SMART VILLAGES & AGRIBUSINESSCreating smart villages through agribusiness

Kiran K. Sharmak.sharma@cgiar.org

1. Harness markets in ways that include the poor

2. Reinvest gains in innovations that move smallholders along the development pathway

3. Manage risks that are stumbling blocks for the poor, building their resilience

IMOD: Three main elements

Vision

• Enhancing agricultural development through entrepreneurship, innovation and partnerships

Mission• To create, leverage and aggregate programs and services to

promote agribusiness and enhance partnerships through entrepreneurship development, innovation and value addition for accelerated agricultural growth

About Agribusiness & Innovation Platform (AIP)

Value-added food products

Serve as a mechanism for agro-technology exchange from ICRISAT and its partners to the private/public sector

Identify and promote innovations and handhold entrepreneurs to establish sustainable agri-enterprises

1Act as a catalyst for Inclusive Market-Oriented Development (IMOD) by linking smallholder farmers to different stakeholders across the agricultural value chains and promoting value addition to farm produce

Facilitate socio-economic development, especially promoting new livelihood opportunities for women and youth

Objectives of AIP

2

3

4

ABI: Improving well-being of poor farmers through creation of competitive agribusiness enterprises by technology development and commercialization.

Components of AIP

Institutional Impacts: Entrepreneur – farmer linkages• Crop & seed demand enhancement• Outreach to farmers• Strengthening farmer resilience

Institutional Impacts: Public/Private sector partnerships• Research linkages with private sector• Subsistence development • New developmental approach

Institutional Impacts:Value addition & nutrition• Creating market demand for SAT crops• Promoting nutritional awareness, dietary

diversity and health • Reducing malnutrition• Ensuring Food Safety and Quality

INP: Developing collaborative research partnerships with public, private and allied sectors to benefit the small holding farmers of dry land tropics across the agricultural and agribusiness value chain.

NPK: Value addition, post harvest management, nutritional and food safety awareness in agri‑food sector through innovative processing, product/technology development and capacity building.

Business Services:

Key Services of AIPTECHNOLOG

Y DEVELOPME

NT

• Scientific support

• Liaising and networks

• Licensing

• Technology validation

• Lab space and equipment

• Testing and trials

CONSULTAN

CY

• Technology

• Business

• Legal/IPR

• Market Research

• Training programs

• Techno-Economic feasibility studies

• Soft-landing services

FUNDIN

G

• Government schemes

• Venture capitals

• Loans

• Angel Investors

• Funding directory

MENTORING

• Business plans

• Business meetings

• Action plans and reviews

• Trainings and workshops

• Mentors network

Business Services:

Incubatee Profile at AIP

Client portfolio2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

0

2

4

6

8

10

12

14

0

10

20

30

40

50

60

70

8070

45

Bio-fuelAg-BioSBVFarm VenturesAg-InICTFood ProcessingClient IntakeGraduated

Clie

nt C

ateg

ory

Clie

nt In

take

/Exi

t

Bio-fuel1%Ag-Bio

13%SBV11%

Farm Ventures24%

Ag-In27%

ICT7%

Food Process-ing16%

Operational Area: AIP in IndiaThe numbers…• 22 BPD Units: 17 ICAR Institutes, 5

SAUs• Start-ups incubated: 1218 with 91

graduations• Innovations nurtured: 52• Jobs created: 219, 973• Technologies commercialized: 331• Farmers benefited: 1.4 lakh• Entrepreneurs trained: 3700• Patents facilitated: 37• Consultancy assignments: 283• Revenue generated: USD 3.74 M• Funding mobilized to clients: USD 2.98

M• Global Agribusiness Incubation

Conferences: 6• National Technology Transfer Meets: 2

SCENEOperational Area: AIP in Africa

UniBRAIN Project

AIP-ICRISAT

FTL ProjectFPBIC Project

FARA; ASARECA; CORAF/WECARD;

CCARDESA; ANAFE; PanAAC

ABI

MEA, GoI; MoFPI, GoI;NARL, Uganda;

CCIMA, Cameroon; CSIR-ARI, Ghana; Mali; Angola INP

MEA, GoI; MoFPI, GoI; RBS, Rwanda; DRSS,

Zimbabwe; MCT, Republic of Congo; NAFDAC,

Nigeria; NPHL, GambiaNPK

Value chain agribusiness incubators established6

Agribusiness start-ups incubated186

Agro-technologies commercialized58

Investment mobilized for incubatees$1.3 m

Agro-innovations scaled up by incubators21

Jobs created through start-ups3218

Additional consortia developed based on UniBRAIN model9

Partners of AIP

Smart Villages & Agribusiness

Focus• How to create energy access and sustainability within villages?• How to improve livelihood and quality of life in rural sector?• How to enhance farm productivity and returns from field by

reducing farm input costs?• How to address carbon footprint at farm-level?• How to promote social ventures to challenge grassroot issues?• Can community-driven interventions lead to smart village and

rural development?

Smart Villages & AgribusinessFPOs as entry point for farm interventions

Agri-Information Center

Agro Services Center

Agro Storage Center

Agro Primary/Secondary Processing Center

Logistics

FPO

FPOFPO

NARS

NGOs

Public/Private

Financial Agencies

Government Agencies

SHG

SHGSHG

SHGSHG

Seed Production & Marketing

Services from support actors:• Knowledge and awareness • Planning and execution of

business models• Technology access• Training on production &

marketing• Provide resources and services• Connect to market

Ag-Tech Start-ups

Linking to other actors down the Value Chain

State Telangana Tamil Nadu Andhra Pradesh

Districts Medak Coimbatore, Nagapattinam, Pollachi

Ananthapur

No of FPOs Registered 5 5 5No of Farmers Mobilized 200 500 50Major Commodities Pulses Cereals

and VegetablesPaddy, Coconut Pulses and Cereals

As a Resource Support Agency (RSA) for Telangana, AIP organized 3 training programs for Telangana POPIs

Progress:• Baseline survey done in all locations of the FPOs • Cluster identification has been done • Awareness meetings are ongoing • Share capital mobilization is ongoing • Discussions with Agriculture & Government Departments ongoing

Farmer Producer Organizations (FPOs)

• Registered under Companies Act, 2013, on 03/02/2016

• Located in Siddipet, Medak district• Covering 7 villages and 7 gram

panchayats• 68 share holders and Rs.68,000/-

share capital • Having 3000 sqft godown on rent• Focus on vegetable production

and marketing • Secured seeds and fertilizer selling

license

SIDDIPET KISAN AGRO PRODUCERS COMPANY LTD

FPO awareness program in Laxmidevipally Village

FPO awareness program in Ibrahimpur village

FPO staff Participated in technical session at Field by Horticulture Department

FPO awareness program in Lingareddypally Village

About a new FPO

• Connecting ICRISAT research and scientists to farmers

• Connecting agribusiness start-ups, services and products to FPO members

• Support FPO management team with business development and marketing assistance

FPOs & ICRISAT

What we also do?

Recently inaugurated eFresh-FDC at Narayankhed; eFresh is an incubatee at ABI-ICRISAT

Original Value Chain

Capacity to Respond

End Market

Requirements

Harmonize grades and standards, trading protocols, process interfaces and information systems

Develop an integratedvalue chain developmentstrategy

Achieve breakthrough improvements in the core value chain functions

Develop forecastingmethods and systems to balance demand and supply more precisely

Customers Customer’sCustomer

Distribution Channel

Extend the value chain forwards

Test Alternative Distribution Channels / Invest in new retail services

SuppliersSupplier’sSupplier

Extend the value chain backwards

Core Vendors

Procure Produce MarketProductDistribu-

tionProcess

Develop a sophisticated inventory replenishment and shipment scheduling capability.

Strengthening the agribusiness value chain

Smart Villages through Agribusiness

FPO

Mini-processors

StorageService Providers

Ecozen Technologies

Solar dryers

Fossil fuel Cleaner energyLow-carbon development pathway

Inputs ProductionProcessing

(village level)

Marketing Consumer

Claro Energy

Energy access• Increase farm

revenue• Improve field

productivity• Lower PH loss• Nutritional security• Enhance quality of

life

Bio-energyBio-gas, bio-mass

Husk Power Systems

Custom hiring models for farm mechanization, irrigation

Linking up for energy access along the Value Chain

Chilling units

SunDanzerChotukool

IOT / ICT ventures on farm management

Critical aspects to be considered

• Defining the problem given the multiple actors, systems and interactions at play

• Develop solutions for the problem• Ability to aggregate demand since it is a dispersed market with diverse needs• Implementing renewable energy model at low-cost• Costing per unit of energy• Minimum turn-around time • On-ground technical support• High risk at initial stage• Addressing gender inclusion• Access points for partners to enter and help attain scale

Opportunities for agribusiness in Smart Village

National Solar Mission of Government of India• US$ 769 m for 5 year period to install solar roof-top systems under grid-system

CSR Act, Government of India• Allows for contributions towards rural development projects, eradicating hunger

and malnutrition, access to safe drinking water, and ensuring environmental stability

Thrust towards promoting FPOs across India• SFAC & NABARD schemes, State Governments

Increasing Government support for start-ups• Start-up India, Tinkering Labs and Fabrication Labs, Accelerator programs and

business incubators VCs looking at clean tech space

• Range of clean technologies that are becoming cost-effective and at scale International Solar Alliance launched by India and France

Smart Villages and off-grid development

Improving farm productivity with FPOs

Food processing and non-farm ventures

www.e4sv.org

Local business

Nutritional security, value-added food product basket

FPOs are made by, for, of farmers

Renewable energy service providers for households

Access to quality education

Thank You

Special Acknowledgement:Dr MS SwaminathanClaro EnergyEcozen TechnologiesYourstory.inGodrej ChotukoolSunDanzer

Jonathan Philroy, AIP-ICRISATTeam AIP-ICRISAT