Case Study for Seed production

Brief about the Seed Production Project

• The farmers are facing bigger problem inaccessing seeds on time.

• As soon as the harvest, the farmers are selltheir agriculture produces in the market sothat can repay the loan availed.

• Availability of quality seeds is one of the coreproblems for the small and marginalizedfarmers.

Brief about the Seed Production Project (contd.)

• Velicham has organized youth group in Ambedkar Nagar

since 2007, with the aim to make the youth group as

entrepreneurs. Velicham supported them through Micro

Graam, Bangalore.

• Under the leadership of Mr. Yogaraj, a five member team

was formed among the youth group, and collectively

purchased paddy and groundnut seeds at the time of

harvest. Then they stored the seeds for 3-4 months.

• The loan amount was Rs. 25,000.00

• The loan amount was used to purchase seeds.

• At present they have 15 bags of paddy which

cost Rs. 12,000.00 and 15 bags of groundnut

for Rs. 12,000.00

How much was the loan amount?

Has this loan helped?

• Yes. This loan gave confidence to the team of entrepreneurs.

This is a new experience for them to involve in business.

• It also paved way to increase the family income as well as

ensure individual income.

• The loan offered by MicroGraam met the quality seed

requirement on time to the village farmers. Otherwise, the

farmers depend on the market to purchase the seeds which

are of bad quality.

• The farmers not dependent on money lenders.

How this loan has helped you to improve your business?

• Five members team – Mr. Yogaraj, S/o Pitchaimuthu

– Mr. Rajkumar, S/o Rengaraj

– Mr. Murugesan, S/o Adhi

– Mr. Sakthi, S/o Rathinam

– Mr. Aiyyappan, S/o Rathinam

• This five member team coming together to involve in a business is itself an achievement.

• The stored seeds would be sold out at the right time when the market price increase.

• With in three months of time the business will give a profit of Rs. 16,500.

• The seed will meet out the paddy seed requirement for 30 acres and groundnut seed for 15 acres.

How this loan has helped you to improve your business? (contd..)

Sl.

No.

Name of the

seed

Quantity

purchased

Cost of the

Seed

Expected

Selling Price

Expected

Profit

(Rs.)

1 Paddy 15 bags. Rs. 800 x 15 =

Rs.12000

Rs. 1000 x 15 =

Rs. 15000

Rs.3000

2 Groundnut 15 bags.. Rs. 900 x 15 =

Rs. 13500

Rs. 1800 x 15 =

Rs. 27000

Rs.13500

Rs.16500

Are you planning on taking another loan from MicroGraam?

• Yes. To establish seed bank and for effective

maintenance of the seed bank, we require,

further loan from MicroGraam to meet the

seed requirement the whole village to cover

at least 100 acres of land.

Collective Seed Storage

The team of collective entrepreneurs