TOPIC OF RESEARCH
In this report we examine the discrepancies in the current market structure leading to low incomes of smallholder farmers.
Through secondary research and data, we will cover the key problem areas in the market structure and their effects on farmers.
Areas of intervention were recognised in order to redesign the market in order to alleviate the suffering of smallholder farmers.
The disturbance in the supply chain in lieu of the pandemic of 2020 is further proof of problems existing within the current agricultural establishments in the country. India is home to various sizes of farmers’ markets. Agricultural marketing as a concept is still evolving in Indian society.
DURATION
3 WEEKS
AUGUST, 2020
PROJECT SCOPE
ACADEMIC
RESEARCH | BUSINESS DESIGN
RESEARCH AIM AND SUMMARY
Through this research, we aim to identify certain marketing strategies, areas for digital innovation, redesigning of supply chain and end-delivery mechanisms in a way that, farmers get a fair price for their produce without inflating prices for the consumer.
Some highlights from the problems discovered through research-
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Farming is a labour intensive job for major small farmers primarily because they cannot afford equipment and either rent it or do most of the work on their own.
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It further becomes difficult for farmers to travel to city areas to sell their produce
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They therefore rely on village co-operatives to buy their produce and take it down to bigger mandis and markets.
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The markets are swarming with intermediaries looking to take big cuts from the farmers’ income.
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At the mercy of erratic rainfall, soil erosion, lack of knowledge and equipment and other unforeseen circumstances.
The aim of the report is to set the ground for a service design project. The research led me down the path to researching certain profitable crops or vegetables that solve some of the problems highlighted above.
This research led to identifying the scope of cultivating mushrooms and how certain interventions could have a positive impact on the problems discussed above.
DEVISING A BUSINESS PLAN
The research conducted into the agriculture system was the foundation of the Service Model/Intervention.
Key areas identified for intervention
There are several challenges involved in marketing of agricultural produce owing to limited access to the market information, low literacy level among the farmers.
Multiple channels of distribution that eats away the pockets of both farmers and consumers.
The government funding of farmers is still at nascent stage and most of the small farmers still depend on the local moneylenders who are leeches and charge high rate of interest.
From the findings of the report, it can be concluded that in the mushroom-related services designed- there needs to be an intervention in various points of the agriculture supply chain.
It is evident that there needs to be a secure model with absence of intermediaries who would try to leech off the profits of the farmers.
These basic principles and findings were the backbone of the mushroom cultivation, distribution and marketing service.
Mushrooms were the ideal candidate for this hypothesis since they have high profit margins, low labour intensive, low land and capital requirement.
The other issues involving supply chain, credit acquirement, distribution and marketing are designed and managed by the service called Mushgro.
Service Model to capture Mushroom Production, Marketing and Delivery
LESSONS LEARNED
The main lesson that I learned from the project was taught to me by what followed right after the completion of this project- the release of the new farm laws.
I almost felt guilty for including the lines "India has not witnessed any new agriculture policies whether negative or positive in decades".
The initial ambiguity regarding what the laws stood for and then hearing debates around the politics of the issue, made me realize that how diluted everyone's understanding of how the system actually works, was.
Needless to say, it made me realize how ambitious and idealistic this project was and how it had the possibility of failing on multiple levels- solely because of how unorganized the sector is.
However, the research into the problems and scenario was an eye-opening and extremely enriching experience.