eChapters

Introduction

In 2030, 289 MT of food grain production will be needed in India, whereas 349 MT would be needed in 2050. India's agriculture is now facing several problems, including the well-being of farmers, deteriorating soil health, stagnant productivity, a declining water table, soil salinity, a decline in factor productivity, and the need to limit further expansion of irrigated land. The livelihoods of millions of small farmers are in peril because of ecologically destructive and unsustainable agricultural practices. Growing countries must increase their agricultural production systems to boost their economies, food supplies, and food and nutritional security (Gill et al., 2005). Previous research initiatives in Indian agriculture that focused on a single company were inadequate to ensure sustained increases in production. Among the f inest choices for low-income farmers is the integrated agriculture system (IFS). With IFS, several farm operations may be streamlined to increase productivity and income. Agricultural waste and trash are also recycled on the property. It is essential that farmers have a reliable source of income if they want to raise their living standards beyond the poverty level. To deal with the challenges of the current economic, political, and technological environments, it is vital to progress production or consistently raise output.

Introduction

Most of India's population, which lives in rural areas and is largely uneducated and unskilled, is unable to compete in the employment market generated by the expansion of the service industry. They are therefore reliant on the agricultural sector for their means of subsistence. Even in the modern era, the agriculture industry is still a significant source of employment, as it employs more than fifty percent of the labour force. The cyclical and seasonal character of unemployment is made worse by the fact that agriculture is inherently seasonal and that there are insufficient irrigation facilities.

A significant portion of the labour force used in agriculture is of a secretive character. Even though they provide the appearance of having a job, their marginal production is zero. Even if some of the younger people living in rural farm communities want to move away from primary agricultural production activities and towards secondary agricultural and agribusiness pursuits, it is possible that the current level of agricultural production will not be impacted in any way (Shivacharan et al., 2017). This led to a focus on seeing agriculture as a commercialization aspect for improving the economic aspects of the people who aspire to entrepreneurship in the agriculture sector.

“Global Forum for Rural Advisory Services” (GFRAS) defines “Agripreneur ship as an entrepreneurship activity practiced by individual who aims to cre ate wealth by applying innovative skills within the agriculture industries”. As mentioned, agribusiness entrepreneurship is a relevant solution that may be implemented throughout the agricultural value chain.

Introduction

Sericulture is regarded as a significant rural and cottage industry in India. It can generate more income in addition to agricultural crops. Although being viewed as a secondary occupation, sericulture may now be practiced on a large scale due to technological advancements. Since it provides a steady source of revenue, cocoon production and cultivation could be seen as a vital economic tool for the improvement of rural communities. It spreads its welfare-raising distributive impact both in the rural and urban sectors of society throughout its vertical process of production (from the rearing of silkworms to the fabrication of silk goods). Although farmers in rural regions engage in sericulture operations, most of the silk is produced in urban towns and cities through weaving. As a result, silk and sericulture are interconnected with both the agrarian and cottage industries, having a broad-based distributive effect on the creation of jobs and revenue. The employment generation pattern of the sericulture sector has been divided into two main categories by the Indian Sericulture Industry: 1) Direct employment, which includes mulberry cultivation, leaf harvesting, and silkworm rearing. 2) Indirect employment examples include reeling, twisting, weaving, printing, dyeing, finishing, and processing silk waste.

Introduction Insects are the largest group of individuals in the phylum Arthropoda. They are the most dominant species on earth, as they originated 480 million years ago. Insects account for damage to agriculture produced through pest incidence; they also render benefits through pollination services, reduction in pest population as natural enemies, and various other services. Utilisation of beneficial insects like silkworms, honeybees, and lac insects for their products was well known to Indian people way back. In the current chapter, opportunities for the utilisation of some of these beneficial insects for emerging businesses are discussed.

Insect farming

By 2050, there will be a 60% increase in the global need for proteins, driven by the unrelenting growth of the human population. What is very disturbing is that present protein manufacturing uses very unsustainable methods, in addition to this exponential increase. The ecosystem is under a lot of stress from traditional farming practices, which also contribute to the loss of already depleted wild fish species and water supplies. By 2050, there will be 10 billion people on the planet, and to feed them sustainably, new farming options such as insect farming will be necessary. Due to their rapid rates of reproduction and high protein content, insects are extremely simple to produce (Igini, 2022).

Introduction

India is the largest banana producer in the world. They grow bananas on an area of 9 million hectares and get 36 MT per hectare. India exported 2,000,000 MT of banana worth $1 billion to other nations. The banana production system supports the labour market, alternative food system, export eco-system, and nutritional security, among other things. The development of climate-resilient banana varieties, tissue culture protocols, macro-propagation, ornamental bananas, micronutrient mixtures, site-specific nutrient management, biocontrol agents for pest and disease control, robust virus diagnostic kits, and so on are all highly recommended and encouraged to make the banana industry sustainable and profitable in the long run. Technologies and products for use after harvest are also vital. Branding, supporting entrepreneurship via incubation platforms, marketing intelligence, and handholding for technical support are necessary to sustain banana production and drive value addition. Bananas and plantains, more than any other fruit or vegetable, constitute a staple food for millions of people worldwide and contribute to a healthy diet. In addition to carbohydrates, it's a wonderful source of potassium, vitamins, and minerals. The fat-free fruit has a calorie count of 90 per 100 grams. Dessert bananas are normally eaten raw, while plantains or cooking bananas are commonly prepared in a variety of savoury ways, such as boiling, steaming, frying, or roasting. The banana industry has expanded in recent years, making a greater contribution to the economy in terms of both employment and food supply.

Introduction

The vast natural and cultural resources of India contribute to the country's abundant growth. Taking advantage of this, the tourist industry in India has experienced one of the most rapid growth rates seen anywhere in the world. The travel and tourism industry accounts for a significant portion of overall economic growth around the world, and over the past nine years, India's rate of economic expansion has consistently been higher than that of the whole economy. In 2019, the sector expanded at a pace of 3.5 percent, which was much higher than the world GDP growth rate of 2.5 percent. The tourist industry has a considerable bearing on India's overall economic performance. India is ranked as one of the top ten tourist destinations in the world. The World Travel and Tourism Council (WTTC) disclosed information indicating that the Indian tourism sector contributed INR 194 billion to India's GDP in 2019. Additionally, the tourism industry in India supported 87.5 million jobs, which accounted for 12.75 percent of total employment. However, for the past two years, due to COVID-19, the tourism sector worldwide, as well as in India, has faced huge losses and is in distress. So, it’s the right time to focus on developing tourism under different wings.

Introduction

With the growing population, increase in demand, and per capita income, tremendous pressure is put on the supply side, pushing them to rely on unsustainable practices to meet this existing and future demand. Compromising on sustainability has not only been responsible for climate change but also other negative environmental externalities. The modern agricultural corporate structure known as agribusiness, which can introduce sustainable and innovative technology into the agricultural sector, would pave the way for achieving all the sustainability dimensions, viz., social, economic, and environmental. With this expanding agribusiness sector, farmers can create a win-win alliance that maintains environmental harmony and financial success. There seems to be a huge scope to achieve sustainability goals well in advance by exploring the pathways with the help of the agri-business sector.

As the global population continues to grow, there will be an ever-increasing demand placed on the agricultural industry to provide more food as well as other raw materials. It is anticipated that farmers will need to produce 70% more food than is currently cultivated to feed up to 10 billion people by the year 2055 (Alexandratos & Bruinsma, 2012). However, the situation is aggravated due to shrinking cultivated areas, depletion of natural resources, higher production costs, fewer farmers, and climatic changes. We are in the middle of a perfect storm of social, economic, and environmental pressures on the food supply around the world. Along with the increasing production and productivity, it has to be taken care of that the natural resources and environment are not exploited indiscriminately. Agriculture is both a threat to climate change and a possible way to stop it. Therefore, sustainability in agriculture is the only way forward. This commitment rests not only with the governments but with all the players in the agricultural supply chain. A holistic approach that concurrently tackles issues of environmental integrity, social equality, and economic prosperity is what we mean when we talk about sustainability. Over the course of the previous few decades, its significance to businesses operating in virtually all fields has grown substantially.

Introduction

Farmers Producer Organisations are associations of farmers and other rural producers formed based on membership to advance the members' common interests, engage in mutually beneficial technical and economic activities, and foster and sustain relationships with other organisations active in the same economic and institutional sphere. Farmer Producer Organisations (FPO) are a way for farmers, especially those on the margins of the industry, to band together and establish a strong front against the myriad problems plaguing the agricultural sector, including a lack of capital, knowledge, and access to markets. To better organise farmers, increase their ability to pool their resources, and increase their competitive edge in the marketplace, the Indian government's Department of Agriculture and Cooperation (DAC) has determined that Farmer Producer Organisations incorporated under the Companies Act, 1956 are the best vehicle for doing so.

Background

More than 85% of India's 12.5 million agricultural households are classified as small and marginal farmers because they own less than two hectares of land. Every farmer, on average, owns 1.33 hectares of land. For farmers, investing in cutting-edge farming techniques and high-yielding inputs like seeds and fertiliser is simply not feasible in the current economic climate. They also don't make much money off their marketable surplus when they sell it off piece by piece. One strategy for farmers to reduce the cost of inputs and increase their bargaining position in the marketplace is to form Farmer Producer Organisations (FPOs).

Introduction

According to the “Mutually Aided Cooperative Societies (MACS) Act” of 1995 or as a “Farmers Producer Corporation” (FPC) under the “Companies Act” of 2013, a Farmer Producer Organisation (FPO) is often a society or company made up of farmers who are actual producers of a specific crop or commodities. Depending on the demands of the producers and the demand potential to adopt a value chain approach to boost farmers' and producers' economic and social benefits, these organisations are established at the cluster, block, district, or state level. The Indian government, state governments, development organisations, and central institutions have recently placed a greater emphasis on farmer-producer firms. Many of the nations’ Non Governmental Organisations (NGOs) have been aiding in the development of cooperatives and farmer-producer organisations.

Steps in formulation of FPOs

1. Preliminary Assessment and Need Identification

• Identify the group of farmers interested in forming an FPO.

• Conduct a preliminary assessment of the needs, resources, and aspirations of the farmers in the target area.

• Determine the type of products or crops that the FPO will focus on.

Introduction Farmer Producer Company (FPC) is a dynamic form of farmer collective that enables strong backward and forward linkage to the member farmer, leading to enhanced socio-economic status amongst the farming community. As of March 31, 2019, there were 7,374 FPCs with a total of 860.18 crore in Paid-Up Capital (PUC). With a budget of 6,865 crore, the Ministry of Agriculture and Farmers' Welfare announced in 2021 central scheme to support 10,000 farmer producer organisations. The Small Farmers Agribusiness Consortium (SFAC), the National Bank of Agriculture and Rural Development (NABARD), and f lagship programmes like the Agriculture Investment Fund (AIF) have all contributed to expanding farmers' access to capital (www.livemint.com).

FPCs are effective tools that give smallholder farmers more influence over the trading markets. This improves agricultural output and raises the revenues of small-scale farmers. To fully realise the potential of FPCs, cluster-based business organisations must acknowledge the inherent difficulties that they face and understand how to avoid common management mistakes.

Branding scenario of successful FPCs

There have been very few Farmer Producer Companies (FPCs) in India that have been running their businesses professionally and have become sustainable organisations over the years with well-established market linkages. Sahyadri Farmer Producer Company (Nashik, Maharashtra), Indian Organic Producer Company (Kerala), Bhangar Vegetable Producer Company (West Bengal), Madhya Pradesh Women’s Poultry Producer Company Pvt. Ltd. (Madhya Pradesh), Nachalur Farmers Producer Company Limited (Tamil Nadu), Maha Gujarat Agri Cotton Producer Company Ltd. (Gujarat), etc. are some of them, to name a few. A lot of sincere efforts have been put into strengthening their marketing linkages, viz. grading, processing, packaging, branding, distribution, etc. All the FPCs have been able to garner a significant market share because of their immaculate branding exercise. Their success has proved the fact that mere branding won’t guarantee large-scale consumer acceptance and it is brand positioning which is the required engine to drag the product towards consumers.

Introduction

Agri-entrepreneurship stands as a vital driver of socio-economic upliftment within society, offering a range of benefits that span from poverty reduction to rural development. In economies, where agriculture remains a cornerstone (Welter, 2011), fostering entrepreneurship in this sector can lead to substantial improvements in livelihoods, income generation, and overall economic growth (Watson, 2013). With support from relevant statistics and references, this article discusses the importance of agri-entrepreneurship.

Economic Growth and Job Creation: Agri-entrepreneurship contributes significantly to economic growth. According to the World Bank, agriculture employs over 25% of the world's labour force and accounts for a substantial portion of GDP in many developing countries. Encouraging agri-entrepreneurs to innovate and invest can lead to the creation of diverse agricultural enterprises, generating employment opportunities both on and off the farm. This, in turn, reduces unemployment rates and drives local economic development (Stam, 2016; Welter & Gartner, 2016).

Poverty Alleviation: Rural poverty remains a significant challenge in many developing nations, where a substantial portion of the population relies on agriculture for their livelihoods. Agri-entrepreneurship empowers individuals to break free from subsistence farming and embrace value-added activities. By fostering innovation, diversification, and access to markets, agri entrepreneurship enables farmers to increase their income and improve their quality of life (Shane, 2007). According to the International Fund for Agricultural Development (IFAD), smallholder farmers, when equipped with entrepreneurial skills, are better positioned to escape poverty cycles.

Introduction

The cultivation of flowering and attractive plants is referred to as floriculture, sometimes known as flower farming. Even though flowers have long been planted in India for a variety of purposes, including aesthetic, social, and religious purposes, the commercial floriculture sector is a relatively recent development.

The industry of floriculture has a great deal of untapped potential and has quickly become an essential part of modern life. The floriculture industry has developed into a business that is run for profit, has achieved significant market value, and is poised to realise favourable prospects. In India, the cultivation of blooming plants, including garden plants, cut flowers, foliage plants, potted flowering plants, and other types of blooming plants, is referred to as f loriculture. In today's world, flowering or ornamental plants are frequently used as part of several celebrations' decorations or as presents due to their versatility. They are also used as vital raw materials in the sectors of perfume, pharmaceuticals, and oil extraction. So, to start a floriculture firm in India, it is necessary to comprehend how agribusiness is used in its marketing and production.

Introduction

In the past, when television sets entered almost every household and there was a set of TV channels that broadcasted news, daily soaps, songs, etc., a channel named "Discovery" entered the market and soon became very popular among all age groups due to the scientific documentaries that it broadcasted and soon enough took over the market. It's obvious to the eyes that they created something unique, innovative, and possessing utility. The success behind the TV channel was that it tapped the uncontested market and hence had no other channel of its kind to compete with. They created a new niche, and based on this, they generated huge profits, success, and popularity. This strategy is very famous today in the name of the “Blue Ocean Strategy” introduced by Kim and Mauborgne (2005). The same strategy has immense potential in alleviating the agripreneurial ventures wherein the greater homogeneity of the products brings in an issue of increased competition. Hence, being creative and innovative on the part of entrepreneurs can open greater avenues for new products in the market, wherein the new product may benefit from the uncontesting environment in the market.

Introduction

Secondary agriculture is described as an enterprise-level productive activity that uses as raw material the primary product and byproducts of agriculture, as well as other biological resources available locally in its rural agrarian neighbourhood. The Government of India's Committee on Doubling Farmers' Income (DFI, Vol. IX, 2018) raised the issue of food waste and loss and proposed secondary agriculture. The committee classified secondary agriculture into three types: A, B, and C. Type 'A' avenues focus on adding value to primary agriculture production systems, either as input or output; Type B avenues focus on alternative firms that do not compete for resources; and Type C avenues focus on primary agriculture crop residues and wastes (Singh et al., 2022).

Sustainable development goals want to link primary, secondary, and tertiary sectors by using idle factors of production like land and labour. Promoting secondary agriculture can help reach these goals by increasing production in primary agriculture, capturing "value" in primary agricultural activities, and making businesses more money (Financial Express, 2019).

In this chapter, four opportunities for income augmentation in secondary agriculture, viz. plant nursery enterprise, herbal gulal farming, mushroom farming and beekeeping, have been explained.

Introduction

Agribusiness refers to the industry that deals with farming and the selling of agricultural products, including the cultivation of crops, their processing, and their distribution to retailers. Producing and distributing crops, agrichemicals, fodder, breeding, farm equipment, seed supply, raw and processed commodities of food and fibre, warehousing, transporting, packing, marketing, retailing, soil testing, and testing for nutrient deficiencies are all part of the agribusiness industry.

It's important for an excellent brand name to provide a solid basis on which a company can grow. Companies need to identify who they are trying to sell to. Will people have no trouble pronouncing it? The tongue shouldn't have to work too hard to say it. Can you pronounce the name easily? Your brand name needs to be audible to consumers. Have you tested the name's spelling ability?

Choosing what aspect of agriculture or agribusiness you want to enter is the f irst step. So, you can't make a call like this until you have a firm grasp on your company's long-term goals, operational strategy, and financial situation. You can still enter the market if you aren't an expert in the equipment, products, grains, soil, seeds, or plants involved; nevertheless, you should go in with your eyes wide open, a well-thought-out business plan, and a competent team.

Introduction

The smooth functioning of an organisation depends on its financial resources. For a newly established venture, it is important to accurately predict its financial requirements for the purpose of raising funds and assessing the profitability of the proposal. While the major investment in an organisation could be for short term and long-term purposes, there are multiple sources from which these funds could be raised. The conventional sources mainly include commercial banks and other financial institutions; non-conventional sources include lease financing, angel investors, venture capitalist firms, factoring, and bill discounting.

Finance is the basic requirement for the smooth functioning of any organisation. Finance is required to meet the short-term and long-term requirements of a f irm. While the short-term fund is required to meet day-to-day expenses, long term funds are required for the acquisition of long-term or fixed assets that would yield benefits in the future, financing the permanent part of working capital, and for the growth and expansion of a business.

The quantum of both finances depends upon the nature and size of the business’s organisation, and the sources from which one acquires these funds also have a multi-dimensional range.

Introduction

Business planning is required to meet the expectations of the future of any business and to meet the expected or unexpected obstacles that the future may hold. In the absence of a proper business plan, any business tends to fail. Not many are aware of the importance of preparing a good business plan. A good plan not only helps in planning as per the expected outcomes, but it also aids in seeking the right funds and bringing favourable investment into the business. However, the question remains: how to prepare an effective business plan. To aid in business planning, many use a Business Model Canvas. A Business Model Canvas or BMC (Figure 1), is a tool that represents different organisational components briefly in a very creative way. These components create the value of any organisation. The BMC is a strategy tool that also analyses the business situation of an existing business. There are nine components of a BMC, which are also referred to as the building blocks of an organisation. These are customer segments, Proposition, Channels, Customer Relationships, Key Resources, Key Activities, Key Partners, Cost Structure, and Revenue Structure. If BMC is prepared well, there are good chances that the Business plan will be developed well, which reduces the chances of failure in business. At the same time, it helps the business sail through the competitive environment smoothly and stay sustainable in the long run (Johnson, 2020).

Introduction

The global food system is anticipated to supply safe and nutritious food to a population that is expected to increase from 7.5 billion now to approximately 10 billion by 2050. Not only will there be more mouths to feed, but as incomes rise in rising and developing nations, demand for meat, fish, and dairy will rise as well (Brooks et al., 2019). Demand for agricultural commodities is rising rapidly as the world's population grows. Agriculture’s deep connections to the world economy, human societies, and biodiversity make it one of the most important frontiers for conservation around the globe (world wildlife).

Today's connected world has given entrepreneurs millions of new places to start small businesses, and the Internet has a lot of information to help them. Also, the internet has made it easier for business owners to connect with their peers, learn from their mistakes, and use their good decisions as a guide for their paths.

Structure of a business or legal framework

1. Sole proprietorship: A private company is a form where an individual is the exclusive proprietor of the business. It constitutes a straightforward setup where the owner is one person who manages the everyday operations of the company. In this case, the business is not regarded as an independent entity. Therefore, earnings and debts are merged into their personal accounts, which are assessed and taxed at the individual level.

Advantages of the sole proprietorship structure include

• Complete Control: As a sole proprietor, you have the right to make all business decisions and do not have to negotiate with other partners, managers or shareholders as in other structures.

• Easier Startup: The creation of a private company does not necessitate completing forms or remitting a state fee. This can ease the procedure and render it more affordable.

• Simple tax reporting: Because a business is not legally a separate entity, your income tax return includes the expenses and income of the business. As an added bonus, you can use business losses to offset your earned income, which can result in a higher taxable income.

• Privacy: Sole proprietors do not have to file annual reports with state or federal governments. Therefore, the company is not disclosed in the same way as in other structures.

Project Report

A project report is a written document associated with every investment. It includes the details upon which the project was evaluated and deemed viable. It encompasses information regarding economic, technical, financial, management, and production elements. It assists the entrepreneur in understanding the interests and aids in securing loans from banks or financial institutions.

The project report provides comprehensive details on the necessary land and buildings, yearly production capacity, production methodology, machinery and equipment along with their costs and technical specifications, raw material needs, electricity and water requirements, labor needs, market costs of the project, production, financial analyses, and the financial viability of the project.

Contents of a Project Report

1. General Information: The project report needs to incorporate details regarding the industry relevant to the project. It ought to present information about the industry’s historical background, present condition, challenges, and future outlook. It must include details about the product to be created and the rationale behind the product selection if the proposed organization is a manufacturing entity. It should indicate the demand for the product in local, national, and international markets. It should distinctly outline the business opportunities and provide explanations for initiating the business.