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Rising Kashmir > Blog > Opinion > Agri Startups: Fostering Entrepreneurship and Innovation in Agriculture
Opinion

Agri Startups: Fostering Entrepreneurship and Innovation in Agriculture

DR. PARVEEN KUMAR
Last updated: January 15, 2024 9:16 pm
DR. PARVEEN KUMAR
Published: January 15, 2024
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NATIONAL STARTUP DAY

 

Very aptly called as the backbone of new India by Hon’ble Primeminister of the country Sh. Narendra Modi; the startups are changing the entire ecosystem of the Indian economy. These startups have encouraged innovations and entrepreneurship in the country. These innovation driven startups have lifted the country’s ranking on Global Innovation Index 2023 from 81 to 40.out of 132 economies. Primeminister in the year 2022 announced January 16 as the National Startup Day to celebrate the spirit of the Indian ecosystem initiative. The Startup India is already a flagship initiative of the government of India intended to catalyze startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in the country. An action plan has also been unveiled by Hon’ble PM comprising of nineteen action items spanning areas such as simplification and handholding, funding support and incentives and industry-academia partnership and incubation.

 

According to the department of Industrial policy and Promotion, Ministry of Commerce, Government of India, an entity shall be considered as a startup up if it is working towards innovation, development, deployment or commercialization of new products, processes or services drive by technology or intellectual property. A startup has certain fixed phases one following the others. It starts an initial idea on how it would create value, an entrepreneurial ambition on a potential scalable product or service. Then comes the concept; defining the mission and vision for initial few years with a strategy on how to get the product/service with some more members joining the process as cofounders or experts. It is followed by commitment on the part of every member with a shared vision, values and attitudes and the ability to develop the initial product/service.

 

In the Testing phase assumptions are tested to validate solutions for further demonstrating among the initial users. The Key Performance Indicators (KPIs) are identified. After the testing is done and results are satisfactory, it is the time for next stage to scale up the startup. Scaling usually involves looking for bigger markets, more customers and at the same time attracting more financial resources. Now it is the time for establishment of the startup; achieving growth that can be expected to continue and to work for it. Once established the start up will easily attract financial and human resources. This will depend on vision, mission and commitment of the startup.

 

 

 

Agri. Startups

Agriculture in India is the backbone of country’s economy. Since Independence, Indian agriculture sector has achieved many milestones. Leaving behind food scarcity, it is now the largest producer of many commodities and leading producer of many others. At 157.35 million hectares, India holds the second largest agricultural land in the world. All the 15 major climates in the world exist in India. The country is among the 15 leading exporters of agricultural products in the world. Despite so many achievements, certain inherent problems have been ailing this sector. Although country has the largest youth population, yet they are not interested in this sector, the use of modern technology is least and thus the situation demands taking immediate remedial measures. Given the diversity and vastness of Indian agricultural sector, the agri startups have emerged as a potential platform not only to leverage this sector with technology but also make this sector remunerative ultimately to connect the youths to this noble profession.

 

Transformation of agriculture to agri-business through agri startups is now considered as one of the important strategies where enterprising farmers practice profitable agriculture. It results in farming community becoming become job providers instead of job seekers. The infrastructure set up by agri start ups at the villages will definitely lead to development of these rural areas. The present government under the leadership of Hon’ble Prime Minister Sh. Narendra Modi is focusing more on skill development of Youth. Different institutions and agencies are already on their job to make agri-preneurship as an engine of economic growth in the country. India’s first Ministry for Skill Development and Entrepreneurship (MSDE) was established in November 2014. The ministry has the responsibility for both skill training and entrepreneurship.

 

The Ministry of Agriculture and Farmers’ Welfare, Government of India has also started a flagship programme Agri Clinics and Agribusiness Centers (AC&ABC) to create a pool of agri-entrepreneurs in the country.  Under AC&ABC, National Institute of Agricultural Extension Management (MANAGE), Hyderabad is providing 45 days free residential professional hand holding training program to  graduates from agriculture and allied sciences, environmental Science, botany, zoology, chemistry and those having studied agriculture at 10+2 level or those having a one year Diploma in Agriculture or allied subjects. Young people from rural areas do not have the access to same employment opportunities as their urban counterparts have.

 

In order to skill the rural youths in different agriculture related vocations, another skill development programme of MANAGE called as Skill Training of Rural Youths (STRY) is being conducted in which youth from rural areas are being provided seven days skill training on different aspects. After getting the necessary skills they are eligible for financial assistance from banks by which they can set up their own income generating units in different enterprises like vermicompost, mushroom, seed production, food processing, value addition and other related activities. Considering the vast scope of agri related business in the country, the government of India revamped the Rashtriya Krishi Vikas Yojana (RKVY) to RKVY-RAFTAAR, i. e Remunerative Approaches for Agriculture and Allied Sector Rejuvenation’. The new revamped programme was to cater to the need and modalities for agribusiness promotion. Through this initiative, a thrust has been given to promote agri-preneurship and startups.

 

Two types of programmes are being conducted by knowledge partners of RKVY for those aspiring persons who want to go for agri-startups. The Agri Preneurship Orientation Programme is the basic level programme for those who have only an idea and want to work on that idea.. Under the AOP, two months or 60 hours class room training is being provided to the aspiring agri-preneurs who are selected after a screening of their idea by a committee of experts. The selected persons during two months training are also given a monthly stipend of rupees 10,000. They have also to go for internship with the already established startups. Once their idea qualifies for the startup, they are being given a grant in aid of rupees 5 lakh to put their idea practically into an enterprise.

 

The Startup Agribusiness Incubator Programme (SAIP) is for those who are already working with their idea in the field but do not have the necessary resources and handholding and expertise to expand their business. They have the minimum viable product which they want to upscale. Such persons also after being given two months training are provided with grant in aid of rupees 25 lakhs to put their minimum viable product into a much larger scale. At present many Business Planning and Development Units also called as Agribusiness Incubators (ABIs) are set up across the country in different ICAR institutes and State Agricultural Universities (SAUs). Different ventures have successfully been graduated from these incubators. Similarly entrepreneurship opportunities are also created under Farmer Producer Organizations (FPOs), Primeminister Employment Generation Programme, Micro units Development Refinance Agency, Agriculture Infrastructure Fund and a host of other related programmes.

 

Different state governments are also promoting entrepreneurship in agriculture and allied sectors through many agencies and this has started providing dividend. Many young agricultural graduates have left their government or private jobs to set their own ventures. Their annual turnover now is running into crores; besides their venture also provide employment opportunities to many others. Till only a few decades back, government job was the only choice and preferred destination for all. But now with a holistic entrepreneurial ecosystem that stimulates so many entrepreneurial opportunities for the youths, their perception and mentality has tilted highly in favour of setting their own enterprises. They now understand that government cannot provide jobs to all of them. Instead by setting up their own income generating enterprises, they can provide jobs to others too, become self reliant and make the country a nation of job providers rather than job seekers.

 

 

(Dr. Kumar writes on agriculture and social issues; can be reached at: [email protected])

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