Agriculture Sector Agriculture is the mainstay of the Indian economy because of its high share in employment and livelihood

creation. It supports more than half a billion people providing employment to 52 per cent of the workforce. Its contribution to the nation's GDP is about 18.5 per cent in 2006-07. It is also an important source of raw material and demand for many industrial products, particularly fertilizers, pesticides, agricultural implements and a variety of consumer goods. Department of Agriculture and Cooperation under the Ministry of Agriculture is the nodal organisation responsible for development of the agriculture sector. It is responsible for formulation and implementation of national policies and programmes aimed at achieving rapid agricultural growth through optimum utilization of land, water, soil and plant resources of the country. Agriculture being a State subject, it is the responsibility of the State Governments to ensure growth and development of the sector within their respective State. Accordingly, separate departments have been set up in several States. Several significant initiatives have been taken in recent years by the Government Rashtriya Krishi Vikas Yojana (RKVY), National Policy For Farmers, 2007 Expansion of Institutional Credit to Farmers, National Rural Health Mission, National Food Security Mission, Rashtriya Krishi Vikas Yojana to incentivise the states to invest more in agriculture, Integrated Food Law, Legislative Framework for Warehousing Development and Regulation, Protection of Plant Varieties and Farmers' Rights (PPVFR) Act, 2001, National Bamboo Mission, etc. The rapid growth of agriculture is essential not only for self-reliance but also for meeting the food and nutritional security of the people, to bring about equitable distribution of income and wealth in rural areas as well as to reduce poverty and improve the quality of life. Growth in agriculture has a maximum cascading impact on other sectors, leading to the spread of benefits over the entire economy and the largest segment of population.

Current Scenario Agriculture is the mainstay of the Indian economy because of its high share in employment and livelihood creation. It supports more than half a billion people providing employment to 52 per cent of the workforce. Its contribution to the nation¶s GDP is about 18.5 per cent in 2006-07. It is also an important source of raw material and demand for many industrial products, particularly fertilizers, pesticides, agricultural implements and a variety of consumer goods. India¶s total geographical area is 328.7 million hectares, of which 141 million hectares is the net sown

area, while 190 million hectares is the gross cropped area. The net irrigated area is 57 million hectares with a cropping intensity of 134 per cent. The total irrigation potential in the country has increased from 81.1 million ha in 1991- 92 to 102.8 million ha in 2006-07. Productivity increase in agriculture is also considerably dependent on capital formation both from the public and private sectors. Gross capital formation (GCF) in agriculture as a proportion to the total capital formation has shown a continuous decline. GCF in agriculture relative to GDP in this sector has, however, shown an improvement from 9.6 per cent in 2000-01 to 12.5 per cent in 2006- 07. The overall production of foodgrains was estimated at 217.3 million tonnes in 2006-07. Between 1950-51 and 2006-07, production of foodgrains increased at an average annual rate of 2.5 per cent compared to the growth of population which averaged 2.1 per cent during this period. As a result, India almost became self-sufficient in foodgrains and there were hardly any imports during 1976-77 to 2005-06, except occasionally. The increase in foodgrain production in 2006-07 was largely because of higher production of wheat by 6.5 million tonnes (9.3 per cent) and of pulses by 0.8 million tonnes (6 per cent). There was a decline in production of oilseeds (3.7 million tonnes or 13 per cent) compared to the production in 2005-06. The production of non-food crops, particularly sugarcane, cotton and jute (including roselle), in 2006-07, however, exceeded both the targets and the levels achieved in the previous year. During the year 2006-07 (up to 30 September 2006), the value of agricultural exports was worth Rs 28,157.52 crore as compared to Rs 21673.25 crore during April-September 2005. The share of agricultural exports in total export was more than 10 per cent during April-September 2006. Agricultural imports registered a decline during April-September, 2005. The share of agricultural imports in India¶s total imports showed a decline from 3.70 per cent to 2.88 per cent during the corresponding period. India is the third largest producer and consumer of fertilizers in the world after China and the USA, and contributes about 11.4 and 11.9 per cent to the total world production/consumption of NPK nutrients respectively.Per hectare consumption of fertilizers has increased from 69.8 kg in 1991-92 to 113.3 kg in 2006-07 at an average rate of 3.3 per cent. The rapid growth of agriculture is essential not only for self-reliance but also for meeting the food and nutritional security of the people, to bring about equitable distribution of income and wealth in rural areas as well as to reduce poverty and improve the quality of life. Growth in agriculture has a maximum cascading impact on other sectors, leading to the spread of benefits over the entire economy and the largest segment of population.

Organisational Framework Department of Agriculture and Cooperation under the Ministry of Agriculture is the nodal organisation responsible for development of the agriculture sector. It is responsible for formulation and implementation of national policies and programmes aimed at achieving rapid agricultural growth

flood. administering the 'Crop Insurance Scheme' to provide relief to the farmers in the event of crop failure. and strengthening the cooperative movement through appropriate policy measures and also through organisations like the 'National Cooperative Development Cooperation (NCDC)'. enable the farmers to reap benefit from modern technology. assisting and advising the States in undertaking scarcity relief measures and in management of natural calamities e. 'National Agricultural Cooperative Marketing Federation of India Ltd (NAFED)' and the 'National Cooperative Union of India (NCUI)'. developing suitable strategies for rain-fed farming through. assisting States in management of drought and to undertake scarcity relief measures. 7 autonomous bodies. working towards promoting measures for production of quality seeds and distribution of improved plant varieties. etc. water. people¶s participation for holistic and integrated development of potential watershed and the promotion of a farming system approach for augmenting income and the nutritional level of farming communities. assisting the State Governments to improve agricultural extension services by adopting new institutional arrangements through the involvement of NGOs. soil and plant resources of the country. farmers¶ organisations and agricultural universities. It has 4 attached offices. The Department is organised into 24 divisions and a 'Technology Mission on Oilseeds. seeds and implements to the farmers.g. promoting plant protection measures through the dissemination of appropriate information and technology. pesticides. crop insurance and ensures remunerative returns to the farmer for their agricultural produce. It has been set up with a view to create increased job opportunities in rural areas. namely. for fostering bilateral cooperation in agricultural and allied sectors and for promotion of export in agricultural commodities. create surplus for exports and stimulate demand for processed food. fertilisers. cyclone. two authorities. It undertakes all possible measures to ensure timely and adequate supply of inputs and services such as fertilizers. drought. Besides. It is also entrusted with the responsibility of collection and maintenance of a wide range of statistical and economic data relating to agriculture. the Department essentially supplements and complements the efforts being made by the state governments to promote agricultural production and productivity. the 'Protection of Plant Varieties and Farmers Rights Authority' and the 'National Rain-fed Area Authority' have been set up. required for development planning. 2 public sector undertakings. Some of the more important functions discharged by it are :           endeavouring adequate and timely supply of inputs and services such as agricultural credit. Ministry of Food Processing Industry is the main central agency of the Government responsible for developing a strong and vibrant food processing sector. seeds. Pulses and Maize'. endeavouring to bring about the integrated development of marketing of agricultural produce to safeguard the economic interests of the farming community. laying down Minimum Support Prices (MSP's) for certain key agricultural commodities to ensure food security in India and remunerative prices for farmers. pesticides. . 21 subordinate offices. agricultural implements and also provides agricultural credit.through optimum utilization of land. It also participates in activities of international organizations. In addition. organising agricultural census. and 11 national-level cooperative organisations under its administrative control. inter alia.

Foodgrain milling industry. Export Oriented Units (EOUs). weaning food. breakfast foods. confectionery(including cocoa processing and chocolate). including rationalization of taxes & duties. Some of these important initiatives include:            Bharat Nirman National Rural Employment Guarantee Programme National Horticulture Mission Expansion of Institutional Credit to Farmers Establishment of the National Bee Board Establishment of the National Rainfed Area Authority Establishment of the National Fisheries Development Board (NFDB) Watershed Development and Micro Irrigation Programmes Reforms in Agricultural Marketing and Development of Market Infrastructure Revitalisation of Cooperative Sector Agri-business Development through Venture Capital Participation by the Small Farmer Agri- . pr0-tein isolate.high protein food.The Ministry acts as a catalyst and facilitator for attracting domestic & foreign investments towards developing large integrated processing capacities .     Alcoholic drinks from non-molasses base. Dairy products. meat and meat products. The subjects looked after by the Ministry are :       Fruits and vegetable processing industry. meals (edible). Policies and Incentives Several significant initiatives have been taken in recent years by the Government in order to reverse the downward trend in agricultural production. It processes applications for foreign collaborations. Fish processing. oilseeds. and assists/guides prospective entrepreneur in his endeavour. by creating conducive policy environment. Bread. Processing of poultry and eggs. biscuits. Aerated waters / soft drinks and other processed foods. etc. malt extract. as well as Technical assistance and advice to food processing industry. Specialized packaging for food processing industries.

and training and mass media campaign including awards for best performing districts. and enhancing farm level economy to restore confidence of farmers of targeted districts. The identified districts are given flexibility to adopt any local area specific interventions as are included in the Strategic Research and Extension Plan (SREP) prepared for the agriculture development of the district. 2001 National Bamboo Mission and Knowledge Connectivity through Common Service Centres (CSC) and IT initiatives. 2007 Government of India has approved the National Policy for Farmers. National Policy For Farmers. It is a State Plan Scheme and the eligibility for assistance under the scheme depends upon the amount provided in the State budgets for agriculture and allied sectors. creating employment opportunities. availability of technology and natural resources. launched with the objective of increasing the production of rice. restoring soil fertility and productivity. by the end of the Eleventh Five Year Plan period. popularisation of newly released varieties. over the benchmark levels of production. Achieve the goal of reducing the yield gaps in important crops. wheat and pulses by 10. 8 and 2 million tonnes. . Rashtriya Krishi Vikas Yojana (RKVY) It was launched to incentivise the States to increase the share of investment in agriculture in their State plans. respectively. It is being implemented in 305 districts of 16 States of the country. The funds under the RKVY are to be provided to the States as 100 per cent grant by the Central Government. National Food Security Mission (NFSM) It is a centrally-sponsored scheme. 2007 taking into account the recommendations of the National Commission on Farmers and after consulting the State Governments. distribution of quality seeds of HYVs and hybrids. Ensure the preparation of plans for the districts and the States based on agro-climatic conditions. Various activities of NFSM relate to demonstration of improved production technology. Maximize returns to the farmers. The Mission aims at increasing foodgrains production of the above crops through area expansion and productivity enhancement. over and above the baseline percentage expenditure incurred on agriculture and allied sectors. support for micronutrients.         business Consortium Reform and Support for Agriculture Extension Services National Rural Health Mission National Food Security Mission Rashtriya Krishi Vikas Yojana to incentivise the states to invest more in agriculture Integrated Food Law Legislative Framework for Warehousing Development and Regulation Protection of Plant Varieties and Farmers&rsquo Rights (PPVFR) Act. Ensure that the local needs/crops/ priorities are better reflected. Provide flexibility and autonomy to the States in planning and executing agriculture and allied sector schemes. It aims at achieving the 4 per cent annual growth in the agriculture sector during the Eleventh Five Year Plan period by ensuring a holistic development of agriculture and allied sectors. through focused interventions. The main objectives of the schemes are:       Incentivise the States to increase public investment in agriculture and allied sectors.

Develop and introduce a social security system for farmers. water and energy security systems in rural India and to ensure nutrition security at the level of every child. machinery and implements. irrigation. among other things. products and processes developed through biotechnology and Information and Communication Technology (ICT). and improvement of land. Pay explicit attention to sustainable rural livelihoods. bio-diversity and genetic resources essential for sustained increase in the productivity. . Restructure the agricultural curriculum and pedagogic methodologies for enabling every farm and home science graduate to become an entrepreneur and to make agricultural education gender sensitive. The primary focus of this policy is on µfarmer¶ defined holistically and not merely on agriculture. it is much more comprehensive than an Agriculture Policy. Provide appropriate price and trade policy mechanisms to enhance farmers¶ income. there is emphasis on increased productivity.The National Policy for Farmers. water. Needless to say. farm animals. water and support services apart from provisions of appropriate price policy. Provide for suitable risk management measures for adequate and timely compensation to farmers. Foster community-centred food. woman and man. Complete the unfinished agenda in land reforms and to initiate comprehensive asset and aquarian reforms. fish and forest trees for safeguarding the livelihood and income security of farmer families and the health and trade security of the nation. Develop support services including provision for seeds. The major goals of the National Policy for Farmers are to:                Improve economic viability of farming by substantially increasing the net income of farmers and to ensure that agricultural progress is measured by advances made in this income. Introduce measures which can help attract and retain youths in farming and processing of farm products for higher value addition by making it intellectually stimulating and economically rewarding. Make India a global outsourcing hub in the production and supply of the inputs needed for sustainable agriculture. fertilizers and credit at affordable prices in adequate quantity for farmers. Mainstream the human and gender dimension in all farm policies and programmes. to improve the economic viability of farming through substantially improving net income of farmers. has provided for a holistic approach for development of the farm sector. inter alia. power. The objective is. risk mitigation measures and so on. institutional support. Protect and improve land. In that sense. Provide appropriate opportunities in adequate measure for non-farm employment for the farm households. Strengthen the bio-security of crops. profitability and stability of major farming systems by creating an economic stake in conservation. profitability.

it is the responsibility of the State Governments to ensure growth and development of the sector within their respective State. According to this policy. production and profitability of field crops. The Department of Agriculture is dedicated to serve the farming community by implementing various developmental programmes and disseminating the relevant technology to increase productivity. Government of West Bengal The department is concerned with activities relating to policy decisions on agricultural production and productivity. transfer of technology. emphasis was given on use of water as irrigation for agricultural crops. water etc. along with . Department of Agriculture. Department of Agriculture. Government of Himachal Pradesh Himachal Pradesh is predominately an agricultural State where Agriculture provides direct employment to about 71 percent of the total population. ensuring availability and timely distribution of agriculture inputs specially seeds. The department considers farmer as the focal point and the whole department is organized in such a fashion that a single mechanism is working to facilitate the farmer for adoption of advanced technology and sustainable use of available resources. land. are being harnessed in such a way that cherished goals of ecological sustainability. some of which include the following. separate departments have been set up in several States. economic upliftment of farming community are achieved. Government of Maharashtra Agriculture Department took up various land development activities with the enactment in 1942 and subsequent enforcement of Land Development Act in 1943. The natural endowments like soil. Department of Agriculture. credit etc. Accordingly. the then Government prepared a comprehensive Agriculture Policy considering the problems in agriculture and allied sectors. The Agriculture sector contributes nearly 30 percent of the total state domestic product. its extension through technology generation. fertilisers. For the first time in 1943.State Departments Agriculture being a State subject. subsidy.

coupled with growing income will generate increased demand for food grains and non-food grain crops. Agricultural Research. seedlings. coverage of area under irrigation and improvement in the productivity levels. The Agriculture Department has taken up the challenge to achieve higher growth rate in agriculture by implementing several development schemes and also propagation of relevant technologies to step up the production. water conservations. it would also make the growth more inclusive. The increasing population. Indian agriculture also has to diversify into high-value crops. planting materials and plant protection chemicals to farmers.support service through soil testing. Education and Extension are three important functions of the department. and also arranges the supply of high yielding varieties of seeds. etc. there are certain implications that have to be addressed for national and nutritional security. further increase in agriculture production needs to come through an increase in gross cropped area (multiple cropping). Indian agriculture has to achieve a higher growth rate targeted at 4 per cent per annum on a sustainable basis. soil conservations. Government of Kerala This department deals with the formulation and implementation of various programmes to augment production of both food crops and cash crops in the State. Government of Tamil Nadu Agriculture continues to be the most predominant sector of the State economy. seed certification. as 70% of the population is engaged in Agriculture and allied activities for their livelihood. Therefore.4 billion by 2020. large investments are required for the development of post-harvest and cold chain infrastructure nearer to the farmers¶ fields. Our population is expected to be 1. raise productivity. Acceleration of growth of this sector will not only push the overall GDP growth upwards. Since increase in net sown area has flattened out. Department of Agriculture.km with a gross cropped area of around 63 L. To provide dynamism and efficiency into the marketing system. It undertakes activities among farmers to promote scientific methods of cultivation plant protection etc.3 Lakh sq. Seed testing. quality control of fertilisers and pesticides. Agriculture sector needs well functioning markets to drive growth. Department of Agriculture. The State has as an area of 1. restore soil health and enhance the application of modern technologies including biotechnology. Future Prospects Although Indian Agriculture has come a long way. It runs agricultural farms and also has an engineering wing. . plan production. employment and economic prosperity in rural areas of the country. The department also formulates policies and programmes relating to provision of credit to farmers. The Government's policy and objectives have been to ensure stability in agricultural production and to increase the agricultural production in a sustainable manner to meet the food requirement of growing population and also to meet the raw material needs of agro based industries.Ha. thereby providing employment opportunities to the rural population.

Human resource development of the persons engaged in agriculture is necessary not only to have greater penetration of better technology but also because new skill sets would be necessary to enable underemployed labour in this sector to get absorbed in other fast growing sectors. The sector will benefit immensely from these policy interventions. These include focus on potential areas. extension support for facilitating adoption of improved practices. with uncertainties in global markets and hardening of the international prices of food. regionally-differentiated strategies. fertilizers. While public investment in agriculture may not have kept pace with the requirements of the sector. New initiatives in the form of National Food Security Mission and Rashtriya Kriski Vikas Yojana have been taken to rejuvenate this sector.and intra-sectoral linkages. . domestic price stability and food security critically depend on growth in this sector. crop diversification and the scientific management of natural resources. food and fertilizer subsidies have supported the agriculture sector. use of highyielding varieties of seeds. This necessitates working out the forward and backward linkages that enhance productivity through balanced allocation and better utilization of available resources at all levels of implementation and quantifying output per unit of resource used. fuels and edible oils. The long-term policy framework at broad sectoral level needs to be strengthened and focused on improving inter. Further. Increasing farm incomes is also necessary for an equitable growth. there is a need to build an outcome oriented perspective in the implementation of public programmes in the area of irrigation. In addition. The Department of Agriculture and Cooperation is working on strategies to achieve 4 per cent annual growth rate. There may be a need for better targeting of these subsidies with a view to optimize the resource allocation and returns there from. and market access.

Second. The terms. It involves an analysis of the literature to identify similarities and distinctions particularly in areas of entrepreneurship and business start-ups.in -----------------------------------------------------------------------------------------------------------------------------------------------------------------Abstract This paper explores fundamental issues that deserve attention from scholars interested in Agripreneurship. the important role of cluster theory is highlighted. Third. Jaipur 303 906 mittalniam@yahoo. These zones have been set up for end to end development for export of specific products from a geographically contiguous area supported by agripreneur. entrepreneurship and agripreneurship are frequently used in the context of education and small business formation. State agriculture universities and all institutions and agencies of the Union Government for intensive delivery in these .Entrepreneurship Development through Agripreneurship in India: Crossing the Boundaries with Agri-Export Zones (AEZ) Ramesh Mittal Agribusiness & Entrepreneurship Cell National Institute of Agricultural Marketing. the concept of the agri export zones (AEZ) was floated in sixty places in India for various agricultural produce. several theoretical issues and frameworks useful to further development of Agripreneurship are explored. Agri Export Zones (AEZs): AEZ are identified by the State Government.co. First. Particular countries have preference for the use of the terms in specific circumstances. who would evolve a comprehensive package of services provided by all State Government agencies. With a view to promoting agricultural exports from the country and remunerative returns to the agripreneur community in a sustained manner. learning theory and Knowledge Management is shown to be core issues for Agripreneurship. The purpose of this paper is to clearly set out promotion of agri export through entrepreneurship development and understanding of the issues where the terms are commonly used. The findings indicate that through these concepts the country has developed agribusiness in a value added manner for export purposes and even now farmer are becoming real agripreneurs.

zones to develop agripreneurship. It is a part of agripreneurship development Thus. the geographical region in which these are grown and adopting an end to end approach of integrating the entire process. processing. plant protection. . Nodal agency will supplement. finally exporting them. Private sector with proven credentials would be encouraged through entrepreneurship development to sponsor new agri export zone or take over already notified agri export zone or part of such zones for boosting agri exports from the zones. the setting up of processing facilities. Services which would be managed and co-coordinated by State Government/Private sector and would include provision of pre/post harvest treatment and operations. packaging. efforts of State Governments for facilitating such exports. their processing and packaging. providing finance at low interest rates and even matching with international buyers. the entire effort is centered on a cluster approach of identifying the potential products. The export zones mooted by the Agricultural and Processed Food Products Export Development Authority (APEDA) to increase international trade in agri-commodities are an attempt to take a holistic approach to encouraging trade in specific commodities located in contiguous areas. The government helps agripreneur in sourcing for raw materials. right from the stage of production till it reaches the market. storage and related research & development etc. The concept of the Agri Export Zone attempts to take a comprehensive look at a particular produce/products located in a contiguous area for the purpose of developing and sourcing the raw materials. within its schemes and provisions.

second. third.Keywords: entrepreneurship. government policy (both macroeconomic and microeconomic) and technology.. He has published papers in several small business journals. Jaipur. First. Explicit in this is that the agrirepreneur is a risk-taker and has the opportunity to initiate and to implement decisions which deal with the uncertain agricultural business environment within which the firm operates. focused on Entrepreneurship from University of Rajasthan. Consultancy.D. competition. with additional charge of Post Graduate Programme in Agribusiness Management at National Institute of Agricultural Marketing (He received his Ph. However. acquire a business or be involved in innovatory activity in agricultural value addition. the Classical which highlights the importance of recognising opportunities. the Intuitive which stresses the personal psychological makeup of the individual to avail the opportunity. For example an agrirepreneur may start an agri-business. He was editor of Journal of Entrepreneurship. the Leadership which . economic factors. His research interests include Agripreneurship Training. In this paper I have identify five frameworks within which to analyse entrepreneurial activity. social and demographic trends. Research and the provision of government services that support Agribusiness.the perception of an opportunity and the willingness to do something to take advantage of it. an agrirepreneur may be thought of someone who undertakes a variety of activities in agricultural to be agrirepreneur. change a business¶s direction. agri-export zones (AEZ). agripreneurship. Biographical notes: Author is a Deputy Director (Faculty) of Agribusiness & Entrepreneurship Cell. Thus an agrirepreneur may undertake a range of different activities which have a common link . The business environment consists of many complex interrelated elements including: customers. ³Entrepreneurship Development through Agripreneurship in India: Crossing the Boundaries with AgriExport Zones (AEZ)´ Full Paper Agripreneurs and Agrirepreneurship Development There is no single definition of the term ³Agrirepreneur´.

the backbone of the economy. whereas with the Art of Agrirepreneurship there is no negative. whereas the Art of 9. This specialization is developing agripreneurs with distinct traits and skills to exploit opportunities galore in the field of agriculture. Agricultural uses the negative to block off certain pathways. Agricultural is mechanical. Thus the agrirepreneur introduces change into the market place but must also be aware of the outside pressures for change which are being experienced as the result of other entrepreneurial activity. whereas the Art of Entrepreneurship welcomes chance intrusions. Within these frameworks of thought. Many individuals. Agripreneurship requires more than just the identification of new opportunities. Agricultural is selective. Agri-business Development. commitment. Research identifies a number of strategies necessary for successful entrepreneurial start-ups which include identifying unmet demand. the Management which looks at the importance of organising businesses by such means as developing strategies and improved decision-making. whereas the Art of Agrirepreneurship can make jumps. With the reducing interest . fourth. 4. Agricultural excludes irrelevant information. The following table is adapted from Edward DeBono¶s lateral thinking principles (1990) and is applied to highlight the difference between the ³Agricultural´ of current approaches to Agripreneurship education and the ³art´ of agrirepreneurship education which is needed. Agri . Agricultural moves only if there is a direction in which to move. classifications and labels.Entrepreneurship Amidst the changing paradigms and demanding global structure. focus on promoting viable enterprises is certainly helping to exploit its operational efficiency to the hilt. whereas the Art of Agrirepreneurship is generative. Entrepreneurs are often discussed in terms of starting a business. Agricultural is sequential. in order to remain a front-runner needs to primarily focus on the agriculture sector.concentrates on a person¶s ability to motivate and direct people for success. even Government is encouraging private sector participation by inviting trade bodies to suggest necessary reforms in Indian agriculture. fifth. In this document. small business houses and large corporates were looking for new investment opportunities. decisiveness and self confidence are also important elements of the entrepreneurial process. Among the various strategies to promote planned growth in this sector. producing marketing and financial plans. the Intrepreneurship looks at innovation within organisations. 6. this initiative while preparing a document to completely transform Indian agriculture got new light through new policies and regulations prevalent in the country. Today. Government has very long played an important role. 2. developing new products which meet changing market conditions. whereas the art of Agrirepreneurship moves in order to generate direction. Agrirepreneurship there is no such constraints. not much scope was available. In many sectors of the economy. India. the entrepreneur is responsible for identifying and meeting market needs. whereas with the Art of Agrirepreneurship this does not need to be so. 7. weighing up risks and rewards and having the necessary resources to launch the business. many success stories have been presented. The poor farmers have failed in agriculture but agripreneurs are becoming very successful by doing business in Agri Export Zones (AEZ) of India. 1. Agricultural has fixed categories. and final solution come with clear cut action plans for the future. Somehow.Private Sector Role Agriculture being vital for Indian economy. 3. 1. 5. Additional qualities such as imagination. It also started private sector role that could also complement and supplement the government efforts. The Task Force highlighted the potential for global opportunities and India¶s competitive advantages in the context of WTO and Globalization. The time has come for private sector to come forward. 8. whereas the Art of Agrirepreneurship is provocative. Agricultural requires each step to be correct.

the Indian agriculture sector ranks third. Why India promoting Agripreneurship: a quick perspective In India. grading. is still quite high. business plans with long gestation periods have acquired new relevance for the private sector. India is the centre for biodiversity in plants. medicinal & aromatic plants and spices). The share of agriculture in the total value added to the economy. 17% of goats and 5 % of sheep population of the world. In recent years. Fifth largest producer of eggs. 52% of total land is cultivable as against 11% in the world.rates. 15. in the foreseeable future and any move to ramp up the sector calls for a multipronged strategy. Creation of critical infrastructure for cold storage. have also identified Agriculture Export Zones as a new agenda that will create conducive Agri environment for healthy development in future. y y y y y y y y y y Agriculture remains a key sector of the Indian economy accounting for 25 per cent share in the gross domestic product (GDP) and about 13 per cent of the total export earnings. with a view to providing remunerative return to the Agripreneurs community in a sustained manner. Second highest producer of milk with a cold storage capacity of 70. Reforms in agriculture have become top agenda for the government in the country.2% of total exports and provides employment to 58. peanuts. ornamental crops. In a fast changing International Trade Environment. micro-organism and accounts for 17% animal. at around 25 per cent. It attracts minimum taxes and gets maximum support. both for policy makers as well as businesses. vegetables. India has 16% of cattle. Investments in cold chain required to store 20% of surplus of meat and poultry products during 10th plan requires Rs 500 Crore (US$100M) Sixth largest producer of fish with harvesting volumes of 5. cashew nuts and cocoa) and allied activities. packaging and quality control measures open major opportunities for investment. 3. Increasing demand for quality and convenience food by the world consumers has created new level of business opportunities. There are 20 agro-climatic regions and nearly 46 out of 60 soil types in the country. after China and the United States. Thar Desert to heavy rain areas all exist in India.000 tonne. In the live stock sector. India is the second largest producer of rice and wheat in the world. its business environment in terms of regulations. All 15 major climates of the world. Agriculture being top priority. Second highest fruit and vegetable producer in the world (134. tea and an assortment of spices In terms of the real value added.2 million tones. processing.2% to GDP. is also conducive. This implies that agriculture is likely to remain a priority. Agriculture contributes 24. jute. Many private sector players engaged in agriculture related business activities have synergy in either backward or forward business linkages related to AEZ¶s 4. first in pulses and fourth in coarse grains.5 million tones) with cold storage facilities available only for 10% of the produce. efforts will be made to provide improved access to the . sugarcane. Sunshine hours and day length are ideally suited for round the year cultivation of crops. snow bound Himalayas to hot humid southern peninsula. animals. 2. 57% of buffalo. 5. rapid transit. Agriculture Export Zones has become a new business opportunity for their entry at any investment level. India is also one of the largest producers of cotton. there has been a considerable emphasis on crop diversification towards horticulture (fruits.4% of country¶s work force. plantation crops (coconut. Many interest groups and development agencies etc. sugar. refrigerated transportation. insects. 12% plants and 10% fish genetic resources of the globe.

Private sector with proven credentials would be encouraged through entrepreneurship development to sponsor new agri export zone or take over already notified agri export zone or part of such zones for boosting agri exports from the zones. It involves a detailed action plan for the development of a specified geographic area /s for effecting systematically greater exports of a specific produce. providing finance at low interest rates and even matching with international buyers. The concept of AEZ can be summerised as ³to produce what could be sold rather sell what is produced´. efforts of State Governments for facilitating such exports. State agriculture universities and all institutions and agencies of the Union Government for intensive delivery in these zones to develop agripreneurship. right from the stage of production till it reaches the consumption stage.produce / products of the agriculture and allied sectors in the International markets by setting up Agri Export Zones. the setting up of processing facilities. and leading to final exports. It is a part of agripreneurship development Thus. Agri Export Zone With the primary objective of boosting agricultural exports from India. The AEZ takes a comprehensive view of a particular produce/ product located in a geographically contiguous area for the purpose of developing and sourcing raw materials. y Integration of the activities of various agencies connected with the department of the product. Under AEZ India has successfully gone ahead to a large extend private entrepreneurs. Objectives The objective of setting up AEZs is to converge the efforts made. The AEZ is expected to give a focus and direction for exports of key agricultural produce with potential from the country. within its schemes and provisions. state governments and local agencies to work under a single umbrella and comprehensively address all the issues relating to each stage of the entire value chain from farm to the ultimate consumer we can penetrate in to new markets in international scenario. storage and related research & development etc. in March 2001. plant protection. By making all central. the entire effort is centered on a cluster approach of identifying the potential products. The major components of this comprehensive concept are y Cluster approach of identifying the potential products and geographical region in which these products are grown. Agri Export Zones (AEZs): AEZ are identified by the State Government. hitherto. . It visualises identification of interventions in a project mode. finally exporting them. y Adopting an end-to-end approach of integrating the entire process. the geographical region in which these are grown and adopting an end to end approach of integrating the entire process. The concept of the Agri Export Zone attempts to take a comprehensive look at a particular produce/products located in a contiguous area for the purpose of developing and sourcing the raw materials. packaging. Services which would be managed and co-coordinated by State Government/Private sector and would include provision of pre/post harvest treatment and operations. by various central and state government departments for increasing exports of agricultural commodities from India. The government helps agripreneurs in sourcing for raw materials. Nodal agency will supplement. Traceability of the produce from the farmer to the end consumer is also very important in global trading. their processing and packaging. right from the stage of production till it reaches the market. who would evolve a comprehensive package of services provided by all State Government agencies. The export zones mooted by the Agricultural and Processed Food Products Export Development Authority (APEDA) to increase international trade in agri-commodities are an attempt to take a holistic approach to encouraging trade in specific commodities located in contiguous areas. These AEZs are spread across 20 states in the country. their processing/packaging. The Central Government has sanctioned 60 AEZs comprising about 40 agricultural commodities till March 2005. processing. Government of India announced a policy of setting up of Agri Export Zones (AEZs) across the country.

They shall fulfill their export obligation through receipt of foreign exchange from ultimate exporters who will make payments from their account. have now been extended to service exporters in the Agri Export Zones.In view of the power intensive nature of most of the value addition. provided cost component of power in the ultimate product is 10% or more and the input out norms are fixed by the advance licensing committee of the Director General Foreign Trade . quality up gradation. comprises the following y Identifying a potential zone based on agro-climatic requirements for a particular crop. y Implementing the same through involvement of private and public partnership and Integrating all the activities till the produce reaches the market. The focus will be on increasing exports of identified commodities. R&D. infrastructure. marketing etc. which were hitherto available to direct exporters. Measures envisaged to promote exports from such zones by Agripreneurs 1) Financial Assistance to motivate entrepreneur Both central as well as state government and their agencies are providing a variety of financial assistance to various agri export related activities. These extend from providing financial assistance for training and extension. which is very important factor for entrepreneurship development. National Horticulture Board (NHB) etc. Exporters of value added agri products will be eligible for sourcing duty free fuel for generation of power. All these facilities have to be dovetailed and extended to promote agri exports from the proposed zones in a coordinated manner to promote agripreneurship. Agencies involved in Sixty Agri Export Zones set up (AEZ) in India for Agripreneurship Development . almost all the exporters of the value added agriculture produce will become eligible for such facility. The emphasis is on partnership on various agencies / systems and convergence of interventions of various agencies like APEDA. The Concept of AEZ¶s which aims to give fillip to agriculture exports through entrepreneurship development. y Integrating various assistance programmes of Central and State Government agencies and providing fiscal incentives to exporters. 2) Fiscal Incentives for the entrepreneurial support The benefits under Export Promotion of Capital Goods Scheme.Agri Export zones are concerned with A to Z of Agri ± exports. Thus even service provided to ultimate exporters will be eligible for import of capital goods at a concessional duty for setting up common facilities. Ministry of Food Processing Industries (MFPI).

constitutes 14% of manufacturing GDP amounting to products value of Rs. . wholesalers. Currently. 80. the food processing sector. transporters. financial institutions. Conservative estimates put processing levels in the fruits and vegetables sector at 2%. fish at 4%. merchants.Need or Rational of Export Market Investme nt required is estimate d to be Rs 350 Crore (US$ 70M) In spite of the vast natural resources and abundant agricultu ral produceIndia ranks below 10th in the export of food products. milk by way of modern dairies at 14%. Food chain clusters (See Figure) are formed with the participation of all stake holders such as farmers.2. bulk meat de-boning is to the tune of 21%. though in the nascent stage.000 Crores. The Internet and mobile communications are used to enable information and financial transfer between the stake holders. recent advances in RFID technology will have tremendous impact in the management of the food chain particularly for source identification and tracking and also in providing supply chain visibility. retailers. It employs 130 lakh persons (13 million) and is supposed to increase at an annual rate of 7%. Information sharing is essential for generating the efficiencies. and insurance companies. Although Agri export zone will boost export but later on they will help to cater domestic market in a cluster form. seed growers. Also. meat and poultry at 2%.

large marketable surpluses and abundant raw materials for agribusiness. Agri exporters shall be entitled for recognition as Export House/Trading House/Star Trading House/ Super Star Trading House on achieving a third of the threshold limit prescribed for exporters of goods. etc. Limited access to credit. low seed replacement rates and an imbalanced use of fertilizers. transport equipment/ refrigerated vans. grading. cold storage. processing. On the supply side. insufficient risk cover. Such services would include provision of pre/post harvest treatment and operations.. no serious reduction of poverty can be achieved. and quarantine and sanitary and phytosanitary standard infrastructure are . X-ray screening facility. On the demand side. If more than 7% is not reached. agriculture must improve its growth rate to over 5%. polishing. The problems of the agricultural sector include low levels of productivity. there is a huge growing market with consumption growth predicted to increase to 7. plant protection. storage and related research & development. packaging. India has a large pool of research manpower. Agribusiness v/s agripreneurship unlocking the Potential of India's Agribusiness through agripreneurship For India to achieve 8-10% growth.( Such activities also promoting entrepreneurship in these sectors) shall be entitled for EPCG Scheme.8%. infrastructure and investment. etc.Present status of India State Governments identified product specific Agri-export zone for export of specific products from a geographically contiguous area and evolve a comprehensive package of services for delivery in these zones. packaging. The service providers as well as the setting up of common infrastructural facilities like sorting. India has major advantages including diverse agro climatic regions. There are weak linkages between research and extension. vapour and heat treatment plants.

enthuse the agricultural fraternity of the country to set a new goal for "AgriExport Revolution" which is not only the need of the hour but also a compulsion to strengthen and revitalize the economy of the country. Considering that two-thirds of the Indian population is employed (either directly or indirectly) in the agriculture sector. Reema Nanavaty. India is on track to becoming the world¶s leading food producer through a number of cross-sectoral initiatives and investment opportunities.000 projects are agri-projects and 10% are agri-related industrial activities. 1717. Director. stated that the biggest potential in India is to mobilize 350 million people who live on less than one dollar a day.30 Cr. Sweden. medicinal plants and processed agricultural products.000 crores in the perishable sector on the backward and forward production linkages in horticulture. There is a need for collective and joint cooperation among farmers to enter into farming and marketing contracts. providing viable and sustainable business opportunities in Indian agribusiness is imperative for generating employment in the country. An NGO in Tamil Nadu has helped 80. Sandvik.197. these AEZs could mobilize an investment of Rs. ( 210. Against these projections. Mobilizing them into entrepreneurship will make a tremendous difference to India¶s economy. The government is bringing 10 million hectares of additional land under irrigation.3 Million US Dollar) in Agri Export Zones The 60 AEZs sanctioned by the Government envisaged an investment of Rs. Sustainable agribusiness ventures can promote job-led economic growth in rural areas through harnessing science and technology for environmentally sustainable and socially equitable development.3 million women and help 4% of the state¶s population. when replicated.00 Million US Dollar) from Agri Export Zones 2. Self. 2107. Honorary Chairman. The government is trying to improve the environment for investment. (19. Actual Export done by Agripreneurs In the year of 2005-2006 Rs. underemployment and disguised unemployment have plagued the country. This programme. problems of unemployment. vegetables. These zones are set up on the basis of produce. a mechanism that provides solutions to marginal farmers in order to absorb such shocks as erratic rainfall. "Yellow Revolution" etc.other inadequacies of the system. Thirty-five percent of these 5. Results produce by Agripreneurs in sixty Agri-Export Zones all over India.000 households. may reach 1.00 crores over the last three and a half years ending 31 March 2005. 2768. Through the Agri-export Zone network.Employed Women¶s Association (SEWA). Actual investment made by only Agripreneurs in the same period Rs. Priority sector lending and credit are expected to double in three years. India. Farmers need to be given direct market access through collectives and cooperatives. Therefore. In order to understand the emerging challenges and to identify ways and means of placing our country as a major player in the global export market for agricultural products Solutions for agri-entrepreneurs Over the years.95 crores and export of Rs. Percy Barnevik. it is not attracting enough investment. said that farmers¶ contributions need to be recognized and should convert into agripreneurship. such initiatives reach 700.47 crores over a period of 5 years. The encouraging results of goal-oriented "Green Revolution". . especially the rural populace.90 crores and exports of Rs. 449. floriculture.00 Cr.000 women organize themselves into self-help groups. It intends to spend Rs 15. new areas and new commodities are likely to emerge such as live animals and animal products. 11821. While India holds an important position in the export market for a set of traditional agricultural commodities. Such projects provide social and economic empowerment to women and will also delay the migration to slum areas. "White Revolution". Results of Last five years affords 1. It is necessary to have agriculture stabilization inputs and funds. Agriculture is seen in a traditional manner and is not treated as an industry. fruits. Rural Development.

apeda.Mckensey report. the prime driver of our economy. In other words. as well as assets and capabilities. Business India 24 issues from 2004 to 2006 . Entrepreneurship and Small Business. entrepreneurship and small business: where are the Boundaries?¶. values wide range of activities people do to make a living. J. 2006 8.org 7.nic. http://www. 2. Nos. (2004) µEnterprise. J.mofpi. they possess. January 2004 4.´ While entrepreneurship has widely been viewed by policy makers and educators alike as the creative act of an independent businessperson. Ahmedabad 380015 India. Holistic approach A holistic approach for cultivating entrepreneurship amongst rural communities at large is essential. CII. we are now learning that the roots of entrepreneurship extend deep into a community¶s civic structure. www. Ciionline.21±34. the root of human development and economic growth is ³livelihoods´ rather than ³jobs. Vol. Indian Economic Survey. 1/2. pp. www. FAIDA Revisited Realizing the potential. Breen. Pankaj Chandra and Devanath Tirupati Indian Institute of Management. April 2003 5. This can be done through sustainable livelihoods that can be generated in the agriculture sector by providing business solutions that envelop natural resource management and innovative eco-technological principles. Reference to this paper has made: 1. 1.P. The µSustainable Livelihoods¶ approach. Business Strategies for Managing Complex Supply Chains in Large Emerging Economies: The Story of AMUL.com/ 6.in/venturesetup/foreign 3.Int.Entrepreneurship in sustainable agriculture is a key factor which has the potential to transform the face of rural India.

Simple and easily understandable literature 3. Developmental marketing 13. Innovative distribution strategies 12. New product designs 4. Utility oriented products 7. Relevant promotional strategies 16. Small unit packing 2.Rural Market Needs 1. Basic packaging 10. Usage of Logos 9. Sturdy(strong) products 5. Taking care of price sensitivity Procurement(Purchase) The importance of procurement function in agro-business is even more since (1) cost of raw material constitutes a very high percentage of the total cost of processed products. Extensive distribution 14. Brand name 8. The importance of agro-processing is increasing in view of the expected large growth of demand for processed products for internal consumption and exports. Demand for professional procurement managers is increasing with the entry of a number of large national and multinational corporations in organized retailing of processed agro-based products. Appointing opinion leaders 15. (2) it involves operations under highly fluctuating markets. and (3) it affects the economy of large number of producers (farmers) often inviting government intervention. . Reusable packaging 11. fresh fruits and vegetables and other agricultural commodities . Proper selection of colours 6.

It processes the crude raw material as well as produces finished products. (Operate full chain) . Eg cloth(textile) 3rd type: Has its own plantations. Buys material from 1st type. Only does crude processing. Eg Lint(ginning) 2nd type: Makes finished goods.In agro-processing there are three distinct types of factories: 1st type: Does not make finished end products.

APMC b. State Agricultural Marketing Board The Board acts as a liaison(link) agency between the Market Committees and the Government for all round development of agricultural marketing in the State.Regulation of Commodity Markets 1. UNCTAD is the principal organ of the United Nations General Assembly dealing with trade. Forward Markets Commission It is a regulatory authority for all Commodity Derivatives Exchanges in India. United Nations Conference on Trade and Development (UNCTAD) The United Nations Conference on Trade and Development (UNCTAD) was established in 1964 as a permanent intergovernmental body. promotion of agri-processing and agricultural export and the establishment and proper administration of markets for agricultural produce in the States. India a. The State Agricultural Marketing Board has been made specifically responsible for setting up of a separate marketing extension cell in the Board to provide market-led extension services to farmers. Forward Markets Commission (FMC) 2. International a) WTO b) United Nations Conference on Trade and Development (UNCTAD) APMC (Agricultural Produce Marketing Committee) Act The Act provides improved regulation in marketing of agricultural produce. which is overseen by the Ministry of Consumer Affairs and Public Distribution. It is a statutory body set up in 1953 under the Forward Contracts (Regulation) Act. investment and development issues. These are To oversee implementation and administering of WTO agreements . World Trade Organization (WTO) WTO is the only international body dealing with the rules of trade between nations. Government of India. The main functions of WTO can be described in very simple terms. development of an efficient marketing system. 1952. State Marketing Board c.

and prawns. medium and large-sized producers. Safal Market This was the initiative by NDDB. It has been formed to establish an alternative market set-up that operates parallel to mandis to stimulate production. farmers. Metro s Cash & Carry s business model brings together small. agricultural . E-Choupal was started to tackle the challenges posed by the unique features of Indian agriculture. coffee.To provide a forum for negotiations To provide a dispute settlement mechanism and Expand the production of and trade in goods and services.inefficient & lack Transparency E-Choupal E-Choupal is an initiative of ITC Limited (a large diversified group in India) to link directly with rural farmers for the procurement of agricultural/aquaculture produce like soya. characterized by fragmented farms. who were unable to effectively bargain in the Mandis and get remunerative prices APMC Act emphasizes on regulation and restrictions on marketing activity which create a situation which is disadvantageous to growers Mandi operations were poorly designed . reduce losses etc. weak infrastructure and the involvement of numerous intermediaries. Recent Innovation in Commodities Markets 1. which came into existence in April 2003 with setting up of a fullfledged trading platform for Fruits and Vegetables at Bangalore. Reasons for NDDB s debut into the Fruit &Veg sector could be Dominated by small farmers. raise quality standards. Metro Cash & Carry Cash and Carry is a new initiative in wholesaling in which services of credit and delivery are replaced with discounts.

with the dispersed community of hotels.cooperatives and manufacturers. . retailers and small to medium business enterprises. caterers. They buy directly from producers and manufacturers and sell to business customers at wholesale centers. they shorten the supply chain and thereby eliminate the high costs associated with a fragmented supply chain. This way. restaurants. traders. under one roof.