eChapters

Abstract

The agriculture and allied sector provide livelihood for 58% of India’s population. A large population and rising disposable incomes are key growth drivers. Growing external demand has increased its contribution to exports. The demand for processed food has also led to increasing requirements for agricultural inputs, hybrid seeds, machinery and fertilizers. Investment opportunities in storage infrastructure and agrochemicals also present immense opportunities. Organised retail has made India attractive for multinationals. The industry has a combination of multiple organisational forms, like associations, co-operatives, government (departmental) undertakings, foreign entities, trusts and companies, private and public. Unlisted companies encompass a vast range (private limited companies, family business, group-owned firms, and joint ventures are major actors.) The form and complexity of business ownership highlights Corporate Governance (CG) debate. Given this background, our objective is to understand the CG characteristics of unlisted agricultural and allied companies operating in India, the driving forces for improving CG practices, and the need for a policy framework in supporting good CG. We propose to examine the extent of control in the various types of entities and explore the mechanisms that contribute to the development of an efficient CG framework. Using data from the Prowess database, on 2,879 firms, from 2012-2013 to 2016-17, we analysed how CG problems are caused and how it can be alleviated. The results provide stakeholders and agri entrepreneurs with an overview of the policy and managerial issues that arise in the debate on CG of companies in this key sector. Finally, we conclude how the unlisted companies are likely to stimulate growth and development if CG mechanisms are enhanced.

Abstract

Trade Related Agreements on Intellectual Property Rights (TRIPS) widely affects the agricultural sector which is largely unorganised in India. At the same time this sector remains the bread winner for majority of the population of the country. The Intellectual Property Rights (IPRs) affect the extensive and intensive margins in agricultural trade. This paper draws attention of enterprises in the field of agricultural biotechnology which has genetic modification (GM) as one of its core activity. GM is of benefit in terms of value additive features but also of great concern for the community in conservation of biodiversity. Food & Agricultural Organisation (FAO), being aware of the pitfalls of implementing IPRs in agriculture, constituted an expert panel to study the issues pertaining to the sector. They came up with very clear directives to the FAO on the course of action. This paper aims to focus on this area to identify the micro-level dynamics of IPRs in agriculture and its effects on the rural enterprises in India. The impact of IPRs and its ramifications, the issues of agricultural productivity and its future trajectory, are to be understood from the perspective of an entrepreneur’s policy decisions. This will lead to identification of policies that would help in harnessing IPRs for the growth of Indian agriculture.

Abstract

Among the 29 Indian states, 14 are linked with 585 regulated mandis with electronic national agricultural market. Across the states, 7.35 million farmers with 53,163 commission agents are registered in these regulated mandis. Every year Government of India announces modified agricultural policies to safeguard the interest of the farming community. Amongst the policies, one of the mechanisms to protect the producers from price fluctuations is Minimum Support Price (MSP). While determining MSP, government takes into account cost of production, cost of living, as well as economic and socio-political factors. For the past two decades, it has been observed that one MSP graph is moving upward but still the farming community seems dissatisfied. The reasons behind MSP variation among states include offering bonus prices additionally with MSP by some states, due to variation in government procurement procedures and policies. As a result, MSP is playing an important role in manoeuvring of prices amongst the various state markets. MSP deviation provides chances for the private sector to take undue advantage and the farmers are adversely affected. The study analyses existence of deviation in mandi prices of staple food between two states from year 2007 to 2018. It will disclose whether centralized price system reduce the cost of government and aid the farmer to get fair valuation.

Abstract

Entrepreneurship essentially involves economic and dynamic activities, risk- assuming and idea generation that help in developing, organising and managing a business opportunity for profits. Entrepreneurship in agriculture is not merely confined to farm activities but also involves activities interlinked and interdependent with core and peripheral agricultural activities. Impediments in the pathway of agricultural entrepreneurship in West Bengal are characterised by fragmented landholding, low financial resources and thereby debt stickiness & dependence on short-term agricultural loan. Though disbursements of short-term credit have increased substantially, the rate of increase is low. For most farmers, insurance for financial or crop crisis is unheard or have hardly any implication. The paper tries to explain the performance of various agricultural insurance schemes in terms of coverage and the benefits being delivered in India and in West Bengal. The paper analyses whether the recipients consider the schemes as an effective risk mitigation tool or merely a habit of credit-dependence in West Bengal through a diffusion model. The paper concludes with the focus on possible entrepreneurial opportunities that may offer more customised agri-insurance policies, where regional disparities could be considered and individual interests be given little more importance.

Abstract

Packaging industry is considered to be one of the world’s largest industrial sectors. In the past few years, food processing has undergone several paradigm changes with respect to production, distribution, storage, processing and retailing. This increasing dynamism in the food industry, while on one hand placing a lot of challenges on the packaging industries, is on the other hand opening up opportunities for entrepreneurs to foray into food processing and also packaging industries and develop appropriate solutions in response to the needs of the market and environment. This study aims at exploring the state of packaging industry and packaging technologies in developing countries, with special emphasis on India, against the backdrop of increasing concern for prevention of food losses and therefore highlighting the need for new innovative ideas for food packaging. The authors posit that customer awareness about safety of processed food has given rise to tremendous possibilities of entrepreneurship opportunities in the area of safe and hygiene packaging. However market preferences, state reputations and cost benefit analysis play major roles in packaging of processed food products.

Abstract

More than one-third of food is lost or wasted in post-harvest operations in India. Decreasing the post-harvest losses (PHL) may be a sustainable solution to increasing food availability and improving farmers’livelihoods. As per Associated Chambers of Commerce of India, India loses approximately US$ 14.33 billion annually on account of PHL (ASSOCHAM, 2017). The objective of this study is to analyse the agricultural wastes that are produced in the value chain for a modern trade retailer, identify their causes, and discuss methods for minimising field wastages. A case study approach has been used to depict the agricultural value chain (vegetable segment). A field visit was conducted to a farmland and a privately operated Collection Center in Barasat area of West Bengal. The author discusses solutions towards minimising harvest wastages in the farm by focusing on waste reduction. Post-harvest wastages beyond the farm can be reduced by undertaking measures that focus on waste management. Going forward, adoption of technologies by farmers may lessen inefficiencies such as wastages and improve their income. Further scope for research lies in exploring joint interventions by private players, government agencies, non-profit organisations and entrepreneurs through public-private partnership models or through development of clusters for creating sustainable value chains and achieving greater profitability.

Abstract

Access to reliable and affordable irrigation is one of the most important enablers to increase agricultural productivity and income for farmers. An innovative Manual Axis Tracking Solar Pump model and its utility in providing affordable irrigation has been discussed in this paper. The proposed Manual Axis Tracking Solar Pump can increase output on an average 8%-12% more than fixed panel and is much cheaper than automated tracking. This paper deliberates upon the technical features that make the Manual Axis Tracking Solar Pump an advantage over its nearest competitor, the diesel pump. Government of India has already introduced various subsidy-based solar pump schemes and most of them are not popular because of low discharge issue. The low discharge issue can be solved by this proposed optimum tilt-based Manual Tracking Solar Pump, whose sustainable market penetration is suggested through various strategies in the paper, supported by case studies. The proposed entrepreneurship model not only opens a new era of agricultural business but also helps to reduce the GHG emissions.

Abstract

Sustainable development and success in any field, agriculture being one of them, goes hand in hand with Innovation. To tackle the current growing problems in the agricultural sector, and long-term sustainability of the agri-ecosystem, agricultural innovations are needed that might bring new products or processes or open up new markets, thereby optimising the use of the limited resources to attain maximum benefits. The authors discuss innovation from the perspective of two dimensions: Technology and Market to illustrate four different kinds of innovation - incremental, architectural, radial and descriptive. This paper deals with the concept of innovation in agricultural field [referred to as agri-innovation] using illustrations of two innovative products namely Dragon Fruit and Water Hyacinth, both of which have significant role in the agri-ecosystem of India. The introduction of Dragon Fruit in a new market is illustrated as an agri-innovation. Efforts by state and private sector of introducing Dragon Fruit, a popular production in South & South East Asia to Indian markets are an example of Architectural Innovation. Also the most common weed Water Hyacinth is considered to be used in news forms so that it can be modified as a new product for a new market. The paper thus documents the suitability of these innovative agri-products in the current Indian market scenario.

Abstract

The upsurge in global population rates has triggered a significant escalation in food demand across the world. This is accompanied by urbanisation and a pressing need for sustainable agriculture. In this context vertical cultivation of plants as well as breeding of livestock on vertically inclined surfaces, such as in skyscrapers and other high-rise buildings in urban regions has gained prominence. The dynamics of urban agriculture is captured through the case study of Urbagrow Aquaponics, an urban, aquaponic, soil-free, food garden based in Kolkata. The garden exhibits an assortment of aquaponic systems for growing a variety of vegetables as well as the tilapia and catfish. The systems make use of less water, require less work in man-hours and can grow vegetables in greater density than a traditional soil based food growing endeavour. A feasibility study has been conducted to explore the potential of scaling such a venture across myriad other high-rise buildings across Indian cities.

Abstract

This chapter will look at the major reasons why farmers in India are unable to take advantage of Agricultural profession as a mode of generating income and suggest ways to change this by employing new technologies. Agriculture has basic processes which require identifying the season for planting the seeds at the right time, watering the plants to the required level, undertaking maintenance for the different plants and then finally harvesting at the right time to ensure that the effort that has been put into the agricultural process results in useful output. In business terms the output when it is valued in terms of money, should enable the farming business to sell their output at a certain price that will enable them to pay off the money that has been used for setting up the crop for that cycle. This chapter will underscore the valuable contribution of remote sensing data in farming to enhance operational decisions. We will look at how low-cost technologies can be implemented into the existing agricultural extension activities and help farmers make better decisions that will enable them to be more business oriented. It is envisaged that incorporating high technology-based data into simple to understand terminology willhelp reduce the burden on farmers. This is due to the lack of knowledge but also due to the low volume of information that is possible to be fed to the farmers through the agriculture extension network in the country. However, due to the varied nature of farming in India it is difficult for extension officers to specialise but concentrate their efforts on widely utilised crops in an area. The following figure below explains in simple terms how the cycle of activities occur in a farmer’s world and where business decisions are taken that will have an impact on the profitability.

Building and honing up skills for managing any business is an important endeavor. Regardless of whether one is running a small business or a large company individual with good management skills are always essential. The role and structure of the farm business in modern agriculture is changing.

12.1 Supply Chain Management

Supply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies.

11.1 Time Management

One of the greatest assets business can have is an employee who uses his or her time to its fullest potential. Time is something that we can lose and never get back. People are always wishing they had more hours available in the day. The solution to this common problem is easier than one might realize. With a few minor adjustments in how to utilize time, people can change how to manage time. Proper time management can change life on a fundamental basis for the better.

Time management is not an instinct and instead, must be learned. . Using time wisely allows a person to complete tasks in an allotted time period, take on additional work, or spend more time with family. There are many things in an office environment that prevent effective time use.

Interruptions are time-wasters, especially since items one may consider urgent are not necessarily important. There is no way to pre plan the time and duration of an interruption, which may cause a loss of train-of-thought, difficulty concentrating, or complete memory lapse. Although it is difficult to avoid interruptions, there are methods for limiting their duration and impact the schedule.

Time is not like other resources which can be stored and used in the future, Time is a very special resource that you cannot be stored or saved for later use. Everyone has the exact same amount of time each day. Time not well used cannot be retrieved. Most people, feel like they have too much to do and not enough time. They blame lack of time for their poor finances, stress, bad relationships, and for not exercising their body.

Wise time management can help people find the time for what one desire, and for what they need to do. People need time to get what they want in life. If they wait for extra time to appear, they might lose the game of life. Through right time management, they can “create” the time they need, and not just wait for it to come. By planning time wisely, they will have more time to do more things.

10.1 Leading Self and Other

Leading up

In order to develop the ability to be a good Leader, people must learn to lead up with their leader, lead across with colleagues, and lead down with followers. Each of these skills draws on different principles. Leading up is the process of influencing a leader. The principles of leading up greatly increase the chance for success.

9.1 How to read a Balance Sheet

We know business is mainly concerned with the financial activities. In order to ascertain the financial status of the business every enterprise prepares certain statements, known as financial statements. Financial statements are mainly prepared for decision making purposes. But the information as is provided in the financial statements is not adequately helpful in drawing a meaningful conclusion. Thus, an effective analysis and interpretation of financial statements is required.

Analysis means establishing a meaningful relationship between various items of the two financial statements with each other in such a way that a conclusion is drawn. By financial statements we mean two statements:

8.1 Working Capital Management – I

Working Capital Management: Working capital is a measure of firm’s efficiency and its current financial health. Managing the operational capital is called as working capital management.

Every firm has short term assets and short term liabilities, they are also known as current assets and liabilities. It is calculated by subtracting short term liabilities from short term assets. The working capital ratio determines if the firm is financially stable, and has enough short term assets to cover its short term debts.

Working capital management ensures that the company has enough monetary liquidity to meet short term debts. Structuring an effective working capital management is a great way to enhance the income. Ratio analysis and management of individual components of working capital are two primary importance of working capital management.

Ratio analysis: Process of determining and analyzing numerical relationships in accordance to financial statements like balance sheets, income statements and cash inflow statements is known as ratio analysis. The primary purpose of ratio analysis is to appraise the operating and financial performance of an economic activity and determine its efficiency, profitability, liquidity and solvency. It also helps in getting a brief idea about comparative valuation by comparing ratios of different companies in the same sector.

Inventory Management: Inventory management involves overseeing the purchase of new items and managing the existing ones. It aims to create such a purchase plan that will ensure effective delivery of materials. Two most used inventory management strategies are ‘the just-in-time method’ and ‘material required planning.’ In former one the firm plans to receive items at the time of need rather than maintaining high inventory levels, and the latter one is based sales forecasts.

Cash Management: Cash management is process of collecting, managing and utilizing the cash inflow to optimize the short term financial stability. The key component in accomplishing this task is solvency. Successful cash management is useful when any unexpected demand for cash occurs out of the blue.

7.1 Investment Analysis for Agribusiness Projects

Financeis the Art and science of managing money. Financial Management is the manage rial activity concerned with the planning and controlling of the firm’s financial resources. Finance can be classified as Public finance, Private finance (Personal & Business), and finance for Non-Profit organizations. The objectives of financial management are Profit Maximization and Wealth Maximization.

The Cash flow is the net amount of cash and cash-equivalents moving into and out of a business.The types include Operating Cash Flows, Investing Cash Flows and Financing Cash Flows. Annuity cash flows are a series of periodic cash flows of equal amount. The time value of money is the change in the value of money as a result of change in the time duration. They are broadly classified into Future Value of Money and Present Value of Money.

Capital Budgeting is long-term planning form aking and financing proposed capital outlays. It is the process of making investment decisions in capital expenditures. The influential factors ofCapital Budgeting are Urgency, Degree of certainty, Intangible factors, Legal factors, Availability of funds, Future earnings, Obsolescence, Cost considerations, R&D projects and Competitivepressure.

6.1 Preparing for Negotiation

Introduction

When people hear the word Negotiation, they picture board meetings, lawsuits and favorable deal-makers sipping tea in a conference room. They are pictured being dressed in their expensive suits and handing dossiers to each other. In reality, we negotiate all the time. If we have to sight a negotiation, all you have to do is lift the window-pane and look out. For instance, have you ever decided where to dine with friends, or decided upon a leave and talked it out with your supervisor, or argued with your senior for a hike? These are all some common examples in our daily routine.

5.1 Descriptive Analysis for Marketing Decisions

Measures of Location

In the previous chapters it was discussed how to understand and reach customer. Now lets explore the numerical data through their properties to understand customers and markets. Descriptive statistics is analysis of data that helps describe, summarize data in a meaningful so that the business people get new and deeper insights into the problems and situations. For example a buying pattern for your products might emerge and there could be difference based on gender. This will help the business people to come out various strategies separately for each gender. Data can be easily handled with spreadsheets. One of the very widely used spreadsheets by many business organisations is Microsoft - Excel. MS-Excel is used for various purposes from just maintaining records to finding out relationships between databases. Some organisation use this spreadsheet software for generating memos, track sales trends and other business data. Lets in this chapter explore how excel sheet can be used to perform basic data analysis that can help us to get greater insights.

4.1 Formulating Marketing Strategy for Agribusiness

STP – SEGMENTATION, TARGETING & POSITIONING

STP is the core concept which is followed while building a brand. A marketer decides a product which he is about to market first, and then goes about building a brand by deciding upon the specifications.

SEG MENTATION

Segmentation is process of dividing customers into a set of homogenous groups customers in general can be divided into groups based on geographic (or) location.

The below given chart like the major segmentation variable considered for consumer and industry market.

Agri Business Market Segmentation

The below given charts illustrates lists of segmentation variable that is customized for Agribusiness market. The following variable were suggested by the quarter Mr. Dute and were published in his base on principles of management in agribusiness segmentation based on physical attributes