FTI & Agricultural Industry : A Snapshot

The Background:

Farm Trade India is an initiative taken for providing support to small scale and mid-sized farmers through effective communication and marketing practices.

The overall idea behind FTI is to Increase profitability of Small Scale Farmers through no-frills business model and conforming fresh farm produces to the business customers at better prices than existing system. We ensure grass root level engagement of farmers. Our aim is to create a market where all the stakeholders have opportunities, a Win-Win for all. The goal includes ensuring the best services to be provided to our buyers. We take advantage of the most efficient logistics planning and hassle free process of delivery. Keeping in mind the varying requirements of our buyers, we have different sales models or options catering to their needs.

Snapshot of Agricultural Industry: [i]

  1. Agricultural contribution to GDP: 17.3%
  2. GVA (Gross Value Added): INR 23.82 lakh Crore, GVA of Service Sector: INR73.79 Lakh Crore
  3. Percentage Share of Horticulture in Agriculture: 33% (at 2015-16 7.86 lakh crore) and is increasing
  4. Fruits in Horticulture: 31.5% (2.47 lakh crore), Vegetables share in horticulture : 59.3% which is 4.66 lakh crore (as per 2017 stats published)
  5. Fruits and Vegetables Deregulated in 14 States including MAHARASHTRA, DELHI,  MADHYA PRADESH, KARNATAKA, HIMACHAL PRADESH, HARYANA, WEST BENGAL, ODISHA, RAJASTHAN, CHHATISGARH, GUJARAT from 2016
  6. Demographics of farmers by land ownership: Landless Farmer: 14%, Small Farmer: 60%, Medium farmer: 19%, Large farmer:7%
  7. Agriculture is the main Source of income for 83% farmers. 60% of farmers love agriculture while 40% wish to switch to another profession if provided a chance. Out of these 60% agriculture loving farmers the break-up as per their social class is: Large Farmer: 86%, medium farmer: 85%, Small farmer 74% and landless farmer 44%
  8. Only 10% farmers like farming due to Good Income

Objectives of FTI

  • To empower farmers for presence/trade with the available buyers within and outside their region;
  • Selling farmers’ produces to the potential buyers, creating win-win proposition for both;
  • To impart best practices for export oriented harvest and farm management (through Farm Blogs available in national and all major regional languages)
  • To consolidate the small and mid-size farmers and making them sustain in the market through aggregation
  • Substantially reduce monopoly of intermediaries and dependence on physical market
  • Making agriculture a subject of interest among public, students and several business segments

Key Parameters:

  • Zero Warehousing
  • FTI Connect (Program dedicated towards training and spreading awareness)

Why Zero Warehousing?

  • 25% of fruits and vegetables are wasted due to post harvest losses (due to lack of cold storage facility and ineffective supply chain management)[ii]
  • Product price escalation by 9 times due to the availability of several stakeholders’ in the value chain[iii]