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Using IT to Solve Agri Crisis : eFarmDirect experience
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Using IT to Solve Agri Crisis : eFarmDirect experience


Presentation made at CII MSME Conclave at Chennai August 23 2012 . …

Presentation made at CII MSME Conclave at Chennai August 23 2012 .

venkat subramanian , founder efarm

Published in Business , Technology
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  • 1. eFarmEnabling FArmers to Reach Markets Using IT to Solve the Agri Crisis Venkata Subramanian , Founder - eFarm Presented at the session : The “As You Go” Magic Wand that makes IT affordable for the micro-enterprise Knowledge Partner for the Session Event Organizer
  • 2. Introduction : The Founders Venkata Subramanian , COO Srivalli , CEO MS (Computer Science), SUNY Albany, MBA (ICFAI), 2000 Newyork , 2003 B.Com Taxation, NMKRV, 1997 B.Arch , IIT Kharagpur , India , 1995 Over 12 years experience (1995-2007) in IT 8 years experience in Sales, Marketing, & industry in roles such as Program Operations. Has run two start-ups and organised management, Portal development for BFSI fund raising for NGOs as part of CSR programs. clients, Outsourcing and Consulting Technology & Marketing and Operations HR Domain IT / Call entre Operaions Call centre Marketing HR Finance ConsultantsIT Dev. & Testing Purchase & Call centre / BPO Interns Team Delivery Team staff 2
  • 3. Currently Better known as …. ‘Hi-Tech Subziwallahs’ of Chennai Can privatizing agriculture solve marketing problems? Farmer’s Notebook , M.J. PRABU A network of collection centres and distribution centre in Chennai and surrounding districts, procuring daily from over 2500 farmers and supplying to leading retail outlets,hotels, caterers and restaurants in the city.Most PromisingStartup 2011 3
  • 4. What does a ‘Farmer’ got to do in a‘MSME’ Conference ? Farmer as an entrepreneur
  • 5. Villagers are ‘illiterate’ .How can they understand hi-tech? Mobile phone Social Networking : urban v/s rural Education v/s Intelligence
  • 6. Farmers are poor and used to ‘freebies’.They cannot afford to ‘buy’ ? Land cost Mobile phone + top upHow we counter ‘freebie’ argument
  • 7. Pain areas | The Agri Supply Chain Current State : Too Many Steps , Too Little Value Addition Harvesting of • Unorganized , unregulated Terminal markets to Vegetables , unprofessional & unprofitable neighborhood wholesalers •A Middlemen’ dominated market 1 •Adhoc /Arbitrary Decisions on quality & price 5 Regional mandi to Wholesalers to Retailers 4 Terminal markets near A local mandi large cities auctioning 2 Local to Regional mandis for Auction 6Loss in transit 40% Price hike Retailers to Dining Table 3 End to end > 400% 7
  • 8. So many solutions , but why still a crisis ? “Blind men and the elephant” syndrome in agri R&D Without FDI in Retail reliable Increase yield and LIVE dataContract anyfarming Export market agri intervention Or agri-business will be A Cold chain Subsidies, L failure GM foods oans, grant 8 s
  • 9. Lack of Data| No visibility to supply or demand Reality Check • No accurate , dynamic data on supply • No market research on customer demand • No data = Wild guesses ?
  • 10. “Desi” Problems need ‘Jugaadu’ solutions
  • 11. What does Farmer ‘really’ need?Key problems for farmer Suppliers Transporters1) Limited choice of buyers2) Lack of Labour3) Rising Input Costs of agro-supplies Buyers Labour4) Rising Transport Costs5) Unviable market prices All other Industries use Web portal | Call centre| SMS ICT tools and Software applications to manage operations Whereas, efarmDirect is a Farmers have not been B2B online platform which uses IT enabled and are cut simple ICT tools to off from the ‘new’ CONNECT farmers with all the agri world supply chain stakeholders to build a nationwide farmer’s marketing portal 11
  • 13. How Does It Work ? 1.Collect Details are in Farmers efarmdirect website Information •Registration process •Video/Presentation 7.Expand to 2.Collect new locations Buyers Information Phase 1 Phase 2 Phase 3 3.Setup Rural Call6.Labour centres Dynamic updates through mobile/sms Buyer-Seller matchmaking 5.Transporters 4. Register Agri input suppliers / dealers 13
  • 14. How to Access the eFarmDirect Platform ? Human-Technology Interfaces eFarmDirect Platform Voice enabled Human- Computer Franchisee / Interface Call centre / Web portal / Sales person , SMS Rural BPO (IVRS / Web 2 Mobile devices Human assisted voice / Natural language processing)Expected Usage pattern : Sales person/Franchisee ( 25% ) , Local language Callcentre / Rural BPO (45%) , IVRS / Voice driven self driven – (10%) ,SMS – 15%,Web / Smart phones < 5%Why ? -Most people are ‘off the web’ as in remote areas , Primary users not computer savvy | |Technology development will focus on enhancing expected usage/behaviours through Strictly Confidential | Materials may be 14any interface THEY choose ,and subject to copyright | Do notthem ! NOT force ICT on circulate
  • 15. Revenue Model Farmer Buyer Input Labour Transport Notes Supplier erRegistration 50/- 100/- 200/- Rs 10/- 100/- ONE TIME,& Activation LIFETIME VALIDITYUsage fees ANNUALIndividual 600/- p.a 1500/- p.a 5000 p.a 120 p.a 1500 p.auserMonthly 60/- pm 150 p.m 500 p.m 15 p.m 150 p.m To encourage‘top-up’ small users tooption/fee signupCorporate 6000/- 12000 p.a 18000 p.a 1000 p.a 15000 p.a Multi/Large unit p.a users/chains/NG Os/Federations
  • 16. DATA COLLECTION - FARMER Production data • Produce name, variety • Grade • Typical yield at harvest • Harvest cycles • Cost price at farm gate • Organic ? Certifications ? Farmer informationHow data is collected ? • Name • Address•At farmer mela’s and • Contact numberexhibitions • Preferred mode of payment•Through partners like NGOs, • Bank / Post office detailsKVKs, Agri institutions, rural • Photobanks and MFIs • Attestation•Through franchisees Other information • Land type/irrigation type • Banking information 16
  • 17. Basic Buyer-Seller Search and FeaturesSearch byproduce, availability, quantity,price Demand / Supply projections for future planningFarmer/buyer Map view fordetails with locatingcontact info farmers by area 17
  • 18. Advanced Features Rating and review mechanism farmers and buyers can provide feedback which builds transparency andAudio Visuals Marketing identifies ‘good’Farmers can add performersaudio/videos/picturesabout their produce /products to showcaseuniqueness GROUP view map small farmers to respective SHGs, Federations and Institution – enables ‘aggregate’ of quantities to meet larger demands as a ‘combined entity’ 18
  • 19. Value proposition | Connecting the Dots Cleaning / Packing QualityInspection/ Grading Routing Every stakeholder is alternately a Long haul buyer or seller of agro goods, linked Transportation together by a common system. Thus : Develop Online supply chain Rural Produce Collection Centres Small retailers Local vendors Technology backbone with offline distribution mechanisms Farmers Create a network of farmers, Urban area intermediaries, logistics providers, Distribution centre Local Distribution distributors and retailers Provide common support services like marketing , training , Compost/Manure from waste Food Processing units technology and agri business consulting Bulk buyers (Hotels / Caterers / Retailers) Exports ‘Organize’ the ‘un-organized’ rural eFarm Common Services to urban supply chain Planning &Coordination Research Call centre / Communication Technology Training & Support Manage the network to ensure sustainability across the chain
  • 20. Livelihood Generation and Social Impact • Creating Agri entrepreneurs in Rural Areas • Rural youth/ Women are trained as local representatives for data collection/updation • Revenue from commissions and value added services • Providing Employment for Disabled and Under : priveleged • Call centres/BPOs operated by differently abled – visually challenged , speech/hearing impaired • Job opportunities for those tapping unconventional talent pool of India • Reverse migration to villages • Create labour pools of semi-skilled labourers for farm work who are available ‘on-call’ • Create central equipment leasing model so that farmers can ‘hire-an- equipment and operator’ to reduce equipment costs 20
  • 21. Next Training Session Venkata Subramanian Sep 1st & 2nd Founder & MD /COO (M) 98847 61354 Srivalli Krishnan Co-Founder, Director /CEO (M) 7418844275 •Company website : • •Farmers Portal : • 21