Agri-allied ventures as agri-business

Nongthombam Devachandra *

Introduction : 'Agripreneurs' would refer to those entrepreneurs who engage or claim to engage themselves in any agri-allied ventures not as hobby but as an occupation to generate income. Those activities are broadly termed as "Agri Business". As per RBI's lending policy, agricultural activities are those ventures associated with 'Jamin, Jal, Janwar & Jungle-4Js' i.e soil, water, animals & birds and forestry related.

However, those activities ought to be legally acceptable and socially agreed upon in the area of establishment. The 4Js cover almost all the aspects of Agri-allied sectors. Food Industries and Food Processing Industries have been 'administratively' classified as "indirect agriculture". For an agripreneur, agribusiness could be direct or indirect.

Generally agripreneurs are the educated, learned individuals with most of them having Agri-allied educational background and IIMs-IITs fraternities. In recent time, youth from engineering background are also venturing in to the Agri business. That too, with greater visible success. It is quite encouraging to have them in farming world. However, the issue is their own sustainability in their chosen occupation.

It would be relevant to cite an illustration on being 'best among equals'. We know cheetah is regarded as the fastest animal on earth. When 100 cheetahs of similar age and built are allowed to have a race, will all the 100 cheetahs reach the finishing line at the same time ? Never, this is the message. Each one of them differs from the rest even though they belong to same group. The same is true and applicable for agripreneurs-the equally qualified and enthusiastic individuals. So, they need to endeavour to be the best amongst the equals to sustain in their chosen venture.

The agripreneurs have the enthusiasm but preparedness is of utmost importance especially in the early stages of starting his/her agribusiness. It is a fact that many of the individuals either shift their venture or abruptly abandon for a 'job/ service'. While this is also a normal trend in any enterprise, the attrition rate is quite high amongst the new generation agripreneurs. They come with high expectations before starting but they encounter uncertain risks of agriculture or of the business venture etc.

Sometimes peer pressure drives them off from the venture. They need to be sensitized to be the best amongst equals treating every stakeholder as partners not competitors for their sustainability. They are the driving force to give a facelift to the general impression that 'Agriculture is always associated with poverty, rural life, struggling for life, etc.' We have come a long way from conventional farming to hi-tech agriculture where Artificial Intelligence (AI) is adopted effectively and selectively in Agri-allied sectors with success.

This needs to be focussed on these agripreneurs. They need to realize that Agri-allied sectors in the country have come a long way. There are farmers who are leading equally prosperous lives as those of other occupations. However, it is also a bitter truth that lives of agricultural land-less labourers need to be uplifted with our venturing. It's high time that 'Agriculture' is freed from the clutches of 'politicizing'. Agribusiness is an enterprise where we partner with mother nature !

Our agribusiness endeavours should be to focus more on the enterprises that would directly or indirectly help the farming community in the country. For instance, doing simply the trading business of 'California almond' imported from USA would hardly help almond growers in the country. Importing apple from Japan, Kiwi from New Zealand, dates from Saudi Arabia, etc. would only create business stress amongst our farmers.

Instead, the agripreneurs can look for the specific produce/ products cultivated in particular region in the country and do their business. They can reach out to the un-reached zones. This would definitely be a "Win-Win" situation for all. There are broadly two groups of stakeholders in agri food supply chain (AFSC): conventional and unconventional stakeholders.

Conventional stakeholders are those whose presence and involvement in the AFSC is essential. The absence of a conventional stakeholder greatly affects the whole chain with varying degree of influence. They include farmers (primary producers), agri-allied professionals and institutions, nurseries, input dealers, food processing industries etc.

As an agripreneur, one needs to ponder upon where one can perform one's business venture most efficiently- with lesser efforts yielding maximum outcome! In short, 'what is my cup of tea ?. There is tremendous business opportunity in- pre-production, production, post production, pre-marketing, and marketing till consumption. One can simply be good 'aggregator' of farm produces collected from a group of farmers and engage in sorting, grading and packaging before 'home delivery'. He/She can earn handsomely !

On the other hand, unconventional stakeholders in an Improved Agri Supply Chain would include: Bank; Travel agencies; Doctors; Project Consultants; Police/Traffic/ Security Forces; Journalists/Media/ Publishers; Tools and Machinery manufacturers; Artificial Intelligence; Electronic based- drone based practices; Social/Civil Organizations; Couriers; Road Construction Agency etc. For these 'un-conventional stakeholders, agriculture is not their 'core' business. Their sustenance does not depend upon Agri Supply Chain, but the sustenance of Agri Supply chain depends on these stakeholders in one way or the other.

It is advisable that the new generation agripreneurs decide where they want to be- either as one of these stakeholders themselves or an entrepreneur that assists one or few stakeholders to generate income. For this to accomplish they have to understand the 'SWOT'- Strength, Weakness, Opportunity and Threat associated with his/her chosen enterprise. There is not a single enterprise which is free from challenges.

Understanding the strength and opportunity after analysing weaknesses and threats could be the turning point. The following is few of the many myths and mistakes perceived and committed by agripreneurs:
a) Agri-allied is the ONLY venture affected by rain!
b) When they start they feel "Doing favour to farming community"
c) Govts./Line Depts./ICAR/AUs etc. do not extend help.
d) Banks/ FIs don't show interest in financing!
e) There should be grant/subsidy all the time.
f) Agri Business is 'Come one come all' venture!
g) I can do all alone without taking help from anyone.
h) Honesty has 'no role' in agribusiness growth.
i) It can't be a permanent venture. Such advice and opinion from peers and elders dishearten them.

As an illustration for convincing that agriculture is not the only sector affected by rain, we can discuss the evolution of umbrella business or umbrella industry. Had our grandparents seen the umbrellas of our time, it would be just fantasy!

Once it was an enterprise of rainy season lasting for three-four months of the year. In recent time, the industry evolves itself enabling to run year round business, having exclusive show-room. It created demand from children, ladies; umbrellas for rain, sun etc. This is what we call entrepreneurship!

As we all are aware of Prof. Everett Rogers' (1931-2004) curve of adoption (diffusion of innovations), we have innovators (2.5 %), early adopters (13.5 %), early majority (34%), late majority (34 %) and laggards (16%). The learning point for the new generation agripreneurs is that they ought to target 100 individuals to have 16 clients (innovators and early adopters (2.5+13.5 %), or 10,00,000 people to have 1,60,000 clients who would take their innovative ideas or products.

They need not waste their resources and energy on laggards, late majority or even early majority while 'selling' their ideas, produce or product! It is as simple as that. Sell yourself to succeed. Approach many people; entertain many clients in the beginning of the enterprise. For we need to focus on those 2.5 % and 13.5 %.

As everyone agrees, retention or sustainability rate for agripreneurs is very less. That is, of the many agripreneurs who start their agribusiness, only few could succeed and lead a life of Agripreneurs ! When this endurance is dissected, it is observed that those who endure are the ones who start seriously and sincerely from the beginning till they grow. Those who left or shift (abandon) their venture are the ones, often, who were looking for other jobs/ service and their ventures were 'only for part time'.

So, such pyramid of business sustainability need not be worrisome for new agripreneurs ! They need to focus on what actually they desire to achieve through their chosen venture (in any of the components in the Agri Food Supply Chain: either the conventional ones or the unconventional ones). Failures have 100s of excuses but the winner has only one reason- "I just need to succeed".

The uniqueness of North Eastern Region of India in general and Manipur in particular needs to be understood by these agripreneurs. We are having and experiencing unique problems that demand unique, innovative solutions. Therefore, we just cannot and must not simply replicate the solutions brought from other States or even other countries. Yes, we need to learn from them. But, we need to design our own.

The agri food supply chain (AFSC) in the region faces numerous difficulties and challenges. These difficulties are themselves the opportunities for all. Planning/thinking on 'how to provide a solution' and 'be an entrepreneur' can help in earning a handsome income. It is fortunate that the CAU (Imphal), AAU (Jorhat), ICAR Centres, KVKs and all the State Governments are promoting agri-allied sectors in one way or the other. This is a great opportunity to avail utmost business advantages.

When it was learned that an established Agripreneur from Manipur (M/s Thangjam Agro Industry) found it 'cheaper' for him in procuring orange/ lime concentrate from Maharashtra and Punjab, than arranging the same from the State or NER, then it gives a spark that can ignite hundreds of opportunities. 'What I am doing myself as a Horticulture Professional?' disturbs us searching for the answers.

I am confident that the answer to this question would definitely help all the stakeholders of Citrus Supply Chain in the region. The emerging HORECAs (Hotels, Restaurants and Cafeterias) in every small, medium and big towns/ cities are actually the 'sink' for our produces and products. Let them grow so that we can market our produces/ products.

In the meantime, every entrepreneur ought to remain themselves bankable, credit worthy and aware of the insurance of life (self) as well as that of activities. We need capital and fund to grow and expand our business. Self finance cannot be a sustainable approach in the long run. Credit assistance is essentially required for long term sustainable business growth. Pharmacies sell medicines.

Banks sell 'loans products'. Have we come across any pharmacy that decline to sell the medicine we ask and which they have ? Yes, if we don't have the proper prescription from appropriate physician. So, when any bank is declining my proposal/ project, then we need to understand the issues. Be bankable and creditworthy. They are expected to have sensible awareness on nitty-gritty subsidy and grants.

If they do not know thoroughly, they are likely to end up suffering after availing 'subsidy'. Subsidy and grant are to be treated as 'staking stick' and 'baby walker' never as 'walking stick' and 'wheel chair' respectively. They need to be guided appropriately. The following preparedness is advisable to them:-
a) Not to expect sympathy from any quarter. It's business.
b) Insurance: Man & Activities. Take it as 'bait' for larger capital infusion.
c) Start small and escalate. "Rome was not built in a day!".
d) Target specific 'consumers/customers'. When cigarette business is not subsiding in spite of all negative propaganda, restrictions from Governments, then why can't we promote produces/ products of agribusiness ?
e) Never 'show-off' what/how you are doing. It will only create unwanted competition in near future. Instead, consistently promote your produces/products! Create demand.
f) Focus to increase transaction through bank accounts. Lure the bankers and FIs sincerely.
g) Never take up the venture as 'part time' venture or as hobby and exhibit to all !
h) Never ever compare your earning with peer's salary! Income from agribusiness (where forms of produces does not change) is exempted from Income Tax! Grab it.

As agripreneurs, they need to convince themselves that 'Agriculture is always a blessing and never a burden'. Many pseudo-journalists claim that agriculture has become a loss making venture. If it was/ is true then are these MNCs fool to venture themselves in agribusiness in recent time investing crores of rupees? We need to understand the reality.

To conclude , I would love to present the ever motivating phrase of a poem by Robert Frost:
"The woods are lovely, dark, and deep, But I have promises to keep, And miles to go before I sleep, And miles to go before I sleep!"


The contents and ideas expressed are of the author and not of the institution where he serves