Case study on seed production
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1) A youth group in Ambedkar Nagar was organized in 2007 to help members become entrepreneurs. With support from MicroGraam, a 5-member team was formed to purchase, store, and sell seeds. 2) The team took a loan of Rs. 25,000 from MicroGraam to purchase 15 bags of paddy seeds for Rs. 12,000 and 15 bags of groundnut seeds for Rs. 12,000. 3) Storing the seeds for 3-4 months before selling when prices increase is expected to generate a profit of Rs. 16,500 that will be shared among the five members and help increase family incomes in the village.
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- 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.
- 9. The team of collective entrepreneurs