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With the government’s vision to double agricultural income and establish Gram Swaraj and Atma Nirbahr Bharat, it is imperative to boost sustainable agricultural entrepreneurs, one in each of the 6.5 million villages.
India is commonly referred to as a country with an “agricultural economy—Krisi Pradhan Desh”. About 70% of the population depends on agriculture and related sectors, contributing about 18% of the country’s GDP.
However, there are not many agricultural entrepreneurs in this country. The total number of His MSMEs (Micro, Small and Medium Enterprises) registered in agriculture and related sectors is less than a few hundred thousand compared to about 650 million His MSMEs in the country.
Why is India seeing less development and growth of agro-entrepreneurship? Is this due to policy-level interventions or is it due to less interest from India’s enterprising youth?
Traditionally, most of the activities related to agriculture have been carried out by governments and their agencies. These are the supply of inputs (seeds and fertilizers), extension services (new varieties, introduction of technology) and the procurement of agricultural products (FCI, Mandis, NCCF). Farmers are supported by the government and its agencies for most of their activities, including financial support (Prime Minister Kisan Samman Nidhi, Kisan Credit Card, Fasal Bima Yojna). Village Level Workers (VLW), Veterinary Assistants, Cooperatives (PACS/LAMPS) and Krisi Vikash Kendra (KVK) provide services to village level farmers.
Even organizations like IFFCO and KRIBHCO have dealt with the supply of fertilizers and other materials to farmers, mainly through cooperatives. Such traditional service delivery structures have not facilitated the growth of Indian agri-entrepreneurs.
NABARD has assisted entrepreneurs through financial support, mainly in agri-related sectors (dairy, poultry, etc.), but their contribution is insignificant. Similarly, SFAC, whose mandate is to promote agricultural entrepreneurship, has recently assisted governments in promoting “farmer-producer organizations” and is less encouraged to focus on developing individual entrepreneurs. Hmm. The focus so far has been to assist cooperatives, FPOs, SHGs and other such entities in providing a range of services to farmers and addressing the requirements of the Indian agricultural sector.
Schemes such as IDEA (Initiative for Development of Agricultural Entrepreneurship), ASPIRE (Scheme for the Promotion of Innovation, Entrepreneurship and the Agricultural Industry), and Agricultural Clinics (Agricultural Graduates Only) are catalysts for the promotion and development of agriculture on a large scale. is not functioning as Indian entrepreneur.
Traditionally, at the village level, agro-entrepreneurs are “AADTHI or Aarthi” (related to the purchase of agricultural products) cooperatives (supplying fertilizers, seeds, etc.) and supply agencies of tractors and other agricultural equipment.
There were also village-level entrepreneurs who supplied goods and supplies on a barter basis. With the government’s vision of doubling agricultural income and establishing Gram Swaraj and Atma Nirbahr Bharat, it is imperative that he fosters large-scale, sustainable agro-entrepreneurs, one for each of his 6.5 million villages. .
These local-level entrepreneurs can redefine the framework of service delivery to farmers and support employment opportunities for more than 2 million people in rural India. Of course, this requires a review of existing rules and regulations.
First, it must waive the licensing requirements for selling seeds and fertilizers. Entrepreneurs only sell seeds and fertilizers to large government-regulated companies, so there is no justification for licensing requirements for these entrepreneurs. Second, the “agriculture graduates only” requirement for agricultural entrepreneurs and institutions to sell seeds and fertilizers is not justified. Third, sourcing of produce exclusively through Mandis should be an option. Local entrepreneurs shall be permitted to procure, store and transport agricultural products without restrictions or licensing requirements.
Fourth, financial institutions need to make each of these entrepreneurs a ‘business facilitator’ so that farmers can get credit, and finally, local entrepreneurs need to be involved in various government schemes. and/or program benefits.
Agricultural entrepreneurs at each village level can be licensed and assisted to set up nurseries to ensure that farmers have access to a wide range of varieties, including high-quality seedlings and cash crops. Each agricultural entrepreneur with facilities to sell seeds, fertilizers and other inputs, especially fertilizer applications such as nanourea and DAP, use of drones, farm equipment employment stations, procurement and storage faculty, produce transport facilities, All government programs and support to earn credit shall be able to build a sustainable enterprise.
Agricultural entrepreneurs can advocate for and assist governments by advocating government plans and programs. Many large private companies such as Big Basket, Reliance Mart and Agri 10 X can use local agri-entrepreneurs in reaching out to local communities for a variety of products and services.
Agricultural entrepreneurs can help governments conduct animal surveys, soil health surveys, groundwater surveys, and other research work, including census.
This not only provides a source of income, but also supports governments in obtaining up-to-date data and designing appropriate policies for intervention.
Agricultural entrepreneurs in every village can realize the government’s vision of transforming India’s agricultural productivity and doubling farmers’ incomes. Indeed, Indians, especially rural youth, are enterprising by nature, and with little support and operational freedom, they can build large, sustainable enterprises. Governments need to rethink traditional ways of serving farmers and encourage local entrepreneurs to address all concerns.
We need to revisit the offices of VLW, veterinary assistants, KVK and other executives and impose trust on local entrepreneurs to provide all such services and support farmers. These agro-entrepreneurs can also produce village/farm data as soil maps, water level maps, etc., update them regularly, and include community participation to address relevant concerns.
It is true that these agri-entrepreneurs (one in every village) can help transform the agricultural sector and explore its true potential. Farmers will become more actively involved in adopting new technologies, changing cropping patterns, adapting to cash crops and engaging in the growth of related sectors through the local agroentrepreneurship model.
(The author is a former IAS officer and former Managing Director and Chief Executive Officer of the Common Service Center of the Ministry of Information Technology)
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