Oorjagram LTP Report
Oorjagram LTP Report
Oorjagram LTP Report
INTRODUCTION
Davis and Goldberg coined the term "agribusiness" in 1957 in a paper presented at the
Boston Conference on Distribution as "the sum total of all operations." involved in food
and fibre production and distribution”, which described three interconnected sectors in a
global food system. It is a three-part system comprised of (i) the agricultural input sector, (ii)
production sector, and (iii) service sector of processing and manufacturing (Sonka and
Hudson, 1989). Agribusiness is the production of agricultural products. Crop production,
seed supply, agrochemicals, farm machinery, distribution, processing, marketing, and
retailing of agricultural produce to final consumers are all included. Agribusiness is a simple
portmanteau of agriculture and business within the agriculture industry, referring to the wide
range of activities and disciplines that modern food production encompasses. Agribusiness
has grown from agriculture to become a vast and complex system that extends beyond the
farm to include all those involved in bringing food and fibre to consumers. The food and
agribusiness sector is made up of many small and medium-sized businesses, as well as a few
large corporations and multinational corporations, all of which compete with one another at
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every stage of the supply chain. In order to compete and strengthen growth, a competitive
food and agri-business sector requires effective innovation and business development. Fruits,
vegetables, legumes, spices, meats, poultry, and fisheries, milk and dairy products, alcoholic
beverages, grain processing, and specialty products such as confectionaries, cocoa products,
soya-based and high protein foods, and mineral water are all produced in India. The Indian
agribusiness industry is estimated to have generated around $245 billion in 2015 and has
grown at a rate of 5.7 percent per year between 1991 and 2015. According to the Ministry of
Micro, Small, and Medium Enterprises, approximately 51.06 million micro-small-medium
enterprises employ approximately 117.2 million people. The food and agribusiness industry
employs approximately 6.9 percent of those employed in this sector.
Agribusiness includes not only those who farm the land, but also those who provide inputs
(such as seed, chemicals, and credit), process the output (such as milk, grain, and meat), and
manufacture food products (such as ice cream, bread, and breakfast cereals), and transport
and sell the food products to consumers (restaurants, supermarkets). As new industries have
emerged and traditional farming operations have grown larger and more specialised, the
agribusiness system has undergone rapid transformation. A company that conducts business
with farmers is also classified as being in the agri business sector. These transactions could be
in the form of goods or services. Similarly, agricultural suggestions or consultancies, seeds,
pesticides, and agricultural equipment supply all fall under the category of agri business.
Similarly, agriculture loans, agriculture insurance, agri product stocking, transportation,
packing, processing, and distribution all fall under the same sector.
The liberalisation policy and the establishment of the WTO have increased opportunities for
globalising agriculture and allied sectors. The agribusiness sector encompasses many
agricultural activities under one umbrella, such as the integration of agricultural inputs,
agricultural productions, agro processing, agricultural marketing, and trade, all of which add
value to agricultural produce. Thus, Agribusiness refers to farming as well as all of the other
industries and services that comprise the supply chain from farm to consumer, including
processing, wholesaling, and retailing.
IMPORTANCE OF AGRI-BUSINESS
Commercial agriculture and agribusiness necessitate specialised production, postharvest
management, expansion of processing, transportation, and packaging activities, and product
positioning in both domestic and international markets. Agricultural economists described
agribusiness's unique characteristics and needs in the 1980s, and it was widely recognised as
an important new field.
There are five ways in which agribusinesses differ from other types of businesses:
1) The distinct cultural, institutional, and political aspects.
2) The uncertainty of production
3) Alternative political goals and forms of intervention.
4) The public sector's contribution to technological development.
5) The diversity of competitive structures in the agribusiness sector.
Agriculture is rapidly changing into a business opportunity, and with these trends, food is
being exported to national and international markets after harvesting the crop using technical
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methods for processing, packaging, and transportation. However, by failing to take
appropriate measures in our country, nearly every year, 20 to 30 % of crop produce is wasted
due to factors such as floods, pests –insects, improper handling, storage, processing, and
transportation of agricultural produce, and failure to use proper methods during reaping the
crops. Similarly, vegetables and fruits are wasted 30% of the time due to a lack of processing
and storage facilities. However, changes in business policies and international business
organisations entering India's food processing market have resulted in an overall boost to the
country's agriculture sector. Many people in our country are investing in poultry, aquaculture,
and fruit and vegetable processing, which is proving to be a profitable business with the use
of advanced technology and managerial skills. As a result, people are investing in the fields
of production, transportation, processing, and marketing.
Government, private, and other organisations are looking for qualified agribusiness
managers, and agricultural universities and other agricultural education institutions have
taken on the responsibility of training students with the necessary business management skills
for the agribusiness industry. Food consumption is also driving the expansion of the
agricultural and agribusiness sectors. India is expected to surpass China as the world's largest
country. With the world's youngest population, the food and agriculture sector is expected to
triple by 2020, rising from $328 billion to $895 billion in just six years.
Huge opportunities in agribusiness are attracting investments both in primary production and
in food processing and distribution. Organized retail is growing at a 35% CAGR, and there
are numerous input industries that all require more capable people to manage growth. This
expansion will invariably result in major structural shifts in the management of agribusiness
enterprises, as well as a slew of new opportunities, beginning with the aggregation of land,
most likely through lease Arrangements, with the goal of improving production efficiencies –
resulting in the expansion of the farm mechanisation business, micro irrigation, and supply
chain reorganisation. Investments in food processing, cold chains and Agri infrastructure.
In the processed foods, beverages, nutrition, and plantation sectors, there is an increasing
number of new companies in the billion-dollar club. Several such companies have indicated
an interest in agribusiness and an appetite for investment in this sector through inputs and
farm mechanisation. Agriculture and the allied sector have grown satisfactorily in recent
decades, but due to a variety of factors, agricultural growth is currently relatively stagnant.
Reports from various sources always reveal the sector's bottlenecks, which hold us back in
terms of growth and development. Agriculture must be improved from the time crops are
harvested until they reach the consumer's fork. The majority of farmers and small business
owners are unaware of the standard practises required during pre-harvest and post-harvest
operations, which undoubtedly play an important role in overall productivity.
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In addition to these factors, the growing global population has created a chasm between
market demand and supply of agricultural products. There is a need for a market and
consumer-oriented education system that achieves the goal of economic growth and
development through the generation of income and employment. Agribusiness management
is a relatively new discipline in the agricultural education system, but it is quickly gaining
popularity among students and academics. The agribusiness programme is designed to
develop management workforce to serve the agricultural industry, which is a good option for
students who want to work in the corporate sector.
A proper management of all agribusiness activities is required, from planting the seed to
receiving the actual reward at the market place. These issues are expected to be addressed by
agricultural management education, which has the untapped potential to spark a second wave
of agricultural revolution.
Recently, The Indian Council of Agricultural Research (ICAR) has recommended to the
Planning Commission of India a proposal on “attracting and retaining rural youth in
agriculture (ARYA),” which has agreed to include it in the 12th five-year plan in order to tap
the youth potential in farming while also preventing their migration to urban areas. The
proposal for the pilot project was recommended to the ICAR by
Committee chaired by K. Narayana Gowda, which was formed to suggest measures to be
taken to attract youth to farming. The committee recommended that a Rs. 200 crore pilot
project be launched in 30 different locations across the country to encourage rural youth to
stay in agriculture.
Agriculture's prospects are being harmed as a result of youth abandoning farming and
migrating to cities in search of menial jobs.
The only way to attract them to agriculture is to make it a profitable business. The proposed
project aims to not only make farming a profitable venture, but also to triple farmers' incomes
in five years. According to the committee report, efforts will be made under the proposed
project to increase farmers' incomes through various technological interventions tailored to
local needs and fostering collaboration among local research institutes, administrative bodies,
and farmers.
CHAPTER 5 - SCOPE OF GROWTH IN AGRI-BUSINESS
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India is a reservoir of agrobiodiversity and other natural resources that meet the needs of all
types of raw materials for various small scale industries. Agribusiness is acting as a centre of
attraction and retaining rural youth in farming 301 industries include handmade items,
sugar mills, food processing, and dairy industries. Agribusiness opportunities can be
explored through research and development in various states, such as agricultural produce
production, harvesting, processing, marketing, storage, and transportation. The
agribusiness sector has the potential to contribute to a variety of social and economic
development goals, such as job creation and income generation, Poverty reduction, as well as
improvements in nutrition, health, and overall food security in the country Agribusiness
growth propels industrial growth by supplying massive amounts of raw material to agro-
based industries such as sugar, textiles, food processing, cigarettes, paper, and so on. Food
production in India is expected to double in the next ten years. As a result, there are
numerous opportunities for investments in food and food-processing technologies and
equipment, particularly in canning, dairy and food-processing, specialty processing,
packaging, frozen food and thermo processing, cold chains, and the food retailing sector.
Agro industry opportunities in India currently favour the growth and development of
medium-scale industries that match current production levels and market distortions.
In India, to promote agro-industries and provide people living in rural areas with new
employment opportunities close to where they work and live. However, unlike in the West,
where much of this was heavily mechanised due to labour shortages, we require labour
Through the use of technology. In many developed countries, the food processing and agro-
industry strategies were primarily aimed at increasing farmer incomes rather than creating
rural employment.
Here, are some highly potential areas of farming for development of agri-business –
(i) PRODUCTION
1. Production of high-yielding seeds
2. Production of high-quality planting material, including use of tissue culture methods
of micro-propagation
3. Nurseries, including hardening nurseries
4. Organic farming
5. Production of microbial cultures and vermicomposting
6. Floriculture
(ii) PROCESSING
1. Fruit and vegetable processing, including dehydration, canning, aseptic packaging,
processing of underutilized fruits, and processing for other products like grape raisin,
air-dried fruits, fruit toffee, bleached dry ginger and spices’ powders.
2. Processing of maize for starch and feed through improved mini/ small mills and dry
milling plants.
3. Processing of millets for various purposes, including malt from finger millets and
RTE (Ready-to-Eat) products.
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4. Processing of sugarcane for various jaggery products like spiced jaggery, powdered
jaggery, and jaggery cubes.
5. Processing of herbal and medicinal plants.
6. Processing of dairy products.
7. Processing for poultry products, including poultry dressing.
8. Processing of livestock products and livestock wastes.
(iii) INFRASTRUCTURE
1. Cool chain infrastructure, including cold stores
2. Storage and warehousing
3. Specialized transport services
4. Packaging infrastructure, including pack houses, and
5. Agri-clinics and service centres
(iv) TRADE
1. Procurement through contract arrangements, including contract farming
2. Retailing
3. Supply chain management, and
4. Capacity building, including human resource development in agribusiness.
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1. In the context of today's changing and complex situations, a pleasant atmosphere in
the agricultural sector must be created.
2. Government officials and farmers should be unanimous in terms of the need and
advantages of supporting independent young people or private enterprises to enhance
farmers' productivity and profitability.
3. In those sectors where private entrepreneurs work has been assigned, the government
should stop providing free services.
4. In order to ensure high standards, the technical abilities and capabilities of
entrepreneurs must be assessed.
5. The quality of services and charges collected by the farmers in order to avoid
exploitation should be monitored by the monitoring agency.
6. The Agricultural Extension Agencies and farmer organisations should make the
services available to farmers more widely available in order to promote the
entrepreneurs. Such advertising can improve the credibility of business services.
7. By introducing various concessions and incentives, the Government should encourage
entrepreneurs.
8. Contractor networks can be set up to share experiences. These networks can also link
research institutions and universities closely to get to know the latest findings from
the research and to find solutions for their field problems.
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THE FUTURE OF AGRICULTURE & AGRIBUSINESS
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commerce strategies. Farmers' perceptions of adoption are also important as
agribusiness firms develop strategies for conducting e-commerce with their farm
customers.
Currently, the majority of the elements of e-Agribusiness have been around for years
in practise and literature. Nonetheless, their unique application in the context of rapid
technological change necessitated the creation of definitions for the following terms:
• E-Business: a business that uses computer media and has at least two players.
E-business is concerned with management and strategy. Subsets of e-Business
include e-Marketing, e-Commerce, and e-Agribusiness.
• E-Marketing: The process of transferring elements of marketing strategies
and activities to a computerised, networked environment such as the Internet.
E-Marketing, in more detail, is the strategic process of creating, distributing,
promoting, and pricing goods and services to a target market via the Internet
or digital tools.
• E-Commerce: Internet-based business that involves a financial transaction or
a legally binding commitment to exchange goods/services. As illustrated in the
diagram below, e-Commerce is a subset of both e-Business and e-Marketing.
Continuum of e-Business.
• Agribusiness: encompasses the agricultural input sector, the production
sector, and the processing manufacturing sector: farmers, farm input providers,
farm output processors, food product manufacturers, and those who transport,
sell, and/or prepare food products.
• E-Agribusiness: An e-Business that focuses on agricultural goods or services.
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company that could or may not use them for a productive enterprise. Companies are
now starting to understand that the advantage of the first mover should not be a
priority. The two main business models for an e-Business: the model based on
improvement and the business model based on revenue. Improvement-based
companies use the internet to save internal efficiency, increase marketing efficiency
and change the attitudes of consumers.
These are indirect benefits because they do not immediately result in a new sale or
generate revenue and Customers. Cost efficiency and cost savings are often the main
reasons that e-commerce companies attempt. The category and brand construction,
expanded service and product improvement via online information or products form
another important reason for improving internet enterprise. On the Internet, income-
based business models are based on the provider approach or on the user. The
provider models have fees paid by other companies to access the site – content
sponsorship and retail alliances are excellent examples. They have to pay the website
fees.
1) Pickup & Drop marketplace are a model in which sellers frequently partner
in leading markets in order to build a dedicated online store in the latter.
Sellers play an important role in managing inventory and driving sales in this
situation. They take advantage of the high traffic on the marketplaces'
websites and gain access to their distribution network. However, the sellers
have little influence over pricing and the customer experience.
2) The stock in its own right is a model in which the E-Stakeholder owns the
stock. The model delivers better customer experience and satisfaction after
purchase. Due to ready data on the inventory, location, supply chain and
shipments it provides smoother operations effectively resulting in better stock
control. There are, however, risks of possible markings being reduced and
working capital tied in to the stock.
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SCOPE OF E- AGRIBUSINESS – Here are some the areas of huge scope for
agribusiness working through an e-commerce model.
3) Customer Service Rendered - The costs incurred for customer and after-sale
services typically account for at least 10% of e-agribusiness operating costs.
Many services may be made available online, as well as improvements in
product and service quality.
5) Easy access - With the help of the internet, small and medium-sized
businesses can also provide information on their products and services to all
potential customers worldwide at a low cost.
6) Direct link - Companies can establish a direct link to customers and critical
suppliers or distributors via the internet in order to complete transactions or
communicate trade information more easily.
BARRIERS IN E-AGRIBUSINESS - Here are some the hurdles that can be faced in
agribusiness working through an e-commerce model:
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2) Web connectivity problems.
3) Problems with language.
4) Electricity load shedding.
5) Persistence of intermediaries in the agricultural supply chain.
Here are a few ways through with E-Agribusiness companies can accelerate their
growth in the market –
1) Customers' expectations shift rapidly as they move from the research to the purchase
to the fulfilment stages. Companies in the e-commerce industry must understand these
change drivers and adapt their offerings accordingly.
2) With changing technology, e-commerce companies must constantly upgrade their
offerings. For example, now that mobile shopping has truly arrived, they must create
simple mobile apps for their websites. They must ensure that their websites are fast
enough to conduct fast business, especially during sales, deals, and discounts.
3) Customers' expectations shift rapidly as they move from the research to the purchase
to the fulfilment stages. Companies in the e-commerce industry must understand these
change drivers and adapt their offerings accordingly.
4) They should also provide adequate after-sales service and support. Online product
reviews and ratings, videos, and more sophisticated sizing and fitting tools should be
available.
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5) The e-Commerce industry is experiencing procurement and transportation issues due
to a lack of an integrated end-to-end logistics platform. Because of the proliferation of
low-cost smartphones, online purchases from Tier 2 and Tier 3 cities are expected to
skyrocket.
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Farm to Customer Model (F2C): This business model enables farms to sell goods
and services to customers or individuals via the Internet. The agents are in charge of
price comparison.
Customer to Customer Model (C2C): Both the supplier and the buyer are
individuals.
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a) A CONCEPTUAL MODEL OF AGRI-FOOD E-COMMERCE (AE)
MODELS: B = BUSINESS; C = CUSTOMER; O2O = ONLINE TO OFFLINE.
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Agri e-commerce, particularly in developed areas, is at an upcoming stage of development.
The commercial opportunity and potential social impact, on the other hand, are undeniable.
Aside from Agri-e-commerce companies and mobile operators, governments and investors
can take advantage of this opportunity to drive growth in the agricultural sector and improve
farmers' livelihoods. Today, the majority of customer journeys in these segments begin
online via search engines, social media recommendations, and so on. Online reviews or
digital advertisements are two examples.
One of the few remaining sectors where e-commerce has yet to have a significant impact is
agriculture. There are several reasons why: the Agri-subsidiary chain is often controlled by
well-initiated (intermediaries) intermediaries; the logistical challenge of handling products
that are perishable is difficult; and, given the inconsistent physical appearance of fresh
products, especially fruit or vegetables, most consumers still prefer to buy food online rather
than online.
The overall goal of this study is to provide an overview and opportunities for improvement in
the emergence of e-commerce in India's agri-business sector. For this, I created a
questionnaire with a total of 25 questions pertaining to a specific customer's perspective
when purchasing an agricultural product through an e-commerce website dealing in Agri-
products. All of the survey questions were based on the individual customer's experience and
input, which he or she provided based on their knowledge of the subject.
SCOPE OF STUDY
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Farming is a personal endeavour. So, it is likely why agri retailers prefer the traditional
approach of meeting with a farmer and walking through their fields over modern retail
solutions such as e-Commerce. It just appears to be a bit more personal and face to face.
Now due to its online nature, e-Commerce holds a potential of revealing more about the
farmer and their operation than just a simple conversation. Not only this, one could even add
detailed data on their crops, fields, planting history, financial estimates, and much more to an
online record of their purchasing history and personal information.
There is a lot of room for e-agribusiness in agriculture, particularly in horticulture and
processed goods. Mango, grapes, spices, and other fruits and vegetables are in high demand
on the national and international markets. To increase profits, products such as sugar, tea,
processed agricultural products, dairy products, beverages, and so on can be sold online.
Farmers receive up-to-date market information and can sell their produce via electronic
means.
The evolution of e-commerce in the agribusiness sector could be slow due to factors such as
the rate of adoption of the internet as a business tool by producers and consumers; their scale
of operations; and the size of their agri-business market. The evidences suggest that large-
scale producers are migrating online. Another consideration is the magnitude of the benefits
accruing to e-commerce participants.
Some of the major areas that get covered under the head of scope of E-Agribusiness are as
follows:-
Indian agricultural products are marketable in other countries.
Processed agricultural products can be sold online for a high profit.
Farmers receive an update on the Agri market.
MSAMB, for example, provides information on the prices of farm goods.
Basically, the scope of this research is to find out the current issues related to Agri-business
market in e-commerce platform and what all recommendations and ideas could probably be
introduced in order to increase the level of efficiency and productivity in the agricultural
business over online platform for the benefit of all the respective stakeholders involved in the
business from small-scale to large-scale farmers, customers and government authorities
concerned.
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This study also highlights some of the major issues that people face when doing Agri-
business on an e-commerce platform. Computer illiteracy, ignorance about e-commerce,
problems with internet connectivity, language barriers, load shedding of electricity, and the
persistence of middlemen in the agricultural supply chain are some of the commonly
addressed hurdles in India with regard to E-agribusiness.
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purchase without ever setting foot in a store. So, we can say that e-commerce does hold a
great amount of potential of benefitting its stakeholders with regard to Agri-business in
both B2B and B2C markets.
RESEARCH METHODOLOGY
The collection of primary data for this study was accomplished by floating a detailed
questionnaire with a total of 25 questions. This questionnaire was created using Google
Forms and distributed across all major social networking platforms such as Facebook,
WhatsApp, Instagram, and LinkedIn. Filled by a public base of customers from various
regions and demographic locations of India who order and purchase Agri-products through an
Agri-business website.
Even after accounting for the heterogeneity in responses due to the large population base, all
subsets of the frame are given equal weight.
In this study, we used nine parameters to evaluate the website and app design, efficiency,
responsiveness, reliability, empathy, assurance, privacy, fulfilment, satisfaction, and loyalty.
Scaling was done on a scale of 1 to 5. (Strongly Disagree, Somewhat Disagree, Neutral,
Somewhat Agree, Strongly Agree).
Individuals ordering and obtaining agri-business services through an online e-commerce
platform were used for data collection and respondent selection for the target audience.
1. Mean
2. Median
3. Mode
1. T TEST
2. PAIRED SAMPLE T TEST
3. LINEAR REGRESSION
4. ONE WAY ANNOVA
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CONCEPTUAL FRAMEWORK OF THE STUDY
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QUESTIONNAIRE USED FOR RESEARCH
E-commerce in Agri-business
As a platform, e-commerce offers a vital opportunity to reduce costs and stimulate demand in
the agri-business sector. This could be the new and effective way for small- scale farmers to
access the market with a wide exposure. Through the introduction of e- Commerce as an
online platform, smallholders can sell most of their products at higher prices than before as
the price squeeze of intermediaries gets eliminated.
1. Name *
2. Age *
a) 18 Above
b) 18-25 years
c) 25-45 years
d) 45 above
3. Gender *
a) MALE
b) FEMALE
c) PREFER NOT TO SAY
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4. Region where you stay in India? *
a) CENTRAL INDIA
b) EAST INDIA
c) NORTH INDIA
d) NORTHEAST INDIA
e) SOUTH INDIA
f) WESTERN INDIA
a) URBAN AREA
b) RURAL AREA
c) SEMI-URBAN AREA
d) PREFER NOT TO SAY
6. Are you aware of any e-commerce companies dealing in agricultural products online? *
a) Yes
b) No
c) Maybe
a) 2% - 5% of Total Income
b) 7% - 10% of Total Income
c) 12% - 15% of Total Income
d) 17% - 20% of Total Income
a) Once in a week
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b) Once in a month
c) Twice in a month
d) Rarely
9. Who do you think will be benefited the most through conducting Agri- business in an E-
commerce platform? *
a) Farmers
b) Small scale retailers
c) Customers
d) Government
e) All of the above
10. Do you think Indian government should focus more on technology adoption with respect
to agricultural business? *
1 2 3 4 5
11. Will you buy agricultural products directly from farm without any middlemen through an
e-commerce website? *
1 2 3 4 5
12. As a customer when you shop from a website dealing in Agri - products what would
matter the most to you? *
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b) Ease of understanding
c) Well Organized content
d) Additional tutorials on how to use a product
13. Do you agree that an Agri products website should only provide information that is
relevant and with a high level of detail and depth? *
1 2 3 4 5
14. Do you think the content on the website dealing in Agri products needs to be updated at
regular intervals? *
1 2 3 4 5
15. Do you feel the content on an Agri products website must be trustworthy and reliable? *
1 2 3 4 5
16. The website dealing in Agri-products must provide information about its activities, and
the participating firms for both buyers and sellers knowledge? *
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1 2 3 4 5
17. The website dealing in Agri-products should must look attractive, the diagrams, images,
use of color, and fonts must be suitable, and symbols be readily identified? *
1 2 3 4 5
18. The layout of the website site dealing in Agri-products must be well organized, and have a
clear structure which should allow to find the right things at first sight? *
1 2 3 4 5
19. The products and services should be delivered within the time promised once you place
your order from an Agri-product website? *
1 2 3 4 5
20. The quality and quantity of the products that you would receive should match the
description that was made on the website? *
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1 2 3 4 5
21. Do you feel secure while making payment on websites dealing in Agri-products regarding
your financial information? *
1 2 3 4 5
22. Do you think your personal or financial information is not being shared with other
websites dealing in Agri-products? *
1 2 3 4 5
23. Do you feel interacting with a Chabot while purchasing a product on an Agri based
website affects your buying experience? *
1 2 3 4 5
24. Do you feel the reviews associated with the Agri- product affects the customer buying behavior? *
1 2 3 4 5
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Strongly disagree strongly agree
25. Do you feel In general, the websites dealing in Agri-product selling inspires confidence in you
while shopping? *
1 2 3 4 5
Count of Age
60
50
40
30
20
10
0
18 Above 18-25 years 25-45 years 45 above
From the line plot chart attached below we can infer that most of the responses are
exceeding the neutral value i.e. 3 so, obviously the trustworthy and reliable content in
websites based on Agri-products has a positive significant effect on the buying
behaviour of the customers.
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Chart Title
12
10
8
6
4
2
0
0 2 4 6 8 10 12
From the bar chart attached below we could infer that more than 65% respondents
were aware about the companies and business dealing in selling of agri-products
through online mode. Whereas, more than 25% respondents were not aware about
such websites.
From the bar chart attached below we could infer that the individuals purchasing the
Agri-products through e-commerce websites usually spend 2-5% of their total
income, which is substantially less. Effective measures and ideas need to be generated
for better reach amongst the general public with increased promotional activities and
strategies.
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Count of Proportion of Income Spend on Buying
agricultural products through an e-commerce website?
2% - 5% of Total Income
0 10 20 30 40 50 60 70 80
From the line chart inserted below, we could clearly observe that most of the
responses are exceeding the neutral value i.e. 3 so, with a value of 4 so we can infer
that the reviews associated with the Agri- product does affect the customer buying
behaviour.
Chart Title
6
0
1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 96 101
From the line chart inserted below, we could clearly observe that most of the
responses are at the neutral value i.e. 3 and above so, we can infer that the factor of
websites dealing in Agri-product has not reached its optimum level of awareness and
few of the responses are above 3 so we can say that people will gain more confidence
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in the due course of time and they are likely to get inspired by the e-commerce
emergence.
Chart Title
6
0
1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 96 101
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elsewhere. The techniques can be applied to plants, animals, and microorganisms of
any kind, but this review will focus solely on microorganisms and only briefly
mention animals. The ideas associated with genetic engineering and food made from
transgenic crops are the major and most contentious social and environmental
consequences of agricultural biotechnology, whereas varieties produced without
genetic engineering are ignored. In any case, they are more difficult to identify, and
there is little information about them.
1. Genetic engineering involves inserting DNA fragments into cell chromosomes and
then using tissue culture to regenerate the cells into a whole organism with a genetic
composition that differs from the original cells. It is also called rDNA; transgenic
organisms are manufactured.
2. Cell, anther, pollen or other tissue culture is manipulated by tissue culture. Thus, cells
live in laboratory or become whole, live and grow organisms for extended periods;
genetically engineered cells can be transformed into genetically modified organisms
by tissue culture.
3. Embryo rescue involves the placement of embryos with transferred genes into tissue
culture to complete their development into whole organisms. Embryo rescue is
frequently used to facilitate “wide crossing” by producing whole plants from embryos
produced by crossing two plants that would not normally produce offspring.
4. Somatic hybridization involves the removal of cell walls from different organisms and
the direct mixing of DNA from the treated cells, which are then regenerated into
whole organisms via tissue culture.
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PROBLEMS FACED BY SMALL-SCALE FARMERS IN ADOPTING
BIOTECHNOLOGY FOR AGRI-BUSINESS-
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Furthermore, they are a product that is likely to be commercially viable in the long
run once adequate information is made available to producers and farmers through
experience and communication.
Bio fertilizers are biologically active products or microbial inoculants, which are
formulations containing one or more beneficial bacteria or fungal strains in easy-to-
use and cost-effective carrier materials that add, conserve, and mobilise crop nutrients
in the soil. In other words, a bio fertilizer is a substance containing living
microorganisms that, when applied to seed, plant surfaces, or soil, colonise the
rhizosphere or interior of the plant and promote growth by increasing the availability
of primary nutrients to the host plant. Organic fertilisers contain organic compounds
that, either directly or indirectly, improve soil fertility. Similarly, the terms bio
fertilizers and green manure, manure intercrop, and organic supplemented chemical
fertiliser should not be used interchangeably.
One of the new millennium's new challenges is to obtain more and more agricultural
food production from shrinking per capita arable land. Bio fertilizers have significant
long-term environmental implications, counteracting the negative effects of
chemicals. At the farm level, the benefits of increased technology use can be spread to
other farms and sectors through less water pollution than chemical fertilisers and, to a
lesser extent, the creation of organic manures. The benefits of new technology
resulting from the prevention of soil damage may not be apparent in a short period of
time, in contrast to chemical fertilisers, which produce immediate results. Liquid bio-
fertilizers are special liquid formulations that include not only the desired
microorganisms and their nutrients, but also cell protectants or chemicals that promote
the formation of resting spores or cysts for longer shelf life and tolerance to adverse
conditions.
Bio fertilizers, also known as microbial inoculants, are cultures of certain soil
organisms that have been artificially multiplied in order to improve soil fertility and
crop productivity. Although the benefits of legumes in improving soil fertility have
been known since antiquity, and their role in biological N-fixation was discovered
more than a century ago, commercial exploitation of such biological processes is of
particular interest and practise. For application to seed, latent cells of efficient strains
of nitrogen fixing, phosphate solubilizing, or cellulolytic microorganisms are used,
Soil or composting areas with the goal of increasing the number of such
microorganisms and accelerating those microbial processes that increase the
availability of easily assimilated nutrients by plants.
Due to the heavy use of chemical fertilisers and harmful pesticides on crops in
modern agriculture, the sustainability of the agriculture systems collapsed, the cost of
cultivation skyrocketed, farmer income stagnated, and food security and safety
became a daunting challenge. The indiscriminate and unbalanced use of chemical
fertilisers, particularly urea, as well as chemical pesticides and the scarcity of organic
manures has resulted in a significant reduction in soil health.
Here is a list of bio fertilizers that can be commonly used in agricultural field –
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1) N-fixing Bio fertilizers (NBF): Rhizobium (Family: Rhizobiaceae)
2) Azotobacter (Family: Azotobacteriaceae)
3) Azospirillium (Family: Spirillaceae)
4) Herbspirillum
5) Acetobacter
6) Azolla Family: Azollaceae
7) Blue Green Algae (BGA) / Cyanobacteria,
8) Chlorococcales, Mastigociadaceae, Nostocaceae, Oscikatoriaceae,
Oscillatoriaceae, Rivularia-cease, Scytonematoceae, Stigonemataceae
9) Phosphate Solubilizing Microorganisms and Mycorrhizae
10) K-Solubilizing Bacteria
The Government of India and various state governments have been promoting the use
of bio fertilizers with varying degrees of emphasis through grants, extension, and
sales subsidies. Farmers will learn about technology over time, forming their
perceptions based on agronomic realities in their regions, knowledge gained from the
experiences of farmers around them, including themselves, and information provided
by various disseminating agents, and will make their own adoption decisions. The
Government of India has provided the National Bio fertilizers Development Centre in
Ghaziabad with six regional centres in Bangalore, Bhubaneswar, Jabalpur, and
Kolkata, Hisar, Imphal, and Nagpur are among the cities. In the absence of reported
data on farm-level input use, this can aid in understanding progress of technology and
its application in India
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information and knowledge flows have in the past restricted farm development in
India.
The agricultural development agenda would thus necessitate planned interventions at
all links in the agricultural supply chain—delivery of farm inputs, increased
productivities and input use efficiencies through efficient farm management,
reduction of post-harvest losses in handling and storage, provision of storage and
transportation infrastructure, and processing farm outputs into food. Every activity in
this chain involves the generation, processing, and transmission of data. To achieve
targeted outcomes and impact, farming will need to be intertwined with information
and communication technologies (ICTs) across the supply chain.
ICTs are a group of technologies that combine information technology devices such
as personal computers with communication technologies such as phones and
telecommunication networks. The range of technologies, as well as their convergence
with traditional media, is constantly expanding.
ICTs can become key enablers of the agri-food sector by facilitating dynamic and
real-time global level exchange of data, information, and knowledge across the
agricultural value chain. Their effective deployment can lead to increased agricultural
competitiveness by lowering production and transaction costs, increasing production
efficiencies and farm incomes, conserving natural resources, and providing
stakeholders with more information, choice, and value.
In many developed countries, ICTs have changed the face of agriculture. Most
agricultural activities in these countries are now based on the use of web-linked
interactive databases to obtain information on weather, natural resources, product
demand, credit, and government programmes, as well as technical knowledge. In fact,
in developed-country agriculture, information has become the fourth critical factor of
production (the first three being land, labour, and capital). This transformation
occurred in the context of high literacy rates, well-developed infrastructure for
telecommunications, roads, electricity, transportation, and markets, adequate scope
for value addition to processed foods, and easy access to ICTs in a policy
environment that was supportive. Many of these conditions are only partially
applicable in many developing countries, including India. However, in a globalising
world, failing to include ICTs in agricultural development planning can have serious
negative consequences for the rural economy. Recognizing that knowledge is an
increasingly important factor of production and that ICTs can accelerate agricultural
development by facilitating knowledge management are prerequisites for
understanding and implementing ICTs in developing country agriculture.
The overarching goal of this research is to investigate how ICTs can contribute to
agricultural development in India by increasing rural incomes while keeping
sustainability concerns in mind. The study, in particular, develops a conceptual
framework that can guide policy and implementation of ICTs in agricultural
development by examining the various issues from two perspectives:
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(2) Ensuring agricultural development that is sustainable in order to protect the
natural resource base of agricultural production for future generations.
It will be seen that the income perspective focuses on farm level production and
marketing processes and that it can be addressed by both the public and private
sectors through various institutional processes. It necessitates public support for
certain critical information categories, rural infrastructure, and agricultural policy
initiatives in marketing and trade. The regional perspective on sustainable agricultural
development addresses information issues related to the flow of natural resources and
inputs at both the farm and regional agroecosystem levels. The primary role of the
public sector, non-governmental organisations, and research and development
organisations in this context is to provide for the characterization and monitoring of
natural resources, environmental conditions, and socioeconomic impacts. Thus, the
first perspective is relatively short-term and primarily economic in nature, whereas the
second takes a longer-term view of sustainable agricultural development by
integrating farm-level economic impacts with broader environmental and social
impacts of agricultural development.
Agricultural development that raises rural incomes and ensures the sustainability of
the natural resource base of production is critical to India's overall economic growth
and development. Such development must be viewed from two perspectives:
increasing rural incomes and ensuring the sustainability of agricultural production's
natural resource base for growing populations and incomes. For both perspectives,
knowledge management is critical. ICTs provide a plethora of possibilities for
institutionalising knowledge management in agricultural development. Their
implementation must be addressed separately in three institutional environments: a
closed vertical chain network model for private agribusinesses, an open chain network
model for public, non-governmental, and multilateral institutions, and a national
spatial data network infrastructure for access, sharing, and interoperability of
geographic data of natural resources and socioeconomic conditions. The closed chain
and open chain models are primarily used on farms to increase rural incomes, whereas
the spatial data infrastructure addresses long-term concerns about sustainable
development by connecting local, regional, national, and global spatial data networks.
To be effective, the three models (closed chain, open chain, and spatial data networks)
require unique business models and institutional environments, as well as appropriate
policy changes.
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significant policy and capacity building initiatives at various levels will be
required.
EChoupal by ITC: E-Choupal is a Hindi word that means "Village gathering place."
E-Choupal is a virtual market place where farmers can transact directly with
processors and obtain a higher price for their produce. Physical transmission
capabilities of current intermediaries & aggregation, logistics, counter party risk, and
bridge financing are all used by e-Choupal. ITC Limited launched e-Choupal in India
in June 2000, and it has since grown to become the largest Internet-based intervention
in rural India. ITC is one of India's largest private companies, with a significant
presence in agribusiness, agro-trading, and distribution. The Company launched the
eChoupal initiative to bring ICTs to villages, integrate them into its own corporate
business strategy, and serve rural farmers. The model is based on a network of
eChoupal, or village-level information centres, each of which is equipped with a
computer and broadband internet access via VSAT and is run by a trained local
farmer. VSAT connectivity, despite being relatively expensive, effectively overcomes
last mile connectivity concerns and provides reliable broadband access to internet-
based services at the village level. A local commission agent is also included in the
model to provide logistical support in the grain procurement/marketing channel. ITC
owns and manages the eChoupals, bears all costs, and pays the intermediaries a
commission on transactions processed through the eChoupals. In the absence of
eChoupal, farmers sold grain at auction to traders or purchasing agents at
government-mandated marketplaces known as mandis. The ITC eChoupal model
avoids the mandi system by allowing farmers to sell directly to the Company at the
current market price. Before this could happen, ITC needed to use its considerable
resources to influence changes in state regulations on agricultural produce marketing
through enabling legislation.
The model also makes use of ICTs to aggregate demand for farm inputs, provide free
access to crop management knowledge and expert advice, weather forecasts, and
information on current prices in local and global markets. The Company thus
functions as a virtual producer’s cooperative, supplying high-quality farm inputs at a
low cost, as well as knowledge on how to use them effectively. It also enables the
Company to establish a direct marketing channel that is virtually linked to the mandi
system for the purpose of price fixing, but is separate from it for farmers marketing
their grain output.
The extensive backward linkages that ITC has established with farmers are its unique
strength in this business. Because of this collaboration with the farming community,
ITC has been able to develop a highly cost-effective procurement system. ITC has
made significant investments in web-enabled farming in India.
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The ITC's empowerment plan for farmers, dubbed 'e-Choupal,' revolves around the
provision of Internet kiosks in villages. Farmers use this technology infrastructure to
gain online access to information from ITC's farmer-friendly website,
www.echoupal.com. Farmers can access data on the weather, crop conditions, best
farming practises, prevailing international prices, and so on
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E – Garbage - The goal of this project is to configure, design, and implement a
mechanised trash checking framework using web of things and sensor technology. No
IOT-based waste control framework of this type. There is no. The usual framework
would collect scorpions from all recipients, regardless of whether or not they are full.
The proposed route framework reduces the distance by large and thus reduces work
for human beings and the cost of fuel. This system screens the trash basket and
informs about the amount of waste in the trash receptacle in terms of trash containers.
The frame uses an ultrasonic sensor set on the containers to determine the waste level
and contrast
A server is used to store information and displays the level of all dustbins on the page.
The data in an instant message pertains to the trash level and area of a specific
container. The light sensor detected the level of light power, and the gas sensor
detected the level of air contamination. The temperature sensor detects warmth esteem
from the air. The sensor data from the receptacles is sent to the cloud worker. The
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information sent can be broken down and addressed in the most efficient way for a
productive waste collection framework. That street light activity signal was obtained
from the site page. This is a very good sign. The high sign indicates that the streetlight
is turned on, while the low sign indicates that the streetlamp is turned off. The trash
canister filling status alert unit is nearing completion.
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For example, there are many obstacles in a robotic system designed to pick sweet
peppers. Visual systems must conclude the interleave spot and maturity in unkind
conditions, including clean light, varying light size, wind temperature swings and
wind movements. But more is still needed to pick a pepper than advanced vision
systems.
A robotic arm must navigate surroundings with the same number of obstacles to grip
and place an infuser carefully. This process differs greatly from selecting the metal
part and placing it on an assembly line. In a busy environment, the agricultural robotic
arm must be flexible and careful not to damage the peppers as they are selected.
Harvest and replacement robots with farmers are very trendy, but dozens of other
novel traditions are being used by the agriculture sector to develop their production
rates with pre-set computerization.
Agricultural robots automate slow, repetitive and dull tasks for farmers, allowing
them to focus more on improving overall production yields. Some of the most
common robots in agriculture are used for:
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evolution of society in the context of market transformation results in a shift in the
role and importance of individual institutions. The development of the agricultural
sector of economy and its efficient functioning are determined primarily by the
development of its institutions. The process of agricultural production between
economic entities establishes certain economic relations, which are, in essence, a
collection of different market economy elements. Nowadays, agriculture, like the
national economy in general, develops under the influence of objective market laws,
necessitating an examination of the various factors that influence their formation.
Efficient agricultural policies are critical for meeting the growing demand for safe and
nutritious food in a sustainable manner. While rising demand for food, feed, fuel, and
fibre presents significant opportunities for agriculture, government policies must
address challenges such as increasing productivity growth, improving environmental
performance and adaptation to climate change, and strengthening farm households'
resilience to market shocks caused by weather and other unforeseen circumstances.
The institutional environment required to ensure agrarian business growth is evolving
slowly, with significant deformations caused by certain negative phenomena. The
existing structure of the agricultural sector's institutional environment in these
countries attests to the need to revise strategic priorities for institutional
transformation in the agricultural sector. Specific features of institutional changes in
the agricultural sector in conditions of constant imbalances and tectonic changes lead
to the destruction of domestic and foreign markets for agricultural products and have
a huge impact on the development of the domestic economy.
The transition from an agrarian to a market economy occurred against the backdrop of
fundamental institutional changes, including the emergence of new forms of
ownership and patterns, complex interactions between old and new economic
institutions, the revival of economic traditions and the emergence of new
technologies, and changes in the state's traditionally role in current processes. As a
result, further gradual institutionalisation of the economy is required for the
transformation of the agricultural sector and its entry into the global economic space.
The agricultural sector's institutional structure is a complex socioeconomic
system that includes economic, organisational, legal, ethical, and other
components. There are numerous types of institutions. The essence of the agrarian
structure is determined conceptually by forms of ownership and legislative acts that
serve as the foundation for the entire system of production relations. The
organisational and legal structure of economic entities is important. As a result, the
agrarian structure changed in a similar way: the share of collective farms in gross
agricultural output decreased while the share of private farms and households
increased.
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2) Improve existing state bodies and organisations responsible for land cadastre
management, regulating purchase and sale prices, intervening in agricultural
products, and monitoring prices.
3) State control bodies for veterinary, ecological, and epidemiological
supervision, among other things
4) Financial institutions that would provide loans, insurance, and reimbursement
1. Plan, carry out, coordinate, and promote sustainable agriculture research and
technology development.
2. Aid, impart, and coordinate agricultural education in order to ensure high-quality
human resources and resource creation.
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3. Frontline Extension for Agri-based Rural Development Technology Application,
Adoption, Knowledge Management, and Capacity Development
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Structure & Departments the Ministry of Agriculture and farmers Welfare consists of the
following three Departments.
Department of Agriculture, Co-operation and Farmers Welfare.
Department of Agriculture Research and Education.
Department of Animal Husbandry, Dairying and Fisheries.
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Indian agriculture is a $350 million industry powered by nearly 100 million
farmers and independent workers. In recent years, the industry has undergone a
huge digital transformation, leading e-commerce. According to published reports,
the overall e-commerce sector in India is expected to reach around $120 billion of
revenues by the end of 2020, but the share of agriculture in the overall e-commerce
pie is not definitely estimated. The slew of investments made in the agri-e-commerce
industry have been the only evidence of growth. The unprecedented emergence of
COVID-19, on the other hand, has had a riveting impact on the agricultural sector as a
whole. Farmers in many areas are experiencing a labour shortage, as well as a lack of
agri-input, machinery, and other necessary items, causing crop sowing and harvesting
to be delayed. As a result of this impact, the agri-e-commerce sector is also witnessing
and bearing the halo effect.
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competitive prices. Aside from making processes easier, it can also ensure
effective checks to ensure that quality is not jeopardised in any way.
Even today, many farmers face challenges in selling their produce to a larger
customer base. With their ability to bring niche agricultural products to national
markets, e-commerce can help to solve this problem. Agritech start-ups are working
hard to bridge the gap; adding e-commerce to the mix can help them move even faster
toward increasing farmer income. This will occur when product grading is enabled,
product tracing is simplified, and labelling becomes a reality. As a result of digital
inclusion, most farmers would have access to a new supply chain that reduces
leakages and losses during transportation and enables a far more efficient supply
chain linking the procedure to the plate.
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According to a 2015 McKinsey report, the global food and agribusiness industry is
worth $5 trillion. With a current population of 7.8 billion and a projected population
of 10 billion by the United Nations in 2057, the market size of this industry will only
grow significantly as global demand for food rises. As a result of this massive
opportunity, tremendous global investment interest has been generated throughout its
value chain. Technology and digitalization have been viewed as pragmatic solutions
to some of the most pressing challenges confronting the global food system. The
demand for food is rising.
Customers want food traceability, greater price transparency, and access to
information that is available 24 hours a day, seven days a week. In an attempt to meet
these market demands, new digital platforms have emerged.
When examined the existing agribusiness marketplaces and e-commerce platforms,
we discovered two major organisational profiles. The first are start-ups, primarily
from emerging markets, that are looking to disrupt the industry through digital
transformation. They intend to use block chain technology to improve and streamline
procurement processes, increase price transparency, and enable provenance. The
second type of company is a large multinational or a leading regional foodservice
company.
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Here are some ways for increasing focus in areas of investments and
deployments in agri-business through:
1. B2B user expectations are similar to those of B2C users.
2. Expanding the use of block chain in agriculture
3. Increased availability of complementary ecosystem products and services in
agribusiness marketplaces
4. Continued investment in online marketplaces with potential for future
consolidation.
Here are some Agritech start-ups attempting to address some of the major
issues confronting the agriculture sector –
While the emergence of Covid-19 disrupted several industries early last year, the
agritech sector has proven to be surprisingly resilient. “Strong tailwinds created by
restricted movement, labour migration, and increased consumer health awareness
have aided in the rapid adoption of technology throughout the farming
ecosystem.”
1) GramCover - The Noida-based start-up is establishing a retail market for
insurance products in rural India. GramCover's founder, Jatin Singh, claims he
fell into entrepreneurship by chance. First, he founded Skymet, a company that
provides agriweather risk management and data.
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4) BluWrap - A patented oxygen management technique that increases the shelf
life of fresh protein.
6) Farmer's Edge - A hardware and software product that uses satellite imagery
and precision technology to assist farmers in identifying, mapping, and
managing farmland variability.
10) Trace Genomics - Trace Genomics can identify microbes and other biological
data in soil using machine learning and genomics testing, allowing farmers to
maximise yields.
a. The projects are spread across nearly 17 states, with a total investment of 406
crores.
b. These projects aim to create direct and indirect jobs, particularly in rural areas.
In 2016, the MoFPI proposed an umbrella Scheme for Agro-Marine Processing and
Development of Agro-Processing Clusters, or SAMPADA, with a budget of 6,000
crores for the period 2016-20. SAMPADA was renamed the Pradhan Mantri Kisan
Sampada Yojana in 2017. (PMKSY). It is a scheme of the Central Sector. The
government is implementing the Central Sector Scheme – PRADHAN MANTRI
KISAN SAMPADA YOJANA (PMKSY) – with a budget of Rs. 6,000 crores for the
fiscal year 2016-20, which corresponds to the 14th Finance Commission Cycle. By
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2019-20, the scheme is expected to benefit 20 lakh farmers and create 5, 30,500 direct
and indirect jobs. Ms. SadhviNiranjanJyoti, Minister of Food Processing Industries,
provided this information in a written response to a question in Lok Sabha today.
• To supplement agriculture.
• To develop processing and storage capabilities.
• To modernise and expand existing food processing units in order to increase
processing levels.
• To add value, which leads to less waste.
Capital subsidies in the form of grants-in-aid ranging from 35% to 75% of the eligible
project cost, subject to a maximum specified limit, are provided to investors under the
various schemes for undertaking infrastructure, logistic projects, and the
establishment of food processing units in the country under PMKSY.
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REFERENCES
1. Agribusiness Management Education: A Review on Employment Opportunities
(ijsrp.org)
2. (PDF) Agribusiness: The Way of Attracting and Retaining Rural Youth in
Farming (researchgate.net)
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4. https://www.researchgate.net/publication/343471589_Overview_of_Agribusiness
Industry_in_India_Opportunities_and_Challenges
5. (PDF) E-CHOUPAL: IMPORTANCE FOR RURAL INDIA | IAEME
Publication - Academia.edu
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df
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