business manager who
performs various agri-based activities using different
resources viz, physical resources, financial resources,
human resources and information, in order to
accomplish a certain goal.
11. Entrepreneurial Environment for Farmers
• Farmers-entrepreneurs operate in a complex but unstable and
dynamic environment.
• They play an important role in producing products and moving
them to the market through the value chain in an integrated
manner to make the whole system work better and to be more
profitable in their business.
• Entrepreneurship is a key factor for the survival of farming in an
ever-changing and increasingly complex global economy.
• Farmers-entrepreneurs see their farms as a business and as a
means of earning profits by taking calculated risks to make their
farms profitable and their businesses grow.
• Becoming more entrepreneurial can be a challenge for small-
scale farmers. They will need help from extension workers and
other institutions to come up at better position as an
agripreneur.
12. Entrepreneurship Dynamics
• To become a successful farmer-entrepreneur,
they must be: technically competent, innovative
and plan ahead to gear up their farm
businesses through the stages of enterprise
development – from establishment and survival
to rapid growth and maturity.
• There are many challenges that these farmers
face such as social barriers, economic barriers,
regulations, access to finance and information,
and their own managerial capacity to cope with
risks and changes and to seize opportunities.
13. Business skills to be learnt by
farmer entrepreneurs
• Meeting the specifications of the product
at a profit;
• Negotiation between the business models
and value chain partners;
• Evaluating the sales, profitability and
growth based on seasons;
• The profitability of the whole farm;
• Generating plans that work for the long
term.
14. Challenges faced by Agri
Entrepreneurs
• Farmers are production oriented - Skill and
knowledge on post harvest technologies
lacking
• Mentoring support
• Resources mobilization – Technical,
financial, institutional
• Institutional framework – FPOs, JLGs
• Scale of production and Marketing
16. Agri-Clinics and Agri-Business Centres Scheme (ACABC)
AGRI-CLINICS AND AGRI-BUSINESS CENTRES
Better Farming by Every Farmer
A Flagship Programme of the Ministry of Agriculture and Farmers Welfare,
Government of India
17. AGRI-CLINICS AND AGRI-BUSINESS
CENTRES SCHEME - OBJECTIVES
To create gainful self-employment opportunities to unemployed
Agricultural Graduates, Agricultural Diploma holders, Intermediate
in Agriculture and Science Graduates with PG in Agri related
subjects.
To support Agriculture development; and
To supplement the efforts of public extension.
18. Agri-Clinics:
Agri-Clinics are envisaged
to provide expert advice and
services to farmers on various
technologies including soil health,
cropping practices, plant
protection, crop insurance, post
harvest technology and clinical
services for animals, feed and
fodder management, prices of
various crops in the market etc.
which would enhance productivity
of crops/animals and ensure
increased income to farmers.
Agri-Business Centres:
Agri-Business Centres are
commercial units of Agri-ventures
established by trained agriculture
professionals and are envisaged
to provide services to farmers on
maintenance, repair and custom
hiring of farm equipment's, sale of
inputs and other services in
agriculture and allied areas
including post harvest
management and market linkages
for income generation and
entrepreneurship development.
19. ELIGIBITY CRITERIA OF THE SCHEME
Graduates in Agriculture and allied subjects from SAUs/ Central Agricultural
Universities/ Universities recognized by ICAR/ UGC.
Degree in agriculture and allied subjects offered by other agencies may also be
considered subject to approval of Department of Agriculture & Cooperation,
Government of India on recommendation of the State Government.
Diploma (with at least 50% marks)/ Post Graduate Diploma holders in
Agriculture and allied subjects from State Agricultural Universities, State
Agriculture and Allied Departments and State Department of Technical
Education.
Diploma in agriculture and allied subjects offered by other agencies may also
be considered subject to approval of Department of Agriculture & Cooperation,
Government of India on recommendation of the State Government.
20. Biological Science Graduates with Post Graduation in agriculture & allied
subjects.
Degree courses recognized by UGC having more than 60 percent of the course
content in agriculture and allied subjects.
Post-graduate Diploma courses with more than 60 percent of the course
content in Agriculture and allied subjects, after B.Sc. with Biological sciences,
from recognized colleges and universities.
Agriculture courses at Intermediate (i.e. plus two) level, with at least 55%
marks.
21. Training Network
MoU with 98 Organizations
1. NGO’s 55
2. State Government Institutes 11
3. State Agriculture Universities 10
4. Krishi Vigyan Kendras [KVK’s] 12
5. SAMETIs/ATMA 04
6. Institute of Co-operative
Managements
03
7. Agribusiness Companies 10
8. ICAR - Institutes 04
9. Other Universities 02
* 114 NITs across India
Training: Period – 45 days
Training module: http://www.agriclinics.net/schemetraining.htm
23. Activity wise Established Agri-ventures
Name of the Agricultural Venture Number %
1 Agri-Clinics and Agri-business Centres 6791 29.03
2 Dairy/Poultry/Piggary/Goatary 6618 28.29
3 Agri Clinics 4133 17.67
4 Veterinary Clinics 903 3.86
5 Farm Machinery Unit 738 3.15
6 Nursery 545 2.33
7 Vermicomposting / Organic manure 513 2.19
8 Fisheries Development 368 1.57
9 Seed Processing and Marketing 351 1.50
10 Vegetable Production and Marketing 298 1.27
11 Value Addition 285 1.22
12 Crop Production 218 0.93
13 Horticulture Clinic 178 0.76
14 Direct Marketing 170 0.73
15 Biofertilizer Production and marketing 120 0.51
16 Cultivation of Medicinal Plants 113 0.48
17 Landscaping and Nursery 113 0.48
18 Mashroom Cultivation 113 0.48
19 Contract Farming 109 0.47
20 Floricultrue 109 0.47
21 Soil Testing Laboratory 103 0.44
22 Apiary 101 0.43
23 Organic Production/ Food Chain 95 0.41
24 Rural Godown 56 0.24
25 Animal Feed Unit 52 0.22
26 Sericulture 52 0.22
27 Pesticides Production and Marketing 47 0.20
28 Tissue Culture Unit 28 0.12
29 Production & Marketing of BioControl Agents 27 0.12
30 Agriculture Journalism 16 0.07
31 Agro-Eco Tourism 15 0.06
32 Fishery clinic 15 0.06
Total 23393
23502
24. Project Cost:
Individual
Projects: Rs.20.00
lakhs
Group Projects:
Rs.100.00 lakhs
(5 member group)
An additional limit
of Rs.5.00 lakhs
for subsidy
purpose is also
provided for
extremely
successful
ventures
Margin Money:
10-15% or as
decided by the
individual Banks
Bank Loans:
Type of Loan -
Composite Term
Loan (fixed cost +
cost for one
operative cycle)- At
least 10% of the
project cost should
be in the form of
capital investment
Security :
• Hypothecation of
assets, mortgage
of lands or third
party guarantee.
• Collateral
Security up to
Rs.5.00 lakhs
loan is waived.
Rate of Interest : As determined by
Bank(Commercial / Private Bank / RRB /
State Co operative Bank).
Repayment Period:
5 -10 years depending upon the project.
Gestation period: Maximum two years as per the
nature of the project.
Composite Subsidy:
Credit Linked, back ended with lock-in period of 3
years.
Subsidy will be released up-front
36% Subsidy on a maximum Project Cost of
Rs.20.00 lakhs (Rs.100.00 lakhs for Group) for
general category and 44% for SC, ST, women, Hilly
States (NE States, J & K, H.P and Uttarakhand)
and other disadvantaged sections.
The benefit of subsidy will be extended maximum
twice to a candidate under the Scheme.
Payment of back-ended subsidy will be linked to
extension services provided by Agripreneur.
Project Activities:
32 Projects mentioned (only illustrative).
Any Project which provide services to the
farmers.
Hand Holding by Nodal Training Institutions:
Up to one year
25. SUPPORT AGENCIES
• National Bank for Agriculture Rural Development
(NABARD)
• ICAR Krishi Vigyan Kendras
• RSETI under Ministry of Rural Development
• Industrial Development Bank of India (IDBI)
• Department of Women and Child Development
(WCD), Ministry of HRD, GOI
• Self Help Groups (SHG)
26. NABARD programmes
• MEDP – for SHGs on Agri and non farm
• LEDP - for SHGs on Agri and non farm –
more intensive programme
Handholding support for 1 year
• Skill training programme
27. RSETI - Courses
Course/Qualification Name Duration (Hours)
Sericulture Entrepreneur 80
Dairy Farming and Vermi Compost Making 80
Commercial Horticulture 104
Sheep Rearing 80
Poultry 80
Papad, Pickle and Masala Powder Entrepreneur 80
Goat Rearing 80
Cultivation of Medicinal and Aromatic Plants 80
Piggery 80
28. RSETI - Courses
Course/Qualification Name Duration
(Hours)
Commercial floriculture 80
Vegetable Nursery Management and Cultivation 80
Bee Keeping 80
Mushroom cultivation 80
Poly House & Shade Net Farming 80
Pissiculture 80
Agricultural Entrepreneur 104
Rubber Tapping & Processing 80
29. Some initiatives taken for Promotion
of Village based Biocontrol units
• Government initiatives:
Ministry of Science and Technology -
Department of Biotechnology,
Ministry of Agriculture – NIPHM
• State Agricultural Universities
• ICAR NBAIR and ICAR Krishi Vigyan
Kendras.
30. ICAR Krishi Vigyan Kendra for Tribals
• ICAR KVK Wayanad, trained tribal group
of 13 girls for generating self employment
to the tribal youth of Nellarchal tribal
colony, Kerala.
• Group was given training for six months’ in
the production of biocontrol agents such
as Trichoderma and Pseudomonas and
were registered as a self help group
(SHG) called 'Sabari'.
32. Non – Government initiatives
• Biovillage promoted by M.S.Swaminathan
Research Foundation.
• Sugar Industry particularly the promotion
of Trichogramma egg parasitoids. The
concept of Agri Service Provider
developed by Sugar Factories have
proved to be a successful business model
for production of bioagents at village level.
33. M. S. Swaminathan Research Foundation
• Imparted training to women SHG at Kannivadi,
Dindigul District on mass production of
Trichogramma
• After one year of initiation, the concept had spread
into other places and the pioneer group members
started training six groups
• Each group ran Trichogramma production as a
micro enterprise through which they reached the
farmers in and around their area and created
awareness about parasitoids and their pest control
pot
36. National Institute of Plant Health Management
• To popularize simple and low cost mass rearing
techniques of biocontrol agents
• Special capacity building programme “On-farm
production of Biocontrol agents to promote
AESA based PHM in conjunction with
Ecological Engineering for pest management”
to Master Trainers.
• The trained officers to disseminate the
techniques among farmers for production of
Biocontrol agents.
38. National Institute of Plant Health Management
• Trichogramma, Goniozus spp., Bracon spp.,
Reduviid bugs, Spiders and Coccinellids,
Entomopathogenic nematodes (EPNs)
• Microbial biopesticides such as Trichoderma
spp., Pseudomonas, Verticilium, Metarrhizium,
Beauveria, Nomuraea, etc.
• To popularize on-farm production techniques of
biological control agents among farmers,
NIPHM is also associating with State
Governments by building capacity of the
extension Officers and providing technical
guidance to implement at village level.
39. Farm based Low cost mass production
technique for Trichoderma - NIPHM
40. Opportunities created by Agri-Entrepreneurship
• In the past few years, some notable startups have come up in
the agriculture sector and are disrupting the way Indian farmers
have been interacting with their farms.
• ‘EM3 Agri’, provides farm services related to land development,
seeding, sowing plant, plant care, and post-harvest services,
thereby maximising profit per unit of land for farmers.
• ‘Crofarm provides farm-to-business venture that uses a
combination of smart logistics solutions to minimise post-
harvest losses and help the farmers in better price discovery for
their produce.
• ‘Gold Farm’ is a farm equipment aggregator, which partners
with local entrepreneurs who can invest in farm equipment.
These farm equipment, in turn, are rented in villages on an
hourly basis. Thus, helping the farmers mechanise farming at
nominal costs.
41. Opportunities created by Agri-
Entrepreneurship
• These agri – ventures have proved that if quality
solutions are provided to the farmers, they are
willing to pay for the services. At present, the
market size of agri-tech ventures is quite small,
and the services are available only in certain
pockets.
• There is a vast scope to scale up the solutions
and increase the reach and benefits of agri-tech
ventures to improve the capability of the Indian
farmers.
42. Direct & Indirect Financial Support
• Nationalized banks
• State finance corporation
• State industrial development corporation
• District industries centers
• Differential rate schemes
• Mudra and Stand up India
• Small Industries Development Bank of India
(SIDBI)
• State Small Industrial Development Corporations
(SSIDCs)
42
43. Role of extension agents in agri
entrepreneur development
• Developing skills and knowledge required
for a successful entrepreneur
• Developing plans
• Analyzing market.
• Working with partners in a value chain
• Building large opportunities for business
44. Business development services by Agencies
• Analyzing the demand and opportunities in the market;
• Mapping the chain of the market;
• Making the decisions that are related to the demand and
production of the product selection;
• Recording the cost of production;
• Undertaking the analysis of the profitability margin;
• Maintaining the records relating to the finance of the
business;
• Evaluating the services related to the expansion of the
business and improves the competition in the market;
• Growing a common vision for investment in the
business;
• Preparing the business plan and investing in the same.
54. Mr. Ramachandra Appari
Green Morning Horticulture Services Private Limited &
Harita Nursery – Agri-Clinics and Agri-Business Centre, Vattinagulapalli,
Rajendranagar (M), Ranga Reddy, T.S
55. Mr. K. Ranga Reddy
Red Gold Farms & Agri-Clinic,
Medak - 502372 (Dist.), T.S.
59. Fish Clinics
Fish Clinics Cuts Wastage & Boost Income
Mrs. A. Akhlamole, Thissur, Kerala
Fish clinic on Pearl spot (Etroplus suratensis), She has her own pond in which Pearl Spots
are reared and 15 tanks with several varieties of ornamental fishes. She is one of the largest
individual producers of the State Fish of Kerala i.e. Pearl spot (Etroplus suratensis).
Serving 650 lakh farmers
Provided jobs for 20 persons
Turnover Rs.50 lakh
Mobile : +91 09287924215
e-mail: akhilamole@gmail.com
60. Conclusion
• Agripreneurship is the need of the hour in India with
great scope through effective management of agri
elements such as soil, seed, water and market needs.
• The youth who can bear the risk and having a quest
for latest knowledge in agriculture sector can prove to
be right agripreneurs.
• It also has a large potential to contribute to the
national income while at the same time providing
direct employment and income to the numerically
larger and vulnerable section of the society.
• Agripreneurship is not only an opportunity, but also a
necessity for improving the production and profitability
in agriculture and allied sector.