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India is the richly diversified Nation. Unfortunately this richness is not experienced by a common consumer. We need real Green Revolutions not just limited to boost the productivity of our land holdings but also establishing a direct link between a Farmer and a Consumer. Meaning this Green Revolution aims at establishing the state of the art Agri Processing, Storing, Carrying and Forwarding facilities.
India is the richly diversified Nation. Unfortunately this richness is not experienced by a common consumer. We need a real Green Revolution that is not just limited to boost the productivity of our land holdings but also establish a direct link between a Farmer and a Consumer. Meaning this Green Revolution aims at establishing the state of the art Agri Processing, Storing, Carrying and Forwarding facilities that connect any Farmer to any Consumer.
Consider the following facts and the impact they have been making on the producer and the the real consumer.
Tender Coconuts are procured from a farmer at less than Rs.10 per nut and sold to the real consumer at Rs.30/- per nut. The difference is many a times more than Rs.20/-.
The prices of different varieties of Rice - in a bag of 25 kg - are consistently increasing.
The prices of cashew Nuts, Almonds and other dry fruits are also increasing phenomenally.
The price of Milk and Milk Products are relatively very stable among all agri-commodities. The presence of a cooperative giant like Amul (GCMMF Ltd) is the reason for this stability. When compared to the bottled water the price of Milk is at a highly competitive price!!
The Gujarat Cooperative Milk Marketing Federation’s marketing, distribution and sales network is the reason for Amul’s success. Why our farmers are not able to appreciate this fact and why India has not yet produced yet another model matching Amul for any other agri-commodity? The answers are known to all - the vested interest and a unique mafia.
Change is the only and the most permanent feature of life. The emergence of IT industry and its role in every industry is being experienced by all in the country. IT is no more a data keeping system it is an enabling Industry for all the industries and the agriculture is not an exception to this.
Here is a dream for India’s agricultural sector in general the relationship between a small farmer and a common consumer in particular:
The Govt of India creates a level playing field for the new generation startup companies called Supply Chain Management Companies (SCMCs) that can facilitate the transportation of the produce from the field of the farmer to the grading/processing unit and from there to the end user with facilitates to carry, store and forward the stock. These SCMCs are exclusively for the Agri sector so they are aptly called AgriSCMCs.
IndianFarmer.in is a new domain created by the Ministry of Agriculture / Cooperation. Any farmer can register his/her name in this website and sell on line his produce!! Yes, any consumer at any part of the world can choose a farmer of his/her choice from a locality of his choice and place an order.
The AgriSCMCs are the ones that offer services from various Farming Regions to the end user localities. Both the consumer or the Farmer, as the case may be, can have the options to choose an AgriSCMC and pay a fee for the grading/processing and transporting of the produce.
At any given time the website links the consumer with the producer through a viable link of AgriSCMCs.in Thus it is a choice one makes to sell and buy through an AGriSCMC. A Farmer with any size of holding and a consumer with any type need for any quantity can directly get connected to meet their needs.
This is certainly possible with IT and AgriSCMCs. Either the Farmer has to pay for transporting or the consumer. Thus it compels the AgriSCMCs to be competitive. The formation of a cartel of AgriSCMCs can be prevented by demarcating the Farming Regions and framing the rules to be complied fully. The viability of this business is very high as it can exist as long as the Farmers and Consumers exist!!
The ideal state of affairs can realize the following need:
Mr. Ram, presently staying at Gurgaon, needs custard apples from Rajanagaram in East Godavari District of Andhra Pradesh. He can look for a Farmer on line and either pay the entire cost of fruits along with AgriSCMC’s fee or just pay the price of the fruits and choose the best and highly competitive AgriSCMC for delivering the fruits at his door step within a specified period. In this process Mr. Ram is given various options by showing the Farmers, costs, agencies, time, etc., of the entire transaction and finally make a deal. This is the robustness of the Agri IT System that any Indian wishes to see operating in real time. This logic can extend to transactions beyond the boundaries of India!
This is the only way we can ensure remunerative price for the Farmer and as well as the value for money spent by the Consumer. The Middle Men can be replaced by a rational system of AgriSCMCs. The Farmers of each Farming Area can also be encouraged and supported financially, technically and managerially to establish AgriSCMCs on their own. Thus it really creates a level playing field.
ITC (Agri Business Division) like company can establish their own AgriSCMCs and do a roaring business as it lasts as long as the humanity exists.
This kind of set up can also attract other players in the food industry to sell their products, like airlifting the Steaming Annavaram Prasadam to any part of the country and the world in a container with highest standards of hygiene like HACCP.
It creates the real time level playing field for producers, consumers and AgriSCMCs just like in the case of buying a product that is available at different costs with different quality standards and measurements.
This can also pave way for the emergence of various agri-manufacturing companies both by Farmers or the new generation businessmen. Today we see huge fluctuation in the prices of Onions, Tomatoes, various fruits and vegetables. There are several instances of allowing these products to become rotten to maintain the price! Million tonns of Sapota, Oranges, Custard Apples and many other fruits in this country are perishing in every season since decades. This set up can prevent this forever.
The finest example that show cases the potential of the AgriSCMCs is making of pan with the help of Betel leaves. Pan making and Pan eating is both a roaring business and a great habit among people in Varanasi. They attribute this to the famous song Khaike Paan Banaras vaala in Don of Amitabh!! This business is also giving business to Health Services Industry by using polluted water, substandard ingredients, septic work processes, etc. No corporate entity has so far shown interest in entering the pan making and selling market in a big a way. There are no branded pans available today. It is here exist a great scope. The startups in the Agri Sector must focus on this opportunity and enable phenomenal growth.
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