Win-Win scenario

India is the mitochondria for Agriculture but its contribution to the Indian GDP is lowering due to
the climatic change and attractiveness of other sectors in the economy such as Manufacturing
and services. But Agriculture is one prominent sector which provides direct employment of about
(55%) of population. About 61.5%depends on agriculture of 1300 million Indian population is in
rural. India’s farmland is held with marginal farmers about 67% with holdings less than one
hectare. The second important fact is that India’s poor (some 170 million people) are from rural
area where agriculture is considered as main occupation. It’s the time to change farmer’s poverty
into power by offering various policies and opportunities to encourage farming and to favor the
agricultural growth. It creates base for rise in income level of poor marginal farmers. These
measures can take up by both corporate whose raw material are derived from agriculture and
also by government.
To bring up the farmers the corporate and government look for “collaborative” strategy. The
bottom line of this concept is simple it is possible to “do well by doing good”.

Private
Enterprises
or
corporate

Civil
society or Economic
Developme
Governme development
ntal
ntal and Social
agencies
organisatio transformation
n

Farmers

Co-creation
It is the one way of solution to reduce poverty among farmers. The interconnectedness and
collaboration across the various above mentioned group is important. This approach leads to
economic development and social transformation.
The rural farmers what they need is better approach, an approach that involves partnering with
them to innovate and achieve sustainable “Win-Win” scenario. The corporate and government
involved in this segment provide services to farmers. Like in case of contract farming between
the corporates and farmers the company has to provide extensional and financial support to the
farmers which can result in quality output i.e., raw material. Same in case of Government they
have to consider farmers as “producers”. The best example is Amul where the organization
transfers the lives of rural farmer through group approach and provides opportunity to the
market and credit access. Now the Amul’s product are affordable and also fulfills the nutritional
need of million poor customers. Everyone in the value chain should consider farmers as
“producers” which helps the farmers to fetch good price in the market.
The corporates have to provide growth opportunity and innovations. They have consider farmers
as an integral part of the business.
Win-Win scenario
When corporates provide services and opportunities the farmers are benefited and at the same
time they can also generate profits. This investment is both profitable and sustainable.
Suggested business model to achieve this Win-Win scenario

Supply of Quality raw material and

traceability

Farmers Corporates

Extensional and Financial support

“Direct procurement” is the only way where the corporates and farmers can be benefited. The
other intermediaries in the value chain should be eliminated as they enjoy better margins. The
corporate whoever wants to go for the elimination of intermediaries they have to replace their
roles also by proving assistance to the farmers from financial to other services
How corporate can achieve success through this model
 Build the brand
Educate the farmers
Ensure the supply capacity

Build Profitability
Eliminate other intermediaries in Build sustainability
the supply chain Cost effective value chain from
Overcome structural barriers such as production to Distribution
infrasytyructure and institutional Good relationship with the farmers
support

Most of the companies have not traditionally considered farmers as base for their supply chain.
But now the trend is changing towards the importance of traceability and cost effective where
every company have to consider farmers as important players in the supply chain. This is the
opportunity to farmers to negotiate their requirements. In today’s competitive environment the
companies also have to adapt some strategies to retain the farmers.