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Case study on seed production
1. Case Study for Seed production
Brief about the Seed Production Project
• The farmers are facing bigger problem in
accessing seeds on time.
• As soon as the harvest, the farmers are sell
their agriculture produces in the market so
that can repay the loan availed.
• Availability of quality seeds is one of the core
problems for the small and marginalized
farmers.
2. Brief about the Seed Production Project (contd.)
• Velicham has organized youth group in Ambedkar Nagar
since 2007, with the aim to make the youth group as
entrepreneurs. Velicham supported them through Micro
Graam, Bangalore.
• Under the leadership of Mr. Yogaraj, a five member team
was formed among the youth group, and collectively
purchased paddy and groundnut seeds at the time of
harvest. Then they stored the seeds for 3-4 months.
3. • The loan amount was Rs. 25,000.00
• The loan amount was used to purchase seeds.
• At present they have 15 bags of paddy which
cost Rs. 12,000.00 and 15 bags of groundnut
for Rs. 12,000.00
How much was the loan amount?
4. Has this loan helped?
• Yes. This loan gave confidence to the team of entrepreneurs.
This is a new experience for them to involve in business.
• It also paved way to increase the family income as well as
ensure individual income.
• The loan offered by MicroGraam met the quality seed
requirement on time to the village farmers. Otherwise, the
farmers depend on the market to purchase the seeds which
are of bad quality.
• The farmers not dependent on money lenders.
5. How this loan has helped you to improve
your business?
• Five members team
– Mr. Yogaraj, S/o Pitchaimuthu
– Mr. Rajkumar, S/o Rengaraj
– Mr. Murugesan, S/o Adhi
– Mr. Sakthi, S/o Rathinam
– Mr. Aiyyappan, S/o Rathinam
• This five member team coming together to
involve in a business is itself an achievement.
6. • The stored seeds would be sold out at the right time when the
market price increase.
• With in three months of time the business will give a profit of
Rs. 16,500.
• The seed will meet out the paddy seed requirement for 30 acres
and groundnut seed for 15 acres.
How this loan has helped you to improve your business?
(contd..)
Sl.
No.
Name of the
seed
Quantity
purchased
Cost of the
Seed
Expected
Selling Price
Expected
Profit
(Rs.)
1 Paddy 15 bags. Rs. 800 x 15 =
Rs.12000
Rs. 1000 x 15 =
Rs. 15000
Rs.3000
2 Groundnut 15 bags.. Rs. 900 x 15 =
Rs. 13500
Rs. 1800 x 15 =
Rs. 27000
Rs.13500
Rs.16500
7. Are you planning on taking another loan from
MicroGraam?
• Yes. To establish seed bank and for effective
maintenance of the seed bank, we require,
further loan from MicroGraam to meet the
seed requirement the whole village to cover
at least 100 acres of land.