In India, with a seasoned agrarian economy, the agricultural produce market is as dynamic
and continuously evolving as most other hyper competitive industries. This obviously
presents both opportunities as well as challenges for farm entrepreneurs looking to expand
their markets especially in the rural sector.
Let’s look at some of the challenges limiting the expansion of Agricultural produce
markets:
Gaps in Infrastructure: Inadequate transportation modes and lack of proper storage facilities in the rural areas is a critical challenge with reduced shelf life and perishability of their produce. Contrasts and gaps in market information – Earlier there was a challenge in having access to market prices, schemes etc, now with the advent of mobiles and data, there are multiple data sources often contradicting in their information ,hampering the ability of a farmer entrepreneur to make informed decisions about when and where to sell their produce. As population expands, land parcels get fragmented – With more nuclear families, the small and fragmented land holdings limit the economies of scale and use of mechanized tools. This significantly limits productivity and thereby profits.
Seasonality affecting demand: With high seasonality of produce and often weather
playing truant, agricultural markets have become highly seasonal and while some times the
demands peak during the peak, often it crashes just after.
Slow or resistance to adoption of Technology: Slow adoption of modern agricultural
technologies and practices hinders productivity and efficiency even in the times of the
internet.
When a farmer entrepreneur manages to get a good harvest inspite of these challenges,
they often face roadblocks in getting their produce and products into the rural markets and
traders.
Let’s look at some of the roadblocks in rural markets
Logistical challenges:
Lack of good road connectivity and transportation infrastructure makes it difficult to reach these markets or even the now-accessed Urban/semi-urban markets and hampers efficient distribution.
Language and Cultural barriers: As farmer entrepreneurs look to sell directly into
expanding urban markets, diverse languages, and cultural practices across rural areas often
complicate marketing efforts and communication.
Limited financial resources: In spite of a levy of Government schemes and ever-expanding
reach of private financial institutions, the rural population often has limited access to financial
resources and there is a lack of transparency from a farmer entrepreneur’s perspective to
access financial aid.
Access to Markets: Increasing online and offline middlemen often resulting in much lower
prices for the producers. Even with direct-to-home distribution and best price access over the
internet mediums, there is often a feeling of being cheated by the producers.
So what do these throw up as opportunities?
Lets look at some opportunities for new entrepreneurs
Infrastructure development: There is a clear and present opportunity for better cold and
dry warehouses as well as modes of transportation. For a farmer entrepreneur, these can
significantly cut post-harvest or production losses and improve market access.
Market Information: Even in spite of a plethora of online information sources, there is an
opportunity to establish a platform for real-time market information that can empower farmer entrepreneurs to make better and informed decisions, significantly increasing their
income.
Technology adoption and education: There is an ever-increasing opportunity to
encourage the use of modern agricultural practices and technologies. Technology education
about use of the internet for learning new skills and use of new automation tools etc can boost
productivity and efficiency in a big way. There is also a big opportunity for conducting
training and awareness programs to help understand quality standards and market
opportunities.
Building trade relations: Assimilation and developing strong relationships with local trade
partners and retailers can ensure wider market reach opportunities for farmer entrepreneurs
and can broad-based to include other products or services at an opportune time
At 10XG Ventures, we specialize in helping startups and medium-sized organizations set up,
grow, and transform their sales, marketing, automation, and people processes to achieve
repeatable results and business growth with deep knowledge of rural and urban markets as
well as extensive experience in crafting success stories.
Our experts offer one-on-one and group mentoring sessions to help entrepreneurs navigate
these challenges and unlock the full potential of the agricultural produce market. Our
consultants work closely with organizations to develop tailored strategies that align with their
goals and objectives.
