Tag: Agriculture

  • E-commerce for Agro – a new way forward

    E-commerce for Agro – a new way forward

    In my last blog, I talked about how important MSMEs are for the Indian agriculture sector and how they can be the change drivers and flag bearers of the next agriculture revolution in the Indian economy. Today, I would like to focus on one particular aspect of MSMEs which can become a major market area, E-commerce.

    Emergence of E-commerce and Indian consumers

    I remember the days when Amazon and Flipkart started as online booksellers in India and bibliophiles like me just welcomed these platforms with open arms and warm hearts. It was a pure joy when you would receive a neatly packed book with some cute bookmarks added as a bonus to the package. Soon the companies grew big and ventured in many more product ranges from electronics to clothing and recently, to groceries. These pioneers are now almost like online supermarkets. 

    However, there are quite a few specialty platforms who are focusing on only one or two products like Myntra in clothing, Lenskart in eyeglasses and Medplus in medicines. These companies have carved their niche even in such a competitive market. E Commerce is now going to rural areas of the country too. Starting with just delivery services of established platforms, many village craft producers are now getting into their own e-commerce outlets.

    Agro E-Commerce

    Even though handicrafts and artistic stuff is getting into this field, the agriculture sector has rarely explored this method of product delivery. Bigbasket is one of the major players which has grabbed the initiative in doorstep delivery of food produce and groceries. However, there are many such avenues in the agriculture sector which can grow leaps and bounds with e-commerce. Even some small startups initiated by vegetable producers run on the same doorstep delivery model however. Sahyadri farms from Nashik and Green Tokri from Pune are just a couple of examples. They can become a model for many to follow.

    Firstly, a doorstep delivery service of fresh produce is sadly the only idea that pops in a general mindset when we think about e-commerce in the agriculture sector. However, if we start thinking more and more about the sector, many other ideas will also emerge. For example, agro-processing MSMEs can start e-commerce of their processed goods. Small self-help groups can come together, start preparing good old traditional recipes of condiments, pickles etc. These quality products with traditional flavours will sell like hot cakes on the urban e-commerce market with attractive packaging. One most lucrative plus point of e-commerce is these small groups and MSMEs can just avoid middle-man from the trade cycle and make good money.

    A bonus cascading effect

    These increased profits in rural areas will always work fantastically in improving the quality of life in our rural areas. In turn, this will lead to the development of rural areas and reduce the pressure on Indian cities as more and more people will be ready to stay behind and live a good life. 

    Written as part of Blogchatter’s campaign #ECommerceInnovation. Read more posts in the campaign here.

  • Indian Agriculture – a golden market for MSMEs

    Indian Agriculture – a golden market for MSMEs

    India, a prosperous country with a wide range of geo-climatic zones. Various mighty rivers flowing through her terrain have given us a very fertile land. It has witnessed a growth of an agrarian civilization on the banks of Sindhu River, huge alluvial plains of Ganga and along many other riverbanks throughout the history. Even today, the Indian economy is considered as an agrarian economy. Industrial revolution and advancements have created a few opportunity magnets in the form of industrial towns. However, even today the majority part of our population is agrarian. On one hand a new trend is saying to go organic. On the other side is aspiring to bring modernization to the agriculture sector. This opens up a good opportunity for agro micro, small and medium enterprises (MSMEs) to come in.

    Indian agriculture – a golden market for MSMEs

    When we talk about industrialization or modernization of agriculture, we paint a very broad monochrome picture. Huge land parcels tilled, sown, and harvested with large machines. Large factories making goods out of the produce which are spread over acres, etc. However, in the Indian context, small and medium farms are a unique character of our agriculture sector. Employing large machines and having homogeneous cropping over a large size farm is difficult. This brings a very lucrative and unique opportunity to get MSMEs. They can create a successful business in this market.

    Flexibility and size of MSMEs is a key quality which makes them proper fit for this market. MSMEs work with an open mind for new ideas and enthusiasm to put them to work. Hence, There’s a high potential to bring entirely new aspects to the market. Entirely new service or product can change the lives of small and medium farmers of India.

    Service delivery – A good chance to make a name in the market

    The term agro-industry largely focuses on produce processing and value addition. However, I believe there’s a huge scope for service sector enterprises to flourish in the agro-industry sector. A robust delivery chain is a backbone for the success of the agriculture sector of any economy. Even the government has understood it and took some steps to strengthen and enhance the logistics around the sector. In 2012, it established the National Centre for Cold-Chain Development. The report of the National Task on Cold-Chain established earlier made this happen. With help of MSMEs local farmers can establish delivery networks with food processing industries. Vegetables have to be sold quickly in the market due to their small shelf life. Vegetable farmers can directly transport their fresh produce to the retails customers through delivery partners.

    One more big issue of Indian farming is the labour problem. I believe this can also be solved by creating a service industry where human resources are trained and equipped with proper skills and tools for efficient farming activities. India is progressing in the service sector. Our BPOs and Software companies, exporting their services in the global market. These agro-service MSMEs will see a growth of the service sector in the main economic base of the Indian economy.

    Co-operative enterprises – Path for village self sufficiency

    We have a very weird notion that only a wealthy industrialist can start an industry or enterprise. However, we have our very own example of cooperative achieving a magnificent growth. Local farmers of Anand, Gujrat started India’s beloved Amul as a cooperative. It started back in 1946 under the leadership of local farmer Tribhuvandas Patel. Later it achieved a glowry of white revolution with the guidance of Padma Vibhushan Verghes Kurien. It created wealth for local villages and made them self-sufficient. Mahatma Gandhi had written about his concept of village swaraj. He dreamt that every village will be self-sufficient in every aspect including finances. Today, if villages come together and form these MSMEs which will handle, process, package and sell their own produce. Then, Indian agriculture will see another revolution. It will pave a way towards a sustainable development of rural India. 

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