Agriculture to Agripreneurship
CA Rishabh Kumar Sawansukha
Think Business.Think BizStreet | Community Commerce & Ai Led Business , Tax and M&A Consulting | Mentoring | Agri-Food-Finance-FMCG-QSR
Doubling up of Farmer's income by 2022 is the most noble agenda set by Government of India. I am glad to go through the research report prepared by Niti Aayog where it has been given significant importance.
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Farmgate to Fork is a concept which can be achieve by inviting private entrepreneurs, re-skilling, focus on High Value Cash Crops , Smart Irrigation, Converting Wasteland into Cultivable land through integrated developmental plans , Agro-forestary , Food and Fodder processing and availability of Soft loans / Grants to develop the infrastructure and ecosystem where 26 million de-graded wasteland can be made cultivable by massive work required at grass-root level in co-operative - public - private partnership .
Forward and Backward integration of Agriculture with lower cost of capital is must due to increased climatic and other risk factors and role of government can play crucial role in creating jobs and prosperity with "Reverse migration".
Why we live in Cities ?
Reasons are opportunity for job / business , better healthcare and education. If all three can travel to 6500 blocks of India (Bharat) , then time is not far that cities will be better and rural areas will contribute 300 to 400 basis point growth in making our economy bigger than 5 Trillion Target taken.
As per NITI Aayog report - Contract Farming and Leasing of land to private entrepreneurs for time bound will help in attracting private interest in this neglected sector .
The Draft Model Contract Farming Act, 2018, is an attempt to provide an enabling environment for contract farming to thrive. First, the Act takes contract farming out of the ambit of Agricultural Produce Marketing Committees (APMCs). Under the Model Act, every agreement shall be registered with a Registering and Agreement Recording Committee, consisting of officials from departments such as agriculture, horticulture, animal husbandry, marketing, fisheries and rural development. The committee can be set up at the district, block or taluk levels. The Act also contains a provision for the creation of a State-level Contract Farming (Promotion and Facilitation) Authority. Dispute resolution is essential to the smooth functioning of the Model Act. Both farmers and buyers need to be protected from risks pertaining to executing the contract. For example, buyers are exposed to the risk of the farmer selling his produce to a third party, whilst the farmer is exposed to the risk of receiving a price below the agreed price. The Model Act contains several provisions for dispute resolution. Briefly, these are (i) negotiation and reconciliation for a mutually acceptable solution, (ii) referral of the matter to a nominated dispute settlement officer and (iii) appealing to the Contract Farming (Promotion and Facilitation) Authority if no suitable solution is found through solutions (i) and (ii).
With recent amendment in Arbitration and Conciliation Act 2019 , we will see advancement in Alternate Dispute Resolution ( ADR) through sectoral expertise entering into this field as per 8th Schedule amendment allowing seasoned experts to render this noble service to nation. Pressure on Courts will be released and win-win resolution will be available in Agriculture - Commercial disputes in lesser cost, faster and time bound manner ( 12 month + 6 month ) as prescribed under the law. Arbitral awards will have legal binding like decree of court and can be challenged only under specified circumstances as defined in the new law.
Worldwide recession will pull in fresh investment opportunities towards Indian Rural, Agricultural and Tribal development activities from mature investors who understands the macro economic cycles fully and capable of driving business worldwide with their Global Vision. This will certainly benefit them to align with the Governmental policies and win-win business models of Rural empowerment , skilling , advanced manufacturing at Farm Gate , development of private label and leveraging global e-commerce supply chains to create seamless supply chain from Farmgate to Fork.
Few decades ago, the term integrated wasteland development was "Theory" but with few veteran experts who worked in this area with untiring consistency , commitment and singular focus , India will achieve its objective of adding 26 million wastelands through integrated product by 2030. We salute Shri Moti Lal Mantoo , who conceived such projects way back in 1998 and besides sanctions on grant and soft loans due to geo-political reasons, it could not pick up till late 2010. Now he has successfully developed and delivered a beautiful model of Co-operative public private partnership in Cold Desert of Ladakh , Village Rambirpura, Thiksey, Leh town , where 219 tribal families are hoping for permanent socio-economic transformation with India's largest apple and apricot plantation being developed in the area. First time cultivation of cash crops like Saffron and Hing. CSIR , Government of India is conducting research on Rose and other flowers , Bumblebees in millions have come in the areas where once upon a time there was not a blade of grass and not a single drop of water. All thanks to ML Mantoo and his team with locals , supported by NABARD , this wonder could have been achieved. There are many more hundreds of success stories waiting to realize the larger and bigger dream of India achieving its glory back.
Visit Ladakh integrated wasteland development project website for daily updates since 2015
www.lfpcl.com