To discuss the concept and importance of Agrientrepreneurship. To discuss the potential areas and opportunities for Agrientrepreneurship. To discuss the various forms of Agrientrepreneurship. To discuss the problems of and future strategies for promoting Agrientrepreneurship.

1. MASTER SEMINAR ON 2013-14
PROBLEMS AND PROSPECTS OF AGRI-
ENTREPRENEURSHIP IN INDIA

2. • Objectives
• Concept of entrepreneurship
• Qualities of entrepreneur
• Definition of Agri entrepreneurship
• Entrepreneur in agriculture
• Functions of Agri entrepreneurship
• Importance of Agri entrepreneurship
• Why Agri entrepreneurship
• Opportunities for Agri entrepreneurship
• Successful story
• Approaches to Agri-Entrepreneurship
• Types of Agri entrepreneurship
• Most potential sector in India
• Problems in Agri entrepreneur
• Remedies to solve these problems
• Conclusion
• References
Flow of Seminar
2

3. OBJECTIVES
 To discuss the concept and importance of Agrientrepreneurship.
 To discuss the potential areas and opportunities for
Agrientrepreneurship.
 To discuss the various forms of Agrientrepreneurship.
 To discuss the problems of and future strategies for promoting
Agrientrepreneurship.
3

4. Entrepreneur
4
• An entrepreneur is defined as “person in effective
control of commercial undertaking; one who undertakes
a business or an enterprise”.
• Entrepreneur is an innovative person who maximizes his
profits by following new strategies or venturing into
new products or services.

5. Entrepreneurship is the act of being an entrepreneur, who starts
any economic activity for being self-employed.
Entrepreneurship is an attempt to create value through recognition
of business opportunity. It is basically communicative and
management functions to mobilize financial and material resources.
The entrepreneurial activity is governed by varying combination of
socio-economic, psychological, cultural and other factors:
Caste/religion, Family background, Level of education, perception,
Occupational background, Migratory character, Entry into
entrepreneurship, Nature of enterprise, Investment capacity and
Ambition.
Entrepreneurship is a creative activity.
Concept of Entrepreneurship
5

6. • Organizer: Entrepreneur has to set up new business
enterprise for which he has to organize the resources for
production.
• Risk bearer: Entrepreneur has to take risk in introducing
new system of work.
• Coordinator: Entrepreneur has to coordinate the activities
of production, marketing and sales of a product.
Qualities Of Entrepreneur
6

7. • Leader: Being head he has to provide leadership to the
enterprise.
• Opportunist: In addition to creating opportunity one has to
utilize the existing opportunities for the welfare of the
enterprise.
• Decision making power: He must have decision making
power in production ,marketing and financial management
activities.
Qualities Of Entrepreneur ( Conti..)
7

8. • Good listener: Listening helps to make the customers
delighted.
• Far see problems: Far seeing problems will help to manage
stress, avoiding internal and external breakdown etc.
• Take up responsibility: Entrepreneur must take up
responsibility and stand up to face any problems and
conflicts.
Qualities Of Entrepreneur ( Conti..)
8

9. • In the absence of local entrepreneurship, the
opportunities in agriculture are high jacked by
outsiders, particularly the urban businessmen and
traders, leading to misuse and lack of employment for
the farmers.
• Considering the growing unemployment in rural areas
and slow growth of the agricultural sector, it is
necessary to tap the opportunities for promoting
entrepreneurship in agriculture, which in turn can
address the present problems related to agricultural
production and profitability.
Entrepreneurship in Agriculture
9

10. Agri. entrepreneurship
“Entrepreneurship which ensures value addition to Agri resources in rural areas,
engaging largely rural human resources. Finished products are produced in rural
areas out of resources obtained in rural areas by largely rural people.”
An “agricultural entrepreneur” is an individual or group with the right to use or
exploit the land or other related elements required to carry out agricultural, forestry
or mixed activities. (Suarez,1972)
In other words Agri entrepreneur is one “He, who is in the business of
agriculture,”
10

11. • Undertakes a farming scheme
• Assumes risk
• Earns profits
• Identifies Agriculture business and related opportunities to
start business either as a farmer or a distributor.
Functions of Agri. Entrepreneurship
Source: Agricultural Entrepreneurship (Compiled Materials) PUP Pulian Campus
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12. Importance of Agri entrepreneurship
 Reduction of Poverty and Unemployment
 Labour intensive
 Agri industrialization leads to development of rural areas
 Balanced Country Development
 Utilizing Locally Available Resources
 Capital Creation
 Improvement in Per Capita Income
12

13. Why Agri Entrepreneurship
13
1. Agri industries being labor intensive, have high potential
in employment generation.
2. Agri industries have high potential for income generation
in rural areas.
3. These industries inspire dispersal of economic activities
in the rural areas and, thus, promote balanced regional
development.
4. Agri. entrepreneurship build up village equality.

14. Agri-Entrepreneurs Example
• Lawn Maintenance Service
14

15. Agri-Entrepreneurs Example
• Custom Crop Harvesting
15

16. Agri-Entrepreneurs Example
• Tractor and Farm Equipment Detailing
16

17. Agri-Entrepreneurs Example
• Operating a Roadside Marketing Selling
Produce
17

18. • 563 Million people engaged in Agriculture.
• 52% of total land is cultivable as against 11% in the world.
• All 15 major climates of the world, snow bound Himalayas to hot humid
southern peninsula; Thar Desert to heavy rain areas all exist in India. In the
live stock sector, India has 16% of cattle, 57% of buffalo, 17% of goats and
5 % of sheep population of the world.
• In terms of the real value added, the Indian agriculture sector ranks third
after China and the United States.
• The share of agriculture in the total value added to the economy, at around
25 percent is still quite high. This implies that agriculture is likely to
remain a priority, both for policy makers as well as businesses.
Opportunities for Agri-Entrepreneurship
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Source: Indian Society of Agribusiness Professionals, 2013

19. Agri & Food
Inputs
Seeds
Fertilizers
Agro-chemicals
Agri-biotech
Irrigation
Farm
Machinery
Poultry Feed &
Equipment
Dairy Feed &
Equip
Aqua & Fishery
Feed &
Equipment
Food
Packaging
Food
Ingredients
Prodn. and
Warehousing
Food
Corporation of
India
State
Warehousing
Corporation
Central
Warehousing
Corporation
Pvt.
Warehouses
Cold Storages
Floriculture
Greenhouses
Logistics &
Distrbn.
Ports
Reefer
Transport
Caterers
Trading
Edible Oil
Grain
Spices
Fruits & Veg
Meat/ aqua
Commodity
Exchanges
Processing
Primary Process
Grain Milling
Edible Oil
Dairy
Fruits & Veg
Sugar
High Value
Processing
Confectionery
Bakery
Beverages
Dairy
Meat & Poultry
Marine &
Fishery
Food Retail
& Food
Service
Super Markets
Hyper Markets
Fast Food &
Beverage Chains
Many sub-sectors across the Agri-value-chain…
…right from the “Farm gate” to “Food plate”…
Opportunities for Agri-Entrepreneurship(Contd…)
19

20. 1. At Farm Level:
Production of agriculture produce by making best use of the technology,
resources and demand in the market.
2. As Service Providers:
These include the input procurement and distribution, hiring of implements
and equipment like tractors, seed drills, sprayers, harvesters, threshers, dryers
and technical services such as installation of irrigation facilities, weed control,
plant protection, harvesting, threshing, transportation, storage, etc
3. Input Producers
There are many potential business opportunities like, bio-fertilizers, bio-
pesticides, vermi-compost, soil amendments, vegetables, ornamentals,
agricultural tools, irrigation accessories, There are good opportunities to
support sericulture, fishery and poultry.
4. Value Chain / Processing / Marketing
Small scale agri. processing units, post harvest etc.
Opportunities for Agri-Entrepreneurship(Contd…)
20

21. Farming / Pre harvest Post Harvest
Vegetables Grading
Fresh Fruits Food processing
Green House Cold storage
Herbal Plantation Value addition
Agro Forestry Logistics
Floriculture Fast food/ Food items produce
Organic farming Herbal produce cleaning,
sorting, grading and packing
Source:-Mehta M.2013
Entrepreneurial opportunities in Agri. Sector
21

22. 22
Kaka Jagtap came to Pune from Wathar, a small village in Khandala Taluka , District
Satara in Maharashtra, located about 110 km from Pune, he was just 29 years of age. He
along with his father and three brothers were in the family business: ‘Farming’. But Kaka
was not the one to be happy with this business model. He always believed that the
commission agents at the Agriculture Produce Market Committees (APMC) controlled the
business of agriculture. He no longer could see his village farmers at the mercy of these
commission agents. He reached Pune and with the borrowed money from his father, friends
and relatives and became a commission agent at APMC Pune.
Kaka Becomes a Link:
As a teenager because of his schooling Kaka had learnt that the neighboring district Pune
was an urban area. Pune APMC had an open system of price fixing for the farm produce.
The mediator sold the produce to the customer who would bid the price in the open. The
mediator’s commission was fixed at 8% of the deal. Kaka thought this system was a better
system for the farmers. The farmers came to know the price for which their goods were sold
on the spot. Kaka took initiative to bring together a group of farmers to send their
vegetables and fruits to Pune market. Under the guidance of a senior farmer, the group
started sending their produce to Pune in a delivery van. The model was; all the interested
farmers would pack the farm produce in gunny bags/bamboo baskets. The parcels had labels
with the name of the farmers written on it. On each trip a farmer would accompany the
delivery van.
The Success Story of ‘Kaka Jagtap’ Farmer –Commission Agent –Agri-products
Exporter from Satara District (Maharashtra) India.

23. 23
Over a period of time this model became successful. At the APMC market in Pune Kaka
would investigate the price of each commodity. Kaka dealt only with the mediator who
offered him the best price. Thus Kaka started learning the business of selling fruits and
vegetables. By this time Kaka had successfully completed his high school examination.
He wanted to study further.
He worked as an assistant to one of the licensed Commission agents at APMC Pune.
Kaka worked in the early mornings and attended the college in the afternoons. The
villagers at home started sending their farm produce to Kaka as he would give them the
best price. Kaka taught his villagers that for getting the best price, the goods must be
sorted and graded. Through experience he learned the first lesson for value addition by
sorting and grading. Earlier the farmers would send the produce without any type of
sorting. The produce came to the market in a mixed form. This always got them a lesser
price because the customer believed that the product was of a lower grade. Working with
the commission agent at APMC Pune was a valuable experience for Kaka.
Kaka Starts his Food Industry
•Kaka’s interaction with different industries introduced him to the food processing
industry. Being known in the APMC market for his honesty and reliability Kaka started
supplying Oranges, Sweet lime, Papaya, Guava to these food processing industries. Kaka
learnt that the food processing industries added value to the farmer’s goods. Kaka put up a
fruit pulping unit ‘Classic Juices’.
•The unit manufactured Tomato Puree, and fruit pulps. The products were supplied to the
hotels and industrial units near Pune.

24. 24
•To make an industrial unit profitable, it required steady source of raw material. In order to
meet this requirement a cold storage facility of 450 tons capacity was built, at the cost of
Rs. 85,00,000/. The capital for this was raised from 25% Government subsidy and 75%
from borrowings from the bank.
•The farmers are charged Rs. 0.50 per kg per day for keeping their goods in the cold
storage.
Kaka becomes Exporter
•Kaka was not disheartened with closing down of his Food processing unit. Kaka was
quick in adapting to the new technology. This food processing plant uses ‘Instant quick
freeze technology’. The food products are instantly frozen at the -400 Celsius temperature.
•The capacity of the plant is 500 kg/hr. This plant is located at the outskirts Pune. The area
of the shed is about 2,500 sq.feet. It has six departments viz. Raw material inspection,
Cleaning, Washing, Processing, Packing and Storage.
•The total women employees working in this unit are about 75. Kaka has established brand
‘Taj’ for exporting these products Exports to European market.
•The processed food consists of popular Indian Dishes like Curries, Pulav, Biryani
Parathas. Breakfast food includes Puri Bhaji, Dhokalas, and Halva. The chef at the
processing unit formulates different Indian dishes to be exported.
•Between the period April 2005 to March 2006 Kaka had exported 2,400 metric tons of
these products at an average of 200 tons per month.

25. Some other ….new and emerging opportunities in
this sector
• Agro Tourism • Organic fertilizer
• Landscaping • Natural Dyes / Color
• Farm equipment
manufacturing
• Agri. Clinics
• Agri. Clinic • Agro. Waste/ fuel
Source:-CED-Gujarat.Mr Mayank Mehta 25

26. Entrepreneurial Opportunities in Agriculture
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http://dfs.berkeley.edu/about-us/mission-goals/
Diversification in agriculture involve
shift in cropping pattern from
traditionally grown crops to more
remunerative crops like oilseeds,
pulses, fodder crops, horticulture,
medicinal and aromatic plants,
floriculture etc. It also includes
livestock and fishery enterprises and
small scale agro-based industries.
Diversification increases the
employment opportunities, optimum
use of resources and profitability.
• Diversification

27. Entrepreneurial Opportunities in Agriculture:
27
• Organic farming:
The importance of organic farming
is growing very fast particularly in
international market. This sector
provides greate business
opportunities to agro-based
entrepreneur. Area under organic
farming is increasing but unable to
meet the demand of organic produce.
http://www.organicagriculture.co/indian-scenario.php

28. floriculture is a very
profitable sector. India's
share in world trade of
floriculture is just 0.18
per cent. This is a huge
market to be tapped
considering the rising
demand for fresh flowers.
Entrepreneurial Opportunities in Agriculture:
• Floriculture
28

29. • Production of agro-inputs:
• Farmers can start entrepreneurial activities in the production of
seed, organic fertilizers and pesticides.
29
Entrepreneurial Opportunities in Agriculture:

30. 1- Independent entrepreneurship: Individual, by itself, generates
the business and carries out the risks and innovation in its own
economical institute.
2- Organizational entrepreneurship: supported by a pre-established
corporation or organization, the entrepreneur discovers and
exploits the new productions and technologies.
(Shirani, 1998)
Approaches to Agri-Entrepreneurship
30

31. Types of Agri entrepreneurship
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1. Individual
entrepreneurship
2. Group
entrepreneurship
3. Cluster formation
4. Cooperatives

32. Individual Entrepreneurship
• It is the entrepreneur who is the only (100%) owner.
• The entrepreneur bears full responsibility for each and
every activity and is alone the strategic thinker and decision
maker to make the unit viable as well as profitable.
32

33. Group Entrepreneurship
It is classified into mainly three types such as
i) Partnership:
ii) Private Limited Company
iii)Public limited company:
33

34. Cluster Formation
• It is primarily a formal and non-formal group of
people to achieve a common objective.
• It basically covers Non-Governmental Organizations
(NGOs), Self-Help Groups (SHGs).
34

35. NGO’s
These are non-profit making organizations registered under the
Society's Registration Act, 1860.
SHGs
• Self-help groups are a platform of 10-20 people mainly, below
the poverty line (BPL) to form a social group not only to
mutually help each other but also to achieve common objective.
• Only one member from a family is eligible for membership
group.
35
Cont…

36. Co-operatives
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“A co-operative is an autonomous association of
persons united voluntarily to meet their common
economic, social and cultural needs and aspirations
through a jointly-owned and democratically
controlled enterprise".
“A Cooperative Enterprise is a group based form of
business which is owned and controlled by the
same people who use it services.”

37. Most potential sectors in India
1. Food Processing
2. Dehydrated Fruits and Vegetables
3. Poultry Industry
4. Cottage and Handicrafts Industry
5. Oil Industry
6.
37

38. Agencies involved for Agri-
Entrepreneurship Development
38

39. Problems In Agri Entrepreneurship
1. Financial problems
Shortage of fund
Lack of finance available to Agri entrepreneurs is one of the biggest
problems . Major sources of finance in rural areas are loans from regional rural
banks or from zamindars but their rate of interest are usually very high.
Industrial Finance Corporation of India (IFCI), Industrial development bank of
India, Industrial Credit and Investment Corporation of India (ICICI), Small
Scale Industry development bank of India (SIDBI).
Lack of infrastructural facilities
The growth of Agri entrepreneurs is not very healthy in spite of
efforts made by government due to lack of proper and adequate infrastructural
facilities.
Risk element
Agri. entrepreneurs have less risk bearing capacity due to lack of
financial resources and external support . 39

40. 2.Marketing problems
Competition
Major problems faced by marketers are the problem of
standardization and competition from large scale units.
Middlemen
The Agri.entrepreneurs are heavily dependent on middlemen for
marketing of their products who pocket large amount of profit.
Problems in Agri Entrepreneurship (Conti…..)
40

41. 3. MANAGEMENT PROBLEMS
Lack of knowledge of IT
Information technology is not very common in rural areas. Legal
formalities Agri. entrepreneurs find it extremely difficult in complying with
various legal formalities in obtaining licenses due to illiteracy and ignorance.
Lack of technical knowledge
Agri. entrepreneurs suffer a severe problem of lack of technical
knowledge. Lack of training facilities and extension services.
Poor quality of products
Another important problem is growth of Agrientrepreneurship is the
inferior quality of products produced due to lack of availability of standard
tools and equipment and poor quality of raw materials.
Problems in Agri Entrepreneurship (Conti…)
41

42. 1.Creation of finance cells
The financial institutions and banks which provide finances to
entrepreneurs must create special cells for providing easy finance to rural
entrepreneurs.
2. Concessional rates of interest
The Agri entrepreneurship should be provided finance at concessional
rates of interest and on easy repayment basis.
Remedies to Solve These Problems
42

43. 3. Proper supply of raw materials
Agri entrepreneurs should be ensured of proper supply of scarce raw
materials on priority basis. A subsidy may also be offered to make. the products
manufactured by rural entrepreneurs cost competitive and reasonable
4. Offering training facilities
Training is essential for the development of entrepreneurships. It enables
the rural entrepreneurs to undertake the venture successfully as it imparts required
skills to run the enterprise
5. Setting up marketing co-operatives
Proper encouragement and assistance should be provided to rural
entrepreneurs for setting up marketing co-operatives. These co-operatives shall
help in getting the inputs at reasonable rate and they are helpful in selling their
products at remuneration prices.
Conti…..
43

44. • A shift from ‘agriculture’ to ‘Agri-Entrepreneurship’ is being viewed as an
essential pathway to refresh Indian agriculture. While the share of pure
agriculture in GDP may decline, the share of Agri Entrepreneurship is
bound to go up with the demand for value added products continuously
increasing.
• Agri entrepreneurship is also the answer to removal of rural poverty in
India. Therefore, there should be more stress on integrated rural
development programs. The problem is that most of the rural youth do not
think of entrepreneurship as the career option. Therefore, the rural youth
need to be motivated to take up Agri based entrepreneurship as a career,
with training and sustaining support systems providing all necessary
assistance. There should be efficient regulated market and government
should also lend its helping hand in this context.
CONCLUSION
44

45. • Sandeep S. (2012) Problems Faced By Agri Entrepreneurs and Remedies
to Solve it. IOSR Journal of Business and Management (IOSRJBM) ISSN:
2278-487X V olume 3, Issue 1 (July-Aug. 2012), PP 23-29
• Suryvanci. S. year (2012) Opportunities for Agri. Entrepreneurship. ISAP.
• Sancho. F. year (2010) Agricultural and rural Entrepreneurship: concepts
for modeling development. Year-5 , Jan- July page 64-65.
• Retrived from http://www.scribd.com/doc/26661470/Agri. Entrepreneurship-
in-India on 26-04-14
• Retrived from http://www.studymode.com/essays/Agri.-Entrepreneurship-
Opportunities-And-Challenges-383504.html on 30-04-14
REFERENCES
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