KEY ROLE & BUSINESS STRATEGY FORMING ENTREPRENEURSHIP IN ORGANIC FARM BUSINESS

Welcome to online India.

In previous episode we have discussed over general study on future of Organic Farming.

Many Questions arises in our mind that-

1.     Why we are here today?
2.     Why we are discussing about Organic Farming?

3.     How would we get benefit by learning Organic Farming?

4.     What will be the strategy?

5.   What will be our key role?

Now we come in point to point answers & discuss elaborately on topic: -

Now let’s come to the point: -

1.       Why we are here today?

We are here to make a team identifies a business opportunity and acquires and deploys the necessary resources required for exploitation Entrepreneurship in Organic Farm Business which targeting a great economy growth developing potential in India. It belongs to a strong supply demand chain & seems to grow rapidly in future.

Organic Farm products have infinite Opportunities for Entrepreneurs willing to set up their Enterprise in this domain.

2.      

          Why we are discussing about Organic Farming?

Top Ten reasons that Organic food is getting popular today:-

1.         Organic Farming reduces The Toxic Load: Keeps Chemicals Out of the Air, Water, Soil and our   Bodies, so supporting organic agriculture doesn’t just benefit your family; it helps all families live less toxically.

2.         Eliminate Off Farm Pollution

3.         Protects Future Generations

4.         Builds Healthy Soil

5.         Organic Food Tastes Better with Truer Flavour

6.         Assist decent Family life & good earning of Farmers

7.         Avoids Hasty and Poor Science in our Food chain & enhance immunity power

8.         Organic Food Eating with a Sense of Pride – since it’s truly natural.

9.         Promotes Biodiversity

10.     Celebrate the Culture of Agriculture

 

3.     How would we get benefit by learning Organic Farming?

A shift from ‘agriculture’ to ‘agri-business’ is being viewed as an essential pathway to revitalize Indian agriculture. While, the share of agriculture in total GDP is declining, it is still the single largest contributor to the GDP and plays a vital role in the overall socio-economic development of India. The share of agri-business will not and is bound to go up with the demand for value addition continuously increasing.

India's agricultural sector highly depends upon the monsoon season as heavy rainfall during the time leads to a rich harvest. But the entire year's agriculture cannot possibly depend upon only one season. Taking into account this fact, a second Green Revolution is likely to be formed to overcome such restrictions. An increase in the growth rate and irrigation area, improved water management, improving the soil quality, and diversifying into high value outputs, fruits, vegetables, herbs, flowers, medicinal plants, and biodiesel are also on the list of the services to be taken by the Green Revolution to improve the agriculture in India.

 In developing country like: India, Agri-business which links input supply, farm production, agro-processing and distribution network emerges as a viable option to resolve the problems of unemployment in rural sector. Thus, the prospects of agri-business rely more on off-farm sector of agriculture viz., agricultural input supply, agricultural processing and agricultural marketing distribution sectors. Therefore, it is directly related to industry and domestic market. India has a vast geographic spread, varied agro-climatic conditions, soils, which facilitates and promoting the production of variety of food and non-food crops.

 

OBJECTIVES OF THE STUDY:

The present study is based on the following objectives:

·         To study the overview opportunities for entrepreneurs that exists in agribusiness in India.

·         To examine the scope for agribusiness in India and reasons for low rate of success in agribusiness.

·         To study the challenges and growth opportunities for entrepreneurs in agribusiness.

·         To assess the strategy for promotion of successful enterprises in agriculture sector in India.

 

DEVELOPING ENTREPRENEURS IN AGRICULTURE CAN IMMENSELY BENEFIT INDIAN ECONOMY BY:

·         Reducing the burden on agriculture

·         Generating employment opportunities for rural youth

·         Reducing the need for migration from rural to urban areas, thereby reducing pressure on urban cities etc.

·         Increasing individual and national income

 

4.       WHAT WILL BE OUR KEY ROLE & BUSINESS STRATEGY FORMING ENTREPRENEURSHIP IN ORGANIC FARM BUSINESS?

Entrepreneurship in Organic Farm Business.

Now what is Entrepreneurship?

Entrepreneurship is a noun which means the activity of setting up a business or businesses, taking on financial risks in the hope of profit. "the new business opportunities have encouraged entrepreneurship on a grand scale"

In elaborately Entrepreneurship is the creation or extraction of value. With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values than simply economic ones. More narrow definitions have described entrepreneurship as the process of designing, launching and running a new business, which is often initially a small business, or as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit. The people who create these businesses are often referred to as entrepreneurs. While definitions of entrepreneurship typically focus on the launching and running of businesses, due to the high risks involved in launching a start-up, a significant proportion of start-up businesses have to close due to "lack of funding, bad business decisions, government policies, an economic crisis, lack of market demand, or a combination of all of these. In the field of economics, the term entrepreneur is used for an entity which has the ability to translate inventions or technologies into products and services.  In this sense, entrepreneurship describes activities on the part of both established firms and new businesses.

Entrepreneurship is an act of being an entrepreneur, or "the owner or manager of a business enterprise who, by risk and initiative, attempts to make profits". Entrepreneurs act as managers and oversee the launch and growth of an enterprise. Entrepreneurship is the process by which either an individual or a team identifies a business opportunity and acquires and deploys the necessary resources required for its exploitation. Entrepreneurs create something new, something different—they change or transmute values. Regardless of the firm size, big or small, they can partake in entrepreneurship opportunities. The opportunity to become an entrepreneur requires four criteria. First, there must be opportunities or situations to recombine resources to generate profit. Second, entrepreneurship requires differences between people, such as preferential access to certain individuals or the ability to recognize information about opportunities. Third, taking on risk is a necessity. Fourth, the entrepreneurial process requires the organization of people and resources.

 According to the Austrian economists Joseph Schumpeter; an entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation. Entrepreneurship employs what Schumpeter called "the gale of creative destruction" to replace in whole or in part inferior innovations across markets and industries, simultaneously creating new products including new business models. In this way, creative destruction is largely responsible for the dynamism of industries and long-run economic growth.

The exploitation of entrepreneurial opportunities may include:

1. Developing a business plan
2. Hiring the human resources
3. Acquiring financial and material resources
4. Providing leadership
5. Being responsible for both the venture's success or failure
6. Risk aversion

Entrepreneurship may operate within an entrepreneurship ecosystem which often includes:

·         Government programs and services that promote entrepreneurship and support entrepreneurs and start-ups

·         Non-governmental organizations such as small-business associations and organizations that offer advice and mentoring to entrepreneurs (e.g. through entrepreneurship centres or websites)

·         Small-business advocacy organizations that lobby governments for increased support for entrepreneurship programs and more small business-friendly laws and regulations

·         Entrepreneurship resources and facilities (e.g. business incubators and seed accelerators)

·         Entrepreneurship education and training programs offered by schools, colleges and universities

·         Financing (e.g. bank loans, venture capital financing, angel investing and government and private foundation grants

 

TYPES OF ENTERPRISES:

While promoting entrepreneurship, we may consider different types of enterprises in agri-business:

·           Farm Level Producers: At the individual family level, each family is to be treated as an enterprise, to optimise the production by making best use of the technology, resources and demand in the market.

·           Service Providers: For optimising agriculture by every family enterprise, there are different types of services required at the village level. These include the input procurement and distribution, hiring of implements and equipment like tractors, seed drills, sprayers, harvesters, threshers, dryers and technical services such as installation of irrigation facilities, weed control, plant protection, harvesting, threshing, transportation, storage, etc. Similar opportunities exist in the livestock husbandry sector for providing breeding, vaccination, disease diagnostic and treatment services, apart from distribution of cattle feed, mineral mixture, forage seeds, etc.

·           Input Producers: There are many prosperous enterprises, which require critical inputs. Some such inputs which can be produced by the local entrepreneurs at the village level are bio fertilizers, bio pesticides, vermicompost, soil amendments, plants of different species of fruits, vegetables, ornamentals, root media for raising plants in pots, agricultural tools, irrigation accessories, production of cattle feed concentrate, mineral mixture and complete feed. There are good opportunities to support sericulture, fishery and poultry as well, through promotion of critical service facilities in rural areas.

·            Processing and Marketing of Farm Produce: Efficient management of post-production operations requires higher scale of technology as well as investment. Such enterprises can be handled by People’s Organisations, either in the form of cooperatives, service societies or joint stock companies. The most successful examples are the sugar cooperatives, dairy cooperatives and fruit growers’ cooperatives in many States. However, the success of such ventures is solely dependent on the integrity and competence of the leaders involved. Such ventures need good professional support for managing the activities as a competitive business and to compete well with other players in the market, particularly the retail traders and middlemen.

 SCOPE FOR AGRIBUSINESS IN INDIA:

·            India is endowed with varied ago-climate, which facilitates production of temperate, sub-tropical and tropical agricultural commodities.

·           There is growing demand for agricultural inputs like feed and fodder, inorganic fertilizers, bio-fertilizers.

·           Biotechnology applications in agriculture have vast scope in production of seed, bio-control agents, industrial harnessing of microbes for bakery products.

·           Export can be harnessed as a source of economic growth. As a signatory of World Trade Organization, India has vast potential to improve it present position in the World trade of agricultural commodities both raw and processed form. The products line include cereals, pulses, oilseeds and oils, oil meal, spices and condiments, fruits and vegetables, flowers, medicinal plants and essential oils, agricultural advisory services, agricultural tools and implements, meat, milk and milk products, fish and fish products, ornamental fish, forest by products etc.

·           At present processing is done at primary level only and the rising standard of living expands opportunities for secondary and tertiary processing of agricultural commodities.

·           The vast coastal line and internal water courses provides enormous opportunity for production of marine and inland fish and ornamental fish culture gaining popularity with increase in aesthetic value among the citizens of India.

·           The livestock wealth gives enormous scope for production of meat, milk and milk products, poultry products etc.

·           The forest resources can be utilized for production of by-products of forestry.

·            Beekeeping and apiary can be taken up on large scale in India.

·           Mushroom production for domestic consumption and export can be enhanced with improvement in the state of art of their production.

·           Organic farming has highest potential in India as the pesticide and inorganic fertilizer application are less in India compared to industrial nations of the world. The farmers can be encouraged and educated to switch over for organic farming.

·           There is wide scope for production and promotion of bio-pesticides and bio-control agents for protection of crops.

·           Seeds, hybrid and genetically modified crops, have the highest potential in India in the future, since the productivity of high yielding varieties have reached a plateau.

·           Micro-irrigation systems and labor saving farm equipments have good potential for the years to come due to declining groundwater level and labor scarcity for agricultural operations like weeding, transplanting and harvesting.

·           Production of vegetables and flowers under greenhouse conditions can be taken up to harness the export market.

·           Trained human resources in agriculture and allied sciences will take on agricultural extension system due to dwindling resources of state finance and downsizing the present government agricultural extension staff as consulting services.

·           The enhanced agricultural production throws open opportunities for employment in marketing, transport, cold storage and warehousing facilities, credit, insurance and logistic support services.

STRATEGY FOR PROMOTION OF SUCCESSFUL ENTERPRISES:

·           Considering the present problems faced by the entrepreneurs engaged in agri-business, it is necessary to create a congenial atmosphere in the field. Some of the important conditions necessary for successful agri-business are presented below:

·           There should be a unanimous option among government officials and farmers about the need and benefits of promoting self-employed youth or private entrepreneurs to facilitate the farmers to enhance agricultural production and profitability.

·           The Government should discontinue the practice of providing free services in those sectors where the work has been assigned to private entrepreneurs.

·           The technical skills and ability of the entrepreneurs should be evaluated to ensure high standards. There should be a monitoring agency to check the quality of the services and the charges collected from the farmers to avoid exploitation.

·           To popularise the services of the entrepreneurs, the Agricultural Extension Agencies and Farmers

·           Organisations should give wider publicity about the services available to the farmers. Such publicity can enhance the credibility of the services provided by the entrepreneurs.

·           The Government should encourage the entrepreneurs by introducing various concessions and incentives. Networks of entrepreneurs may be established to share their experiences. These networks can also establish a close link with Research Institutions and Universities to become acquainted with the latest research findings and seek solutions for their field problems.

 

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General study on future of Organic Farming in India

Welcome to online India. 

We are here with an episode of general study on future of Organic Farming in India which targeting a great economy growth developing potential in India. Today we will discuss according to research & study done by Dr. H. M. Chandrashekar in his International Journal of Research in Business Studies and Management Volume 4.

W

hat is Organic farming?

The main idea behind organic farming is “zero impact” on the environment. The organic farming is to protect the earth’s resources and produce safe and healthy crop. Organic farming is a production system that sustains the health of soils, ecosystems and people. It relies on ecological processes, biodiversity and cycles adapted to local condition, rather than the use of inputs with adverse effects.

Organic farming combines tradition, innovation and science to benefit the shared environment and promote fair relationships and a good quality of life for all involved. Organic farming is being practiced in 130 countries of the world. The ill effects of chemicals used in agriculture have changed the mind-set of some consumers of different countries who are now buying organic with high premium for health. Policy makers are also promoting organic farming for restoration of soil health and generation of rural economy apart from making efforts for creating better environment. The global organic area is 26 million hectares roughly along with 61 standards and 364 certification bodies roughly. The world organic market is now $26 billion. The organic area in India is 2.5 million hectare including certified forest area.

 Concept of Organic Farming

Organic farming is not new to Indian agriculture community. Several forms of organic farming are being successfully practiced in diverse climate, particularly in rain fed, tribal, mountains and hill areas of the country. Among all agriculture systems, organic farming is gaining wide attention among farmers, entrepreneurs, policy makers and agricultural scientists for varied reasons such as it minimizes the dependence on chemical inputs (fertilizers, pesticides, herbicides and other agro-chemicals) thus safe guards and improves the quality of resources, and it is labour intensive and provides an opportunity to increase rural employment and achieve long term improvements in the quality of resource base.

 

Favourable Effects of Organic Farming on Environment

Organic farming is much better for the environment than conventional farming. One of the greatest environmental problems today is energy consumption and organic farming. As a matter of fact, energy efficiency is around seven percent greater for the organic farming system. Other positive environmental aspects of organic farming include the use of much less fertilizer, and the complete avoidance of synthetic fertilizers, which are harmful to soil, water, animal and people. Also, the nitrate content of organic fields is significantly lower than on conventional farms due to the absence of soluble fertilizers. Organic farming focuses on preserving the habitats of all species and their surrounding environments, including the air and water. Organic farming releases much less carbon dioxide than does conventional farming. Carbon dioxide is the leading greenhouse gas that causes global warming.

NEED OF ORGANIC FARMING

With the increase in population our compulsion would be not only to stabilize agricultural production but to increase it further in sustainable manner. The scientists have realized that the “Green Revolution‟ with high input use has reached a plateau and is now sustained with diminishing return of falling dividends. Thus, a natural balance needs to be maintained at all cost for existence of life and property. The obvious choice for that would be more relevant in the present era, when these agrochemicals which are produced from fossil fuel and are not renewable and are diminishing in availability. It may also cost heavily on our foreign exchange in future. The key characteristics of organic farming include

1.    Protecting the long-term fertility of soils by maintaining organic matter levels, encouraging soil biological activity, and careful mechanical intervention.

2.    Providing crop nutrients indirectly using relatively insoluble nutrient sources which are made available to the plant by the action of soil micro-organisms.

3.    Nitrogen self-sufficiency through the use of legumes and biological nitrogen fixation, as well as effective recycling of organic materials including crop residues and livestock manures.

4.    Weed, disease and pest control relying primarily on crop rotations, natural predators, diversity, organic manuring, resistant varieties and limited (preferably minimal) thermal, biological and chemical intervention.

5.    The extensive management of livestock, paying full regard to their evolutionary adaptations, behavioural needs and animal welfare issues with respect to nutrition, housing, health, breeding and rearing.

6.    Careful attention to the impact of the farming system on the wider environment and the conservation of wildlife and natural habitats.

Organic farming was practiced in India since thousands of years. The great Indian civilization thrived on organic farming and was one of the most prosperous countries in the world, till the British ruled it. In traditional India, the entire agriculture was practiced using organic techniques, where the fertilizers, pesticides, etc., were obtained from plant and animal products. Organic farming was the backbone of the Indian economy and cow was worshipped (and is still done so) as a god. The cow, not only provided milk, but also provided bullocks for farming and dung which was used as fertilizers.

Given below are some of the Advantages of Organic Farming for Small Farmers High Premium Organic food is normally priced 20 - 30% higher than conventional food. This premium is very important for a small farmer whose income is just sufficient to feed his/her family with one meal.

 

Low Investment

Organic farming normally does not involve capital investment as high as that required in chemical farming. Further, since organic fertilizers and pesticides can be produced locally, the yearly costs incurred by the farmer are also low. Agriculture greatly depends on external factors such as climate, pests, disease. Furthermore, most of the small farmers are dependent on natural rain for water. Therefore in cases of natural calamity, pest or disease attack, and irregular rainfall, when there is a crop failure, small farmers practicing organic farming have to suffer less as their investments are low. (It should be noted that while shifting from chemical farming to organic farming, the transition might be costly)

 

Less Dependence on Money Lenders

Many small farmers worldwide commit suicide since chemical inputs, which are very costly, are not required in organic farming, small farmers are not dependent on money lenders. Crop failure, therefore, does not leave an organic farmer into enormous debt, and does not force him to take an extreme step.

Synergy with Life

Forms Organic farming involves synergy with various plant and animal life forms. Small farmers are able to understand this synergy easily and hence find it easy to implement them.

Traditional Knowledge

 Small farmers have abundance of traditional knowledge with them and within their community. Most of this traditional knowledge cannot be used for chemical farming. However, when it comes to organic farming, the farmers can make use of the traditional knowledge. Further, in case of organic farming, small farmers are not dependent on those who provide chemical know-how.

Constraints in Organic Farming in India

There are many constraints to the spread of organic agriculture in India. Here are the main ones.

Bias towards Chemical Farming

Existing policies, research and extension activities all support high-external-input farming. Little attention is given to organic agriculture, and no resource materials are available.

Misappropriation of Local Varieties

There is a danger that local seed varieties will be patented by multinational companies. The Indian government should recognize the rich heritage which is the property if India and its local people. This property should be protected by law.

Hazardous Chemicals

The government should ensure that hazardous substances which are banned internationally do not reach Indian farmers. Such chemicals are dangerous to people and the environment. Laws already regulate them, but they are not properly enforced.

Certification of Organic Farming

Policy support for organic agriculture is arriving, but it caters to big organic enterprises. The procedures and requirements are not suited to small-scale farmers.

Bias in Incentives

The government provides many different incentives for high input agriculture. Equal attention should be given to sustainable agricultural practices.

 

Lack of Research and Extension Support

To organic farming and on various aspects like traditional varieties.

Poor Marketing

There is a lack of organized, appropriate marketing structures for small-scale organic farming.

Misinformation and Market Power

The pesticide industry provides misleading or false information to farmers. Its well-established marketing structures feed India’s farmers with persuasive messages promoting high-input farming.

Lack of Awareness

Farmers and consumers are still not awakened to the dangers of chemical farming and the continuing depletion of natural resources.

Changes Needed to Achieve the Potentials of Organic Agriculture

Many changes are needed if India is to overcome these constraints and achieve its rich potential in organic agriculture.

Research and Extension

Research is needed to improve the yield of local crop varieties. Research and extension systems should place more emphasis on developing indigenous crops and livestock.

Supporting Small-Scale Organic Farming

Specific attention should be given to improving local agricultural production by marginal farmers and smallholders who are still “organic by default” and frequently depend on public welfare programmes.

Protect Livelihoods of Rural Poor

The deregulation of national food markets has been agreed on an international level. Within this framework, agricultural policy should develop new strategies to prevent small-scale farmers from being pushed out of the market and off their land into poverty.

Local Control of Land

Large areas of wasteland and forest land located close to villages should be supervised by village committees. This would increase their ability to rehabilitate and use these lands in a sustainable way.

Local Enterprises

Village-level, farm-based enterprises need to be promoted, strengthened and linked to potential markets. This requires support structures that are rarely in place. The government should provide guidelines and support to improve transport facilities, access to information, training, local marketing systems, etc.

 Education

 Organic agriculture should become part of the agricultural curriculum. Professional degrees in organic agriculture should be offered at universities to meet the demand for qualified specialists.

 

Ø  NOW OUR OBJECTIVES ARE TO STUDY THE PRESENT SCENARIO OF ORGANIC FARMING IN THE STUDY AREA.

Ø  TO ASSESS AND EVALUATE THE FACTORS WHICH FACILITATES THE ADOPTION OF ORGANIC FARMING THROUGH RURAL ENTREPRENEURSHIP DEVELOPMENT.

Ø  TO STUDY THE CONSTRAINTS OF ORGANIC FARMING AND TO PROVIDE THE REMEDIAL MEASURES THEREOF.

 

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