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Master's Seminar On: Vermicompost As A Business Model

This document discusses vermicomposting as a business model in India. It outlines the market potential and growth of vermicompost as an organic fertilizer, its positive impacts on soil health and crop yields, and challenges in the sector. A business plan for a vermicompost production and marketing operation is proposed, targeting farmers and home gardeners and leveraging government support programs.

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Rahul Kumar Singh
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170 views28 pages

Master's Seminar On: Vermicompost As A Business Model

This document discusses vermicomposting as a business model in India. It outlines the market potential and growth of vermicompost as an organic fertilizer, its positive impacts on soil health and crop yields, and challenges in the sector. A business plan for a vermicompost production and marketing operation is proposed, targeting farmers and home gardeners and leveraging government support programs.

Uploaded by

Rahul Kumar Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Master’s Seminar

on
Vermicompost as a business model

Submitted by: Rahul Kumar


Roll no:2008201067
Introduction
• Vermicomposting has been gaining a strong foothold in the country due to simple
production techniques, ecological, economic and human health benefits associated
with it

• it contributes to the sustainable agriculture production and income of farmers


significantly

• Vermicomposting, rightly called “gold from garbage” is the major input in organic
agriculture production

• many farmers are engaged in vermicomposting production as it invigorates soil


health, soil productivity reduces the cost of cultivation
Contd…

• Vermicompost is known to be the world's best fertilizer.

• Vermicomposting is a method of preparing enriched compost with the use of


earthworms

• It is one of the easiest methods to recycle agricultural wastes and to produce


quality compost

• Earthworms consume biomass and excrete it in digested form called worm casts
Objectives

• Market potential of vermicompost organic fertilizer

• Impact of vermicompost

• Business plan & strategy for production & marketing


Objective 1- Market potential of vermicompost
organic fertilizer
Volume of fertilizers produced in India from
financial year 2018 to 2020
47

46

45

44

43

42

41

40

39

38
FY2018 FY2019 FY2020
Column2

source: Statista
source: indianstat 2020
Market potential of vermicompost organic fertilizer

• In India, the penetration of organic fertilizer is very low.

• The proportion of organic fertilizer of the total fertilizer consumption


is only 0.29% for the year 2018-19 and 0.34% for the year 2019-20.
The fertilizer consumption in India was 156.3 kg/ha during the year
2010

• But the production of organic fertilizer in India is increased in FY-


2020
source:Ch, G. K., Bhunia, G., & Chakraborty, S. K. (2011). The effect of vermicompost and other fertilizers on cultivation of tomato plants. Journal of Horticulture and Forestry, 3(2),
42-45.
Area under organic farming in India

2.75%

1.46%
1.31%
1.07% 1.09%

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Source: statista.com
Objective 2- Impact of vermicompost
Impact of vermicompost
• Reduce the volume of organic waste

• Stabilize organic matter, and

• Increase plant biomass production


Contd…
• Vermicompost brought about average increases of 26% in commercial yield, 13%
in total biomass, 78% in shoot biomass, and 57% in root biomass
• The positive effect of vermicompost on plant growth reached a maximum when
vermicompost represented 30 to 50% of the soil volume
• The original material that provided the highest effect size of vermicompost was
cattle manure, with an increase of 27% in yield, 113% in shoot biomass, and 88%
in root biomass.
• Pig manure was also a good material leading to increases in shoot and root
biomass values of 30 and 55%, respectively

source: Blouin, M., Barrere, J., Meyer, N. et al. Vermicompost significantly affects plant growth. A meta-
analysis. Agron. Sustain. Dev. 39, 34 (2019). https://doi.org/10.1007/s13593-019-0579-x
Current scenario of vermicompost unit
• In 2019 demand of vermicompost unit 43

• In year 2020, the demand has doubled to 100 units

• The cost involved in setting up a 600 cubic feet vermicomposting unit


would be around Rs 1 lakh.As many as 100 farmers applied for the
subsidy for vermicomposting units. “But the government has
sanctioned only 65 units under the subsidy scheme

source: Blouin, M., Barrere, J., Meyer, N. et al. Vermicompost significantly affects plant growth. A meta-analysis. Agron. Sustain. Dev. 39, 34 (2019).
https://doi.org/10.1007/s13593-019-0579-x
Current scenario
• The overall fertilizer consumption in India has grown at a CAGR of
2.0% from 50.6 million t in FY2009 to 61.4 million t in FY2020.

• In FY2020, the primary sales volumes for fertilizers grew at a


moderate rate of 6.0% to 61.4 million t in FY2020 from 57.8 million t
in FY2019, following the healthy monsoons

source: Blouin, M., Barrere, J., Meyer, N. et al. Vermicompost significantly affects plant growth. A meta-analysis. Agron. Sustain. Dev. 39, 34 (2019).
https://doi.org/10.1007/s13593-019-0579-x
Impact of vermicompost
• Vermicompost helps improve soil structure, texture, porosity, water holding
capacity, drainage, and aeration and reduce erosion.

• It improves plant growth by enabling the growth of new shoots and leaves,
thereby increasing productivity.

• It helps to neutralize the pH of the soil.

• Vermicompost enhances the soil’s microbial activity and adds beneficial


microbes, lowers the pest and disease incidence.

• It is easy to apply and handle, economical and does not have a foul odor.
Impacts and sustainability
• Social impacts
Improved village hygiene and sanitation condition due to collection and
processing of waste and cow dung. Vermicomposting needs to be introduced in
every village and municipality for recycling of the waste.

• Economic impacts
Vermicomposting is directly associated with National Programme for Organic
Production (NPOP) which aims to promote organic program in the country. The
program will enhance the living standard of small and marginal farming
communities due to increase in price of organically produced crops.

• Environmental impacts
Vermicompost is essential input for organic farming which will reduce or prevent
the deterioration of soil health and in the long run it will ensure sustainable crop
production.
Objective 3- Business plan & strategy for
production & marketing
Business Model
• My business model is based on B2C business model. It is based on the sukhet
model

• If anybody wants to set up a vermicompost business then they can easily


collect the raw material like vegetable and fruit pulps from kitchen, and cow
dung from near villages

• After 60 days we provide a 5kg bag of organic fertilizer to each farmer who
sent their kitchen waste

• If they purchase vermicompost for us then we provide some discount


Targeting customers

Farmers Home gardeners


source: Oxford and IBH Publishing Co. Pvt.
Ltd., New Delhi
Market Opportunity for Vermicompost Fertilizer

• Vermicompost fertilizer production business has good sales potential


over a range of crops i.e. agricultural, horticultural, ornamental,
vegetables, etc.
• A direct sale to end-users includes farmers groups and subdivisions in
nearby cities and municipalities. Bulk sale to producers and
distributors of organic fertilizer that needs vermicompost as one of its
primary components
• High-end market in urban areas due to the popularity of organically
grown farm produce among the rich residing in posh villages and
other high-end residential areas
Support from government
• Under Paramparagat Krishi Vikas Yojana (PKVY) financial assistance is provided for
promotion of  Organic farming through adoption of organic village by cluster approach and PGS
certification. Assistance of Rs 50,000 per hectare/ 3 years is given, out of which Rs. 31,000 (62%)
is provided to the farmers directly through DBT, for inputs (bio-fertilizers, biopesticides,
vermicompost, botanical extracts etc) production/ procurement, post harvest management etc.
• Mission Organic Value Chain Development for North Eastern Region (MOVCDNER)
: Farmers are given assistance of Rs25000/ ha/ 3 years for both onfarm & off-farm organic inputs,
and seeds/ planting material. 
• Under Mission for Integrated Development of Horticulture financial assistance is provided for
setting up vermicompost units @50% of the cost subject to a maximum of Rs.30,000/- per
beneficiary.
• National Mission on Oilseeds and Oil Palm (NMOOP): Financial assistance@ 50% subsidy to
the tune of Rs. 300/- per ha is being provided for different components including bio-fertilizers,
supply of Rhizobium culture/Phosphate Solubilising Bacteria (PSB)/ Zinc Solubilising
Bacteria(ZSB)/ Azatobacter/ Mycorrhiza and vermi compost.
• National Food Security Mission (NFSM): Under NFSM, financial assistance is provided for
promotion of Bio-Fertilizer (Rhizobium/ PSB) @50% of the cost limited to Rs.300 per ha
Challenges in the sector
• Low awareness
• Lack of Standard Operating Procedures (SOPs) in composting sector
• Training, capacity buildings and extensions facilities
• Scalability of vermicomposting
• Market connectivity
• Financial constraints
• Availability of suitable species of earthworm
• Quality testing facilities.
Conclusion
• People are taking interest towards the organic product
• Vermicomposting is popular because of its simple methodology with
low investment
• A vermicompost unit can be established either as a small-scale unit or
as pilot unit. It is highly recommended strategy to manage the
household waste problem
• Due to easy handling every one can start the business of vermicompost
References
• https://www.agrifarming.in/vermicompost-business-plan-in-india
• https://bioinfopublication.org/files/articles/9_41_5_IJAS.pdf
• https://link.springer.com/article/10.1007/s13593-019-0579
• https://
vikaspedia.in/agriculture/agri-inputs/bio-inputs/support-from-govern
ment

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