: 3 Entities Share The Private Sector Ideas That Can Transform Indias Farmers #IndiaNEWS #Agriculture The Central government’s recent announcement about introducing long-standing reforms in the agriculture

@IndiaNEWS

Posted in: #Agriculture #IndiaNEWS

3 Entities Share The Private Sector Ideas That Can Transform Indias Farmers #IndiaNEWS #Agriculture
The Central government’s recent announcement about introducing long-standing reforms in the agriculture sector has definitely created a buzz.
In an earlier article on agriculture reforms, we highlighted some of the key reform measures—like lifting restrictions like the Essential Commodities Act and enhancing private sector involvement in practices like contract farming—that could completely overhaul this long-suffering sector.
In this article, we look at three private players and how they exemplify the possibilities of what they can do for our long-suffering farmers from getting them better prices, access to credit, markets and encourage better practices.
Kamatan
Incorporated in 2018, this Bengaluru-based firm currently works with nearly 30 Farmer Producer Organisations (FPOs), which in turn represent almost 40,000 farmers, and 15 large private agri-enterprises like Britannia, Reliance and ITC, amongst others.
What does it do?
In the words of Rohan Patnaik, the co-founder, Kamatan stands for Krishak Agri Marketing And Technology Applications; Nested.
What does that mean? Let’s break it down.
“Krishak is a Sanskrit word meaning ‘cultivator,’ and it covers the essence of our business, and establishes the fact that all our work in the present and the future will be focussed on upgrading the lives of farmers in India and ensuring they obtain higher returns on their produce than what the current supply chain offers,� notes Rohan Patnaik.
Why do FPOs become part of Kamatan’s supply chain if they are talking to farmers?
In India, land holdings are fairly fragmented. As per a recent agriculture census, the average farm size is a measly 1. 08 hectares (nearly 2. 7 acres). In the United States, for example, where the average farm size is about 443 acres when a farmer harvests even a part of their land, they can fill more than an entire truck with produce. If it can fill in more than a truckload, as a cultivator they can have direct distribution linkages to their customers and ship trucks.
In India, even if a farmer decides to harvest his entire landholding, it’ll be difficult for them to even fill one truck. Thus, for major private players in the formal sector to reach out to an individual farmer directly, makes little business sense.
“This is why you need farmers to come together, and they are doing so formally through the FPO set up. The moment we talk to an FPO made up of say 1,000-1500 farmers, we get access to 3,000-5,000 acres of cultivable land, which completely changes the picture. Working with FPOs addresses the individual farmer’s interests, allows operations to scale up, and increases business viability and profit margins.

Stock Market NEWS Best intraday tips Intraday Stocks below 100

Share & Forward! Do Not Share

0 Reactions   React

Replies (0) Report

Login to post a comment!