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Developing entrepreneurship through processing and value addition

  1. Entrepreneurship DevelopmentEntrepreneurship Development through Processing andValue Additionthrough Processing andValue Addition Entrepreneurship DevelopmentEntrepreneurship Development through Processing andValue Additionthrough Processing andValue Addition 1 RENU BALAKRISHNANRENU BALAKRISHNAN11, ASHISH SANTOSH MURAI, ASHISH SANTOSH MURAI22, KHWAIRAKPAM, KHWAIRAKPAM BEMBEMBEMBEM11, SANDEEP MANN, SANDEEP MANN11 AND TH. BIDYALAKSHMIAND TH. BIDYALAKSHMI11 ICAR-Central Institute of Post-Harvest Engineering and Technology, Ludhiana (Punjab) ICAR-Agricultural Technology Application Research Institute, Ludhiana (Punjab)
  2. 2nd largest arable land Rural India 90 m agricultural households (54.6%) Largest livestock population Largest producer of milk, pulse, millets, jute, cotton Second largest producer of rice, wheat, sugarcane,90% of farmers < 2 ha land 52% of agril. Households is indebted (NSSO, 70th Round) Average monthly income/ agril. Household- Rs 6500/- rice, wheat, sugarcane, groundnut, fruits & vegetables Leading producer of spices, plantation, livestock & poultry Total food grain production- 284.83 mt (2017-18, 4thAdvance Estimate) 90% of farmers < 2 ha land (Average size- 1.15 ha) 2
  3. Small size of land holding Inefficient water management Lack of access to inputs Lack of timely support Lack of ability to diversify Location inaccessibility Lack of access to credit Inadequate market accessLack of timely support Lack of knowledge Lack of location specific & small farmer friendly technologies or inputs Inadequate market access Lack of value addition at farm level Weak organistional capacity 3
  4.  Paddy : 56 - 89 %  Wheat: 77 - 88 %  Coarse grains: 72 - 86 %  Pulses: 79 - 86 % 4  Pulses: 79 - 86 %  Oil seeds: 40 - 85 %  Horticultural crops: 32 - 68 % (DAC, 2013)
  5. Doubling Farmers Income Farming as BusinessIncome Business 5 Entrepreneur/ Agripreneur
  6. Agribusiness - different businesses involved in agricultural sector Agripreneur - Farmer who organizes his/her farm, livestock, labour etc. in such a manner that responds to the market demand or creates its own demand & fetches reasonable income 6
  7. Agripreneur Identify opportunities  Take calculated risks  Brings together all the resources to make a product / service  Manage the enterprise Manage the enterprise  Persistently purse prospects to grow  Anticipate market changes  Adapt the business accordingly Entrepreneurship Process of creating & managing such a market led enterprises 7
  8. Supporting Phase Stimulatory Phase Mental preparation Backing 8 Sustenance Phase Follow up
  9. 1. Stimulatory Phase  Mentally prepare farmer to take up entrepreneurial venture  Help farmer  To identify his/her potentials  Opportunities Opportunities  Market  Identify the enterprise  Ensure the readiness of farmer to start the enterprise  SWOT analysis of the enterprise 9
  10. 2. Supporting Phase  All sort of support should be provided as & when required while farmer produce & finally market their products  Training on technical aspects  Assistance to find services like financial assistance, regulatory agencies, experts & advisors, suppliers etc.agencies, experts & advisors, suppliers etc. 10 3. Sustenance Phase  Agripreneur get feedback about their products/services  Follow-up to agripreneur whether to expand, diversify, modernize or restoration of the unit
  11. Technique: Micro screening Identify at least 10 potentially feasible project ideas Identify most viable project based on 10 factors • Availability of market • Availability of raw material • Availability of technology 11 • Availability of technology • Availability of skill • Government priority • Strategic fit • Ease of implementation • Risk exposure • Profitability • Cost / benefits
  12. Micro-screening is done using a chart Identify most viable project based on 10 factors PJ MKT RM TEC SKL GOP SFT EI RE PFT C/B TTL CSF 1 2 3 4 5 6 12 6 7 8 9 10 10 factors will be rated on five point continuum scale 1-Poor, 2- Fair, 3- Satisfactory, 4- Very Satisfactory and 5- Excellent SWOT analysis of business idea
  13. Certain factors particular to the identified projects that are crucial for the success of that specific project PJ MKT RM TEC SKL GOP SFT EI RE PFT C/B TTL CSF 1 2 3 4 5 13 5 6 7 8 9 10 If any of the certain factors is missing or inadequate or not taken care, it may lead to failure of the project
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  15. National Institute for Entrepreneurship and Small Business Development Under Ministry of Skill Development and Entrepreneurship 1. NIESBUD, Noida Under Ministry of Skill Development and Entrepreneurship Involved in:  Training to entrepreneurs, trainers, consultants  Consultancy in developing entrepreneurship  Support to institutes conducting entrepreneurship training 15
  16. 2. NSTEDB, New Delhi National Science and Technology Entrepreneurship Development Board Under Department of Science and Technology Promote innovative knowledge based enterprises to generate self- employment opportunities for science & technology persons Involved in:  Awareness camp on entrepreneurship  Entrepreneurship Development Programme  Open Learning Programme for Entrepreneurship Skill Development Training through Science & Technology 16
  17. 4. ICAR, New Delhi Indian Council of Agricultural Research Promoting entrepreneurship through various schemes, EDPS, trainings, technology licensing etc. Schemes:  Agri-Business Incubation (ABI) Centres Attracting and Retaining Youth in Agriculture (ARYA) Student READY Programme Value Addition & Technology Incubation Centres in Agriculture (VATICA) 17
  18. i. ABI Centres  Aim is to encourage, nurture & support scientists & technologists to convert the technologies developed by them into successful marketing endeavours  Started in 2009 under NAIP  22 centres 22 centres Promote Entrepreneurship:  Providing commercializable technologies  Skill up gradation through training  Access to infrastructure facilities  Marketing & business plan development 18
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  20. Contd… ABI Centre, ICAR-CIPHET, Ludhiana:  Started on May 17, 2013  Entrepreneurship development in agro- processing & value addition  Training Training 20  Utilize facilities available in institute for processing  Aids in developing marketing linkages  Technical backstopping
  21. ii. ARYA  Project under NAIF  Attract & empower rural youth to take up various agriculture & allied sector enterprises for earning sustainable income  Implemented in 100 KVKs  Each ARYA centre has to select at least 200 young farmers  Multiple trainings to impart technical knowledge & entrepreneurial skills  Exposure visit  Interactive session with successful agripreneurs 21
  22. Contd… ARYA Centre aids young farmer:  Assists in developing business plan  Developing potential linkages  Marketing  Monitor progress of the enterprise  Introducing mid-term corrections if necessary Introducing mid-term corrections if necessary  Provide necessary operational costs to support procurement of critical inputs KVK Bathinda, Punjab (2016-17): » Trained 30 youths in the area of processing & value addition 22
  23. iii. Student READY Programme  Rural Entrepreneurship Awareness Development Yojana  Convert agricultural graduates from job seekers to job providers by promoting entrepreneurship  Focuses on under-graduate students 5 components:5 components:  Experiential learning  Rural Awareness Works Experience  In-Plant training / Industrial attachment  Hands-on training (HOT)/ Skill development training  Students projects 23
  24. iv. VATICA  To popularize post-harvest management ventures aimed to minimize post-harvest losses  20 KVK’s has to establish Value addition and Technology Incubation Unit  Unit is for providing long term skill based trainings to farmers, Unit is for providing long term skill based trainings to farmers, youths and FPO’s in the area of processing and value addition 24
  25. National Institute of Agricultural Extension Management Involved in:  Management based research and education  Training 5. MANAGE, Hyderabad  Training  Consultancy  Information & documentation services  Implements centrally sponsored schemes (AC&ABC) scheme 25
  26. 26 Nodal Training Institutions (NTI) identified by MANAGE assist selected agricultural graduates in preparing bankable projects, sanctioning loan and setting up their ventures. Under this schemes, around 285 ventures were set up in the area of value addition from March 2002-2017
  27. Indian Institute of Entrepreneurship Under Ministry of Skill Development and Entrepreneurship Autonomous institution to promote & develop entrepreneurship 5. IIE, Guwahati Involved in:  Research  Consultancy services  Organize training programmes 27
  28. Rural Development and Self-Employment Training Institute NGO Engaged in empowering less educated youth through entrepreneurship development 6. RUDSETI Programme:  New entrepreneurs: Agril. EDPs, Product EDPs, Process EDPs & General EDPs  For established entrepreneurs: focus on skill up gradation & further growth 28
  29. National Bank for Agricultural and Rural Development Involved in: Provide credit support to SHG’s, NGO’s & other 7. NABARD Provide credit support to SHG’s, NGO’s & other development agencies which promote entrepreneurship development particularly producer organisations 29
  30. 8. ASCI Agricultural Skill Council of India Aim to upgrade the skills of farmers, agricultural labourers, all workers (either directly or indirectly) involved in agricultural & allied sectors through capacity building Involved in: Developing Qualification Packs (QPs) National Occupation Standards (NOS) Provides sector specific training to farmers 30
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  32. Under Ministry of Finance Provides loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises Three Interventions: i. Shishu: For initial stage/requires less fund; Loan up to ₹ 50000 ii. Kishore: For starting business / those who want to expand their 1. Pradhan Mantri MUDRA Yojana (PMMY) ii. Kishore: For starting business / those who want to expand their business; Loan ₹ 50000/- to ₹ 5 lakh iii. Tarun: Loan above ₹ 5 lakh to ₹ 10 lakh Loans are provided by commercial banks, RRBs, SFBs, Non-Banking Financial Companies and MFIs Borrower can approach any of these lending institutions/ can apply online through the portal
  33. NABARD scheme under Ministry of Finance Credit facilities to marketing federation/corporations/ cooperatives for production, aggregation, processing, marketing etc. 2. Producer Organisation Development Fund (PODF) Concerned institution can apply to banks to avail the credit facility
  34. Under Ministry of Food Processing Industries Development of agro-marine processing & agro-processing clusters 3. Pradhan Mantri Kisan SAMPADA Yojana
  35. Develop a mechanism to link agricultural production & market Aims to increase value addition, reduce wastages, increase farmers’ income & create employment in rural area Cluster based approach based on a hub & spokes model Mega Food Park (MFP)Contd…
  36. Under Ministry of Agriculture and Farmers Welfare 100 % grant-in-aid for purchase of machinery & contingency expenses for setting up units using post-harvest technologies & management, value addition, by-product management etc. 4. Post-harvest Technology and Management management, value addition, by-product management etc. Individual farmers, SHGs, cooperatives etc. can apply for the grand to Joint Secretary (M&T), DAC&FW, New Delhi
  37. Under Ministry of Agriculture and Farmers Welfare Financial support for starting dairy and allied business ventures Provides back end capital subsidy with ceiling of 25 %, minimum 10 % contribution from entrepreneur 5. Dairy Entrepreneurship Development 10 % contribution from entrepreneur Farmers, individual entrepreneurs, SHGs can apply to commercial banks, state cooperative banks, RRBs for availing the loan
  38. Farmers, to continue with agriculture, should be able to make profit out of it, which required considering farming as a business Entrepreneurship is a creative process which consists of identifying opportunities, transforming the available, resources into productive component, marketing of the productive component & therefore creation of wealthof wealth Entrepreneurship development among farmers is very important in the present scenario & government & other agencies are encouraging entrepreneurship development Farmers must be sensitized about opting for entrepreneurial ventures considering their strengths & available market opportunities 38
  39. 1) Annual Report (2016-17). ICAR-ATARI, Zone-I, Ludhiana. 2) Business World (2018). Retrieved from Cross-USD-540-Billion-By-2020-Suresh-Prabhu-Union-Minister-For- Commerce-Industry/18-01-2018-137731/ 3) De, D. (1985). Status symbol and innovative entrepreneurship are predictors of farmers progressivism. Journal of Extension System. Vol. (1), No. (1), pp. 81- 84.84. 4) Department of Agriculture, Cooperation and Farmers Welfare, Government of India (2019). 4th Advance Estimates of production of major crops for 2018- 19. 5) Drucker, P. (1964). Managing for results. Harper & Row Publishers, New York. 6) MANAGE (2017). Skill Development Schemes: AC&ABC, DAESI, STRY, FCAC. Directorate of Extension. Ministry of Agriculture and Farmers Welfare. Government of India. 7) Ministry of Food Processing Industries (2019). Government of India. Retrieved from on 10.09.2019 39
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