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Agribusiness

Budding entrepreneurs in rural Bihar

Vinay Kumar Vutukuru's picture

Agricultural entrepreneurship

Rahul Kumar is a 25-year-old community extension worker at Jeevika in the eastern Indian state of Bihar. He set up an agri-business enterprise six months ago and it’s turned out to be quite a success. Kumar earned more than INR 180,000 ($2,700) in barely one month during the rainy season crop cycle, also known as Kharif crop in India. What’s more, he sold quality seeds and other agriculture inputs to more than 150 farmers during that period, helping them save over INR 50,000. “Whatever I could earn as a Village Resource Person (VRP) over a period of one year, I managed to earn that much as an agri-entrepreneur in just one month,” said Kumar.
 
A three-way partnership between JEEViKA (a Government of Bihar supported program for economic empowerment), Syngenta Foundation India (a civil society organization working towards enhancing farmers’ incomes) and the National Institute of Rural development & Panchayati Raj (NIRDPR), an academic institution helped Kumar and his farmer friends achieve a remarkable turnaround in their fortunes.
 
In this partnership, NIRDPR provided training to the budding entrepreneurs under the overall technical support of SFI, who provided on-the-ground hand-holding and mentoring support. JEEViKA provided the institutional platform from where promising local youths were identified, selected and incubated to work as entrepreneurs. The community organizations, in many cases, also provided the initial credit for seed capital to these entrepreneurs to start their agri-business ventures. 

Pathal Ram, a small farmer from the same village said, “If I could get good quality seeds and other inputs at my home, what is the point of going to the market? It saves my time and money. I could use this time in my field for better cultivation.”

Innovative agribusinesses could drive agriculture modernization in Sri Lanka

Andrew D. Goodland's picture

Agribusiness can help drive prosperity in Sri Lanka – and we know just the entrepreneurs to do it. Over the last few months, we have seen over 1000 proposals come pouring in for consideration under the matching grants scheme (MGS) for agribusiness.  Today, the Government will sign the grant documents with the first entrepreneurs to make the cut.



The winning proposals lay out a clear plan for commercial and export-oriented agriculture initiatives that facilitate private sector investment, provide technical assistance, strengthen farmer producer organizations and promote smallholder–agribusiness partnerships.
 
The goal is to increase their competiveness, business orientation and market position in order to make them more attractive business partners in the value chain. It’s an ambitious task, but Sri Lanka’s agri-entrepreneurs have risen to the challenge.
 
Matching grants scheme supports agribusiness
 
The matching grants scheme, implemented by Sri Lanka’s Ministry of Primary Industries comes under the Agriculture Sector Modernization Project. Supported by the World Bank, with additional funding from the European Union, the project is implemented through the Ministry of Primary Industries, the Ministry of Agriculture, and five participating provinces including the Northern, Eastern, Central, North-Central and Uva Provinces.
 
A rigorous and transparent selection process was used to create a shortlist. Successful applicants would be offered up to 50 percent of the investment required through the scheme, matched by their own funds or raised from commercial loans.  
 
These small enterprises need the boost. Today, beside a few major agriculture companies, most operators in Sri Lanka are small-scale cultivators who face problems related to low productivity and lack of diversification, absence of market linkages, non-availability of inputs and limited access to credit facilities. Farmers are not organised and tend to focus on low value crops that limit income generation.

Corridors for Shared Prosperity: A Case for Replication

Pallavi Shrivastava's picture

For those trying to address challenges in global poverty, inclusive businesses offer solutions to some of the world’s most intractable social problems. Business models that create value for the low-income communities are becoming viable - these have been tested, fine-tuned and perfected by some of the finest brains. Once perfected, it makes sense to contextualize and spread these innovations or the knowledge to markets across the globe. To be able to do this, replication is an important tool.