"SFPCL" as the Golden Gateway towards Success of Agribusiness in India*

“SFPCL” as the Golden Gateway towards Success of Agribusiness in India

India is primarily an agriculture country with 60% of its population being dependent directly or indirectly on agriculture. Based on the website policy proposals from India though India is presently the world’s largest producer of pulses and second largest producer of rice and wheat in the world, we still struggle to be living in subsistence. Though it still provides livelihood to many it is still governed by the natural conditions of the country. The various types of farming done in the country includes Subsistence farmingwhich includes production for self-consumption, Commercial farming-where the farmer’s produce is sold in the market for earning money. In this system, farmers use inputs like irrigation, chemical fertilizers, insecticides, pesticides and high yield of variety of seeds, plantation farming – which includes growing of cash crops like tea, rubber spices, and mixed farming – includes raising crops and raring animals simultaneously.

Various crops that the country produces include: Food Grains which include rice, millets, pulses, maze; Commercial crops like Jute, Cotton, tobacco, oil seeds; Plantation crops like tea, rubber; Horticulture  which includes seasonal fruits and vegetables.

Current Situation of Agriculture in India

As per sectorial report August 2014 from IBEF, Agriculture is expected to grow at 4.6 % in 2014. Agriculture production of food grains this year is expected to break the 2011-12 record of 259 million tons (MT). More importantly, agricultural profitability has increased over the last decade with record increases in MSPs (minimum support prices for agricultural produce) for all covered crops. MSP increase in the past 10 years, between 2004-05 to 2014-15, vary from about 125 % for food grains such as wheat and paddy to over 200 % for pulses like moong dal........

Exhibits

Exhibit I: Wastage in the Various Crops

Exhibit II: SWOT Analysis of Farmer Producer Company

Exhibit IV: SFPCL Markets

Annexures

Annexure I: Profile of Mr. Vilas Vishnu Shinde

Annexure II: Project Details

Annexure III: Project Timelines

Annexure IV: Pictures of SFPCL

Annexure V: Selection of Location

Annexure VI: Growth in the Number of Registered Farmers in SFPCL

Annexure VII: Food Processing Industry

Exhibit III:Total export to EU Market for the year 2013 and 2014

“SFPCL” as the Golden Gateway towards Success of Agribusiness in India

Synopsis

The Case entitled “SFPCL The golden gateway towards success of Agribusiness in India” covers various important aspects of the current state of Agriculture in the country. Though India is known to be an Agrarian Economy, the conditions prevailing for the farmers are still below subsistence level. Poverty, illiteracy, family size, small land holdings, societal norms, natural calamities, suicides all put together adds to the agonies to these farmers. There have been the state regulation of agricultural markets was created to protect farmers from the exploitation of intermediaries and traders and also to ensure better prices and timely payment for their produce. But with passing time these markets have, however, have become more bureaucratic conservative and have acquired the status of restrictive and monopolistic markets, providing no help in direct and free marketing, organized retailing and smooth raw material supplies to agro-industries. There is, in the process, an enormous increase in the cost of marketing and farmers end up getting a low price for their produce. Post-harvest losses are estimated to be of the order of 5%-7 % in food grains and 25%-30 % in the case of fruits and vegetables. In this scenario though there are many private players in the market as exporters and supply chain agents, they are more driven to profits rather than bend towards farmer’s welfare. It is important for the farmers to be self-reliant and self-sufficient and this is possible by being a “Farmer Producer Company”. There have been many FPC existing in India, predominantly in the South of the country, but SFPCL has embarked a niche in the agricultural fraternity.................

Case Positioning and Setting

The case study can be used with different perspectives, under the following subject heads as Rural Marketing and/or Agribusiness Marketing. This case can also be used as innovative marketing strategies with Agriculture as the base, Farmer Producer Company (FPC) as an extended and innovative way in Entrepreneurship, innovative ways of Branding and marketing F &V, also as a part of International Marketing. This case can be used as a USP, as value added, as way forward, as assessing the current situation, etc....................

Expected Learning Outcomes

The case covers various aspects of the business which includes:

• • Current state of agriculture especially the horticulture market in India
• • Issues that farmers face, and dealt with in an Agri-economy like India
• • Emerging concept of Farmer producer company
• • Evolution of the concept of Farm to Fork
• • Innovative models in Marketing for a FPC as niche as SFPCL

Assignment Questions

• I. What are the various options of minimizing the risk on the farmer’s produce and getting the due credit to farmers for his produce?
• II. What are various marketing strategies commonly practiced for marketing horticulture produce in India?
• III. Explain the Export procedure for F & V.
• IV. .......................

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