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Problems of Agriclinics and Agribusiness Centers in South India

Problems of Agriclinics and Agribusiness Centers in South India

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Published by karjagi

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Published by: karjagi on May 25, 2009
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07/02/2010

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Karnataka J. Agric. Sci., 22(1) : (233-234) 2009
Problems of trained agripreuners under the scheme of agriclinics and agribusiness centers in startingand running their agriventures - A study in south India*
In the post green revolution era, however publicextension finds itself unable to meet changing demands of farming community, tapped as it is in outdated, centralized, top-deacon institutional arrangements and constrained in terms of financial and human resources, lacking in skill and capacities.In this connection Ministry of finance Government of Indiaannounced a scheme of “Agriclinics and Agribusiness Centers”on February 28, 2001. This scheme is being implemented jointlyby NABARD, MANAGE and SFAC since from 9
th
April, 2002by launching this programme formally. After launching thescheme of AC and ABCs there are 67 AC and ABCs trainingcenters are continuously providing the training to agriculturalgraduates on selected identified projects, but after getting thetraining no much progress was seen from the trainedagripreneurs hence an attempt was made to study the problemsfaced by trained agripreneurs in establishing and running theiragri ventures.Out of 14 training centres in south India, 9 trainingcenters were selected randomly by following proportionatesampling procedure. Hence, three centers from Andhra Pradesh,two centers from Karnataka, one center from Kerala and threecenters from Tamil Nadu were selected. Fifteen trainedagripreneurs were selected from each training institute to collectthe information on problems faced by them in establishing andrunning their agriventures. Their suggestions on successfuloperation of AC and ABCs scheme was also collected from atotal sample of 180 trained agripreneurs in South India.To study the problems faced by the trained agripreunersin establishing and running their agri venture, the data wascollected from 99 agripreuners, who have not started their agriventure. Similarly, the data on problems faced by agripreunersin running their agriventure was collected from 46 trainedagripreuners, who have already established their agri venture.The high rate of interest and lack of hand holding supportfrom the training institutes, bankers resistance to finance andNABARD and other commercial banks will not give correctpicture about the rate of interest, subsidy and collateral securitywere the major problems faced by 83, 72, 71 and 70 agripreunerswhich accounts to 93.25 per cent, 80.89 per cent, 79.77 per centand 78.65 per cent respectively. The other problems faced bythese agripreuners in establishing their agri venture were bankersnot responding to the proposals (77.52%), many banks do notknow about the scheme of AC and ABCs (75.28%), high marginmoney (68.53%), lack of support from the family (67.41%) andfear of collection of money from the farmers (66.29%). Problemslike lack of business and field experience, fear of sales, longprocedures involved in getting the bank loans, huge risk involved, dry land ares business runs only in seasons andemployment in private/government sectors were responded by64, 4, 61, 79, 59, 58, 56 and 8 per cent of the agripreunersrespectively.With respect to the problems faced by the agripreunerswho have established their agri ventures, heavy competitionfrom well established and other old dealers in the business wasthe major problem faced by 39 agripreuners (85%) followed byfarmers ask the products on credit basis, non-cooperation of thefarmers in repaying their credit and insufficient cash in handwhile starting the business as responded by 36, 34, and 31agripreuners which accounts for 78 per cent, 73 per cent and 67per cent respectively. The other problems faced by them wereilliteracy and lack of knowledge of farmers (54%), Lack of supportfrom the family (46%), marketing and infrastructure (43%), lowinvestment (41%), no direct dealership from the company (39%)and non-possession of land for demonstration (6%).The most important suggestion given by the trainedagripreuners were to link the training institute with financial*Part of Ph D. thesis submitted by the senior author to the University of Agricultural Sciences, Dharwad-580 005, India
Table 1. Problems faced by the trained agricultural graduates in establishing their agriclinics and agribusiness centersSl.No. ParticularsNo. of respondentsPercentage1.High rate of interest and lack of subsidy component in the scheme8393.252.Lack of handholding support from the training institutions7280.893.Bankers hesitate to finance7179.774.NABARD and commercial banks will not give correct picture about the rate7078.65of interest, subsidy and collateral security5.Banks not responding to the proposals6977.526.Many banks do not know about the scheme of AC and ABCs6775.287.Lac of collateral security6573.038.High margin money (25% of the total cost have to be borne by agriprenerus6168.539.Lack of support from family6067.4110.Fear of collection of money from the farmers5966.2911.Lack of support from family6067.4112.Fear of sales5561.7913.A lot of procedure is involved in getting bank loans5359.5514.Huge risk involved5358.4215.Due to employment in private / public sectors77.86

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