1

Chapter
1
SCOPE AND IMPORTANCE OF AGRI-
ENTREPRENEURSHIP
Manjusha Verma, Lalit Arya, Poonam Kashyap and Ruchi Tyagi

1. INTRODUCTION
Entrepreneurship is one of the key drivers for economic
development. During an economic crisis, the importance of entrepreneurship
development increases. Entrepreneurship has been linked to improved
growth, increased wealth and quality of life. In developing countries like
India, planning and implementation for development of entrepreneurial
programmes are essential for raising the living standard of the vast majority
of the backward regions because of their over-dependence on agriculture
for employment (Uplaonkar and Biradar 2015). Thus, entrepreneurship
development appears to be the best substitute to find employment
opportunities, income generation, poverty reduction and improvements in
nutrition, health and overall food security in the national economy.
Agriculture is considered as the main economic activity which adds
to the overall wealth of the country. In the past, agriculture was seen as a
low-tech industry dominated by numerous small family firms, which are
mostly focused on doing things better rather than doing new things. However,
over the last two decades, this situation has changed dramatically due to
economic liberalization and a fast changing society. Agricultural companies
have to adapt to the erratic demands of the market, varying consumer
habits, stringent environmental regulations, new requirements for product
quality, food safety sustainability, and so on. These changes have opened
the way for new entrants, innovation, and portfolio entrepreneurship.
Farmers, researchers, agricultural business and governments have
recognized this and emphasized for a more entrepreneurial environment in
2

the farming business (De Lauwere et al., 2002; McElwee, 2008; Pyysiäinen
et al. 2006). Agricultural entrepreneurship has a significant impact on
business growth and survival (Verhees et al., 2011). Therefore, it calls both
small scale and large scale farmers to practice entrepreneurial agriculture.
The entrepreneurial skills of farmers need to be developed and
addressed by all stakeholders in the agricultural socio-economic network.
There are various strategies available to farmers for survival and changing
their economic environment which results in business growth. For example,
the farm enterprise may be expanded through tourism or other forms of
non-agricultural business, or by integration of the value chain by engaging
in food processing, direct marketing, or through organic production. The
social and economic environment of farming should not be underestimated
when studying and promoting the development of entrepreneurial skills.
Entrepreneurship can only be improved when the entire agricultural socio-
technical network is involved in the process. Thus, strategies to stimulate
and strengthen the entrepreneurial culture of the farming business and
sustainable development in rural areas are needed. In this chapter we will
discuss the role of agri-entrepreneurs in agriculture development, its scope,
opportunities, importance and success stories of agri-entrepreneurs.
2. DEFINING ENTERPRENEURSHIP
Entrepreneurship is the capability to develop ideas and attain success
with them. Innovation, ability to accept change and risk and the organization
of resources are some of the factors involved in creating a sustainable
enterprise. The entrepreneurial spirit is responsible for generating
employment, competitiveness and the ability to exploit any sector or business
(European Communities, 2003). Entrepreneurship is a feasible approach
for upward mobility, as a 1% increase in entrepreneurial activities decreases
the poverty rate by 2% (Singh, 2014). Entrepreneurs with successful
businesses are self-employed.
The word entrepreneurship means a dynamic process of creating
progressive asset (Shailesh et al., 2013). This asset is produced by individuals
who take the major risks in forms of equity, time and career obligation of
giving worth to some product or services. There are chances that the product
or service may or may not be new or unique but value must be inculcated
by the entrepreneur. Simply we can say that entrepreneurship is the use of
energy for commencing and building an enterprise (Mishra et al., 2010).
Consequently, entrepreneurship is a fascinating notion, widely used and
defined as a creative and innovative response to the environment
(Chandramouli et al., 2007).
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It can also be defined as a process in which a representative

manages to visualize and implement an idea, belief, service, product or
activity (Bernier and Hafsi 2003). Stevenson et al. (1999) describe it as
the quest of an opportunity, whether enough resources are available or not.
Other authors see it as an individual’s efforts to turn a vision into reality,
despite of probability of success. This might indicate that anyone can be an
entrepreneur who has the potential to develop that vision by which creates
his own.
Moreover, it could be interpreted that entrepreneurship is a mutual
phenomenon in which society as a whole can contribute to general well-
being by means of social deal in new products and services.
3. AGRI-ENTREPRENEURSHIP
Investigation suggests that the agricultural sector is comparably
more effective in reducing poverty as any other sector. Food prices reduce
for poor people by increased crop productivity resultant decreased poverty.
Agri-entrepreneurship in common language can be defined as
sustainable, community-oriented, directly-marketed agriculture. Sustainable
agriculture refers a system oriented approach to farming that put emphasis
on the interrelationships of social, economic, and environmental processes.
It is the beneficial combination of agriculture and entrepreneurship and
convert your farm into an agribusiness. This association of agriculture and
business promotes agrientrepreneurs who innovate, identify markets, and
satisfy needs by developing different ways. The term agri-entrepreneurship
is similar with entrepreneurship in agriculture and describes agribusiness
establishment in agriculture and allied sector (Bairwa et al., 2014a).
Entrepreneurship in agriculture can also be defined as the formation
of novel economic organization for the intention of growth under risk and
uncertainty in agriculture (Dollinger, 2003). Contrary, Gray (2002) defines
an entrepreneur as an individual who controls a business with the purpose
of growing the business along with leadership and managerial skills necessary
for achieving those goals.
3.1 NEED AND IMPORTANCE OF AGRI-ENTREPRENEURSHIP
Traditionally, farmers are ignorant of scientific agriculture and
effective agri management systems. Thus, they are unable to deal with
delayed monsoons, drought, crop debts, fake seeds and shortage of fertilizer,
as a result opt to commit suicide. Hence, the managerial, technical and
innovative skills of entrepreneurship applied in the field of agriculture may
4

build a well trained Agri-entrepreneur who becomes a role model to all

such depressed farmers.
Agri-entrepreneurship has the prospect of social and economic
development, for example, employment generation, poverty reduction,
improvements in nutrition, health and overall food security in the national
economy especially in rural areas. In the face of growing unemployment
and poverty in rural areas, there is urgency of entrepreneurship in agriculture
for more productivity and profitability. Agri-entrepreneurship can be used
as chief remedy for the solution of this complexity such as lower the burden
of agriculture, produce employment opportunities for rural youth, control
migration from rural to urban areas, boost national income, sustain industrial
development in rural areas and cut down the pressure on urban cities.
Agri-entrepreneurship program is crucial to build up entrepreneurs
and management staff to deal agricultural industry across the world (Bairwa
et al. 2014b). Agri-entrepreneurship is greatly affected by the economic
situation, education and culture (Singh, 2013). Agri-entrepreneurship is
important for national economy in following ways (Sah, 2009)-
1) Firstly, it helps in achieving productivity profit by small farmers and
amalgamating them into local, national and international markets.
2) Secondly, it helps in decrease in food costs, and provides high-
quality diets to the rural and urban poor in the country.
3) Thirdly, it accelerates growth, diversifying income and develops
entrepreneurial opportunities in both rural and urban areas.
3.2 ENTREPRENEURIAL SKILLS AND CHARACTERISTICS
FOR AGRI-ENTREPRENEURSHIP
Entrepreneurial development is an efficient and a proscribed
development of a person to an entrepreneur. The development of an
entrepreneur refers to inculcate the entrepreneurial skills into a common
person, including the desirable knowledge, higher technical, financial,
marketing and managerial expertises, and building the entrepreneurial outlook.
Entrepreneurial development programmes may be defined as a program
planned to assist an individual in escalating his entrepreneurial drive and in
inculcating skills and capabilities necessary for playing his entrepreneurial
role effectively. In real sense, entrepreneurship expertises are those
competencies which are vital to carry out tasks and activities related to the
farm business, can be developed by learning and experience.
 5

Agribusiness is prominently affected by the personal qualities of

an agri-entrepreneur (Brockhaus and Horwitz, 1986; Nandram and Samson,
2000). Actually, entrepreneurs exhibit general qualities such as consistency,
drive, aspiration, resourceful, problem solving, realistic, and goal-oriented.
An entrepreneur is one who can recognize an unmet need and takes the
risk to chase it. In addition, other qualities include managing productivity,
quest for new markets (Singh, 2013), self criticism, leadership, market
orientation and creativity.
Open minded farm entrepreneurs will identify more problems in
dynamic environment (Hanf and Muller, 1997). According to Man et al.,
(2002) entrepreneurial competences are classified in six key areas viz.
opportunity recognition skills, bond building, managing, strategic competences,
abstract thinking and problem solving skills. Another author selected seven
important success aspects which are organizing and strategic planning,
ecosystem knowledge, skilled and professional staff, thoughtful of the value
chain view, craftsmanship, aptitude to learn and search for opportunity and
creative personal characteristics (Lauweres, 2002). Management and
organizing skills are the complete package that a farmer would utilize in
order to develop the farm business.
Small-size farmers enhanced their competitive ability with the help
of producer organizations and technology innovation. Farmers required
adapting to new situations for survival due to fluctuating agricultural markets
such as ICT, reduced subsidies for agriculture, shifts in consumer demand,
new food production standards (Lans et al., 2013). Agri-entrepreneurship
is entirely different from traditional entrepreneurship as modernization of
agriculture is narrowly focused on highly specialized areas, efficiency, and
productivity in farm management.
Agri-entrepreneurs need to be innovative, curious, determined,
persistence, visionary, hard working, honest, taking risks, being proactive in
identifying opportunities for success, integrity with strong management and
organizational skills (Bairwa et al., 2014a). We can say characteristics of
agri-entrepreneur are an integration of agri-entrepreneur qualities and
competencies (Figure 1).
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Figure 1. Integration of agri-entrepreneur qualities and competencies.

McElwee and Smith (2012) advocated that agri-entrepreneurs

should be confident in their abilities to develop a successful business. Or
we can say, they are internally driven to succeed. Characteristics most
associated with agri-entrepreneurs (Figure 2) includes-

Figure 2. Characteristics related with agri-entrepreneurs.

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4. ENTREPRENEURSHIP DEVELOPMENT OPPORTUNITIES

IN AGRICULTURE
Due to globalization of trade and agriculture and the policy reforms
at national level, the scope and opportunities in the agri-entrepreneurship
have significantly expanded, leading to an extraordinary business interest in
this sector. The world wonders and hopeful for the fast growing Indian
rural market, which is crucial for building corporate growth strategy in the
country. According to surveys, total rural market in India is larger than
urban market.
Agribusiness has offered a large number of prospects for value
addition, packaging, retailing, and exports of agricultural products with
advance technology and management. A large part of Indian population is
reliant on agriculture and this area also supplies raw material for different
industries. Agribusiness is most likely to control the progressive growth of
Indian economy. In present scenario, about one fourth of our fruits and
vegetables are getting spoiled before reaching to the consumer, due to lack
of adequate infrastructure. However, due to rapid shift in the nature of
agribusiness, demand for competent and dynamic professionals has
developed multiple times from last few years. Since policy reforms are
introduced by the WTO regime, the scope and opportunity in the agri-
business has been increased. A huge number of opportunities have opened
in the industries like packaging, supply of raw material, processed agri-food
manufacture, export of agricultural products and other allied fields. Rising
of micro financing, relaxed government regulations, accessibility to high
technology, guidance and workshops on agri and related areas have changing
outlook of highly skilled personnel and resultant they are opting for self
employment in agriculture, mounting the agripreneuership’s prospective in
India (Bairwa et al., 2014a). Pandey (2013) suggests numerous areas of
entrepreneurship in agriculture which include dairying, sericulture, goat
rearing, rabbit rearing, floriculture, fisheries, shrimp farming, sheep rearing,
vegetable cultivation, nursery farming and farm forestry.
The feasible opportunities of entrepreneurship in agriculture are: -
i) Agro produce processing units – Here no manufacture of any new
product done and simply the processing of the agriculture produce
occurs Example- rice mills, dal mills, decorticating mills etc.
ii) Agro Produce manufacturing units – Here the entirely new products
produced based on the agricultural produce as the main raw material.
Example- sugar factories, bakery, straw board units etc.
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iii) Agro-inputs manufacturing units – Here production of goods done

either for mechanization of agriculture or for increasing
manufacturing plants, Example- fertilizer production units, food
processing units, agricultural implements etc.
iv) Agro service centres –These comprise the workshops and service
centre for repairing and serving the agricultural implement used in
agriculture.
v) Miscellaneous areas – Moreover, the following areas may be
hopeful to establish agri enterprises like setting up of Apiaries ,feed
processing units, seed processing units, mushroom production units,
commercial vermin-compose units, goat rearing farmers club,
organic vegetable and fruits retail outlet, bamboo plantation and
jatropha cultivation.
Bansal (2011) has proposed some entrepreneurial areas in
agriculture-
I. Farming- Crop, dairy/poultry/goat, fish, rabbit, vegetables, flowers,
ornamental plants, palmrosa, fodder, sericulture, agro-forestry,
beekeeping, mushroom.
II. Product Marketing- Wholesale, retail, commission agent, transport,
export, finance, storage, consultancy.
III. Inputs Marketing- Fertilizer, agricultural chemicals, seeds,
machineries, animal feed, poultry hatchery, vetmedicines,
landscaping, agriculture credit, custom service, bio-control units,
bio-tech units.
IV. Processing- Milk, fruits, vegetables, paddy, sugarcane, , cashew,
coir, poultry, cattle, tannery, brewery.
V. Facilitative- Research and development, marketing information,
quality control, insurance, energy.
5. TYPES OF ENTERPRISES
According to Uplaonkar and Biradar (2015), different types of
enterprises in agri-entrepreneurship are as follows-
i) Farm Level Producers: Here family is treated as enterprise for
augmenting the production by utilizing the high level of technology,
possessions and demand in the market.
ii) Service Providers: There are varied categories of services
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indispensable at the village level. These include the input borrowing

and distribution, employing of equipment such as tractors, sprayers,
seed drills, threshers, harvesters ‘dryers. It also consists of scientific
services for example setting up of irrigation facilities, weed curb,
plant security, yielding, threshing, conveyance, warehouse etc. and
related opportunities present in the livestock husbandry region for
breeding, immunization, disease diagnostic and treatment services,
along with provision of cattle feed, mineral combination, forage
grains, etc.
iii) Input Producers: There are many booming enterprises which
require significant contribution and such inputs can be produced by
the home entrepreneurs at the village level are biopesticides, soil
amendments, biofertilizers, vermicompost, plants of diverse species
of vegetables, fruits, ornamentals, root media for raising plants in
pots, production of cattle feed concentrate, agricultural tools,
irrigation accessories, mineral mixture and complete feed.
Additionally, opportunities are available in fishery, sericulture and
poultry as well.
iv) Processing and Marketing of Farm Produce: Highly qualified
and skilled persons and higher investment required for well-organized
management of post-production processes. Such enterprises can
be controlled by People’s Organizations like cooperatives, service
joint stock companies or societies. The most successful illustrations
are the dairy cooperatives sugar cooperatives and fruit growers’
cooperatives.
6. MICRO, SMALL AND MEDIUM-SIZE ENTERPRISES
Small-size farmers can deal with issues such as under-employment
and need for new jobs through entrepreneurship as opportunities exist for
farmers to produce value-added agricultural products that are sold in local
markets. Consumer aspires for clearness in the food supply chain which
contributes to localization of agri-food systems (LAS) (Requier-Desjardins
et al., 2003). Rural agri-entrepreneurs can compete against larger
corporations by forming Local Production Systems (LPS) that controls major
quantities of local farm products (Requier-Desjardins et al., 2003). Such
clusters enhance effectiveness in production activities in micro/small/medium-
size enterprises (MSMEs) and decrease business costs.
Micro-businesses are described as employing one to nine people;
small-size businesses have 10–49 employees and the workforces of medium-
10

size businesses range from 50 to 250 people (Andersén, 2012). Additionally,

MSMEs because of workforce sharing establish cooperative–competitive
relationships in these clusters (Trienekens, 2011). Workforce sharing enables
MSMEs to be alert and regulate products or services in response to market
demands. Clustering also assist knowledge sharing, diffusion and innovation
among businesses.
7. VALUE-ADDED AGRIBUSINESS
New opportunities for agri-entrepreneurs have produced due to
preferences of consumer for value-added and locally grown agricultural
products (DeLind, 2002). Value-added products include organic vegetables,
BST-free cheese, unbleached flour, gluten-free food, and heritage apples.
Value-added products are significant as sales of these products produce
extra income for agri-entrepreneurs and for the local and regional economy
(Vogel, 2012). Value-added agri-entrepreneurs embrace technical services
and farm equipment rentals, agro-tourism, forest products and community-
supported agriculture. Hence, farmers with agribusinesses usually earn more
income than those without enterprises. Consumer demand for locally grown
and organic agricultural products has increased (Ikerd, 2011). Agribusinesses
need to label their products properly so that consumers have to pay the best
price for the product. Altogether, such sustainable agribusinesses practices
are important for ecological integrity and economic gain (Ikerd, 2008). It is
observed that agri-businesses using sustainable agricultural practices have
better topsoil and moisture retention, with less erosion and economic loss,
as compared to farmers not practicing sustainable agriculture (Altieri et al.,
2012). Even it is a good opportunity for agri-entrepreneur in developing
countries to benefit from consumers in developed countries who are willing
to pay more for these products as they connect class with sustainable product
(Elliott, 2013). However, there are constraints in developing value-added
products such as lack of access to market information and resources,
infrastructure and institutional barriers. It is important for agri-entrepreneur
to analyze how they can add value to a product and sponsor related costs.
According to Lingelbach et al. (2005) few loans are available to agri-
entrepreneurs in developing countries and networks exist to ensure product
distribution. Lastly, agri-entrepreneurs look for ways to promote their value-
added activities like new products or services could be offered to consumers,
improvement in the distribution network position, or partnership can be
established in order to nurture their businesses. A direct connection is
established between the consumer, farmer, farm and bioregion which
develops a sense of place and connects consumer, producer and place; and
important to one’s social self (Feagan, 2007). This approach is successful
 11

at local and national level.

8. SCOPE FOR AGRI-ENTREPRENEURSHIP IN INDIA
Bansal (2011) presented a detailed account regarding the scope of agri-
entrepreneurship in India and can be understand easily in Figure 3-
1. India is gifted with diverse ago-climate, which assists production
of temperate, sub- tropical and tropical agricultural produce.
2. Demand for agricultural inputs like feed and fodder, inorganic
fertilizers, bio-fertilizers have increased.
3. Applications of biotechnology in agriculture is boon for production
of seed, bio- control agents, industrial harnessing of microbes for
different products.
4. Economic growth will be enhanced by harnessing the export.
According to World Trade Organization (WTO), India has immense
potential to recuperate its present position in the World trade of
both raw and processed form of agricultural commodities. At
present processing is done at primary level only and the rising
standard of living expands opportunities for secondary and tertiary
processing of agricultural commodities.
5. Large coastal line and internal water courses should be utilized for
production of marine and inland fish. Ornamental fish culture already
gaining popularity due to growing aesthetic value among the citizens
of India.
6. The livestock wealth provides vast scope for production of meat,
milk and milk products, poultry products etc.
7. The forest resources can be utilized for production of forestry by-
products.
8. Beekeeping and apiary can be taken up on great extent in India.
9. By improving technique of production, enhancement in domestic
consumption and export of mushroom production can be done.
10. The farmers should be encouraged and educated for organic farming
as organic farming has highest potential in India as the pesticide
and inorganic fertilizer application are less in India compared to
industrial nations of the world.
11. Huge opportunities for production and promotion of bio-pesticides
12

and bio-control agents for protection of crops.

12. Due to plateauing in the productivity of high yielding varieties; seeds,
hybrid and genetically modified crops have the highest potential in
India in the future.
13. Owing to declining groundwater level and labor scarcity for
agricultural operations like weeding, transplanting and harvesting,
micro-irrigation systems and labor saving farm equipments have
potential in coming years.
14. Production of vegetables and flowers under green house conditions
can be harnessed for the export.
15. Trained human resources in agriculture and allied sciences will
acquire on agricultural extension system due to deteriorating state
finance resources and down-sizing the present government
agricultural extension staff as consulting services.
16. Lastly, employment opportunities have increased in marketing,
transport, cold storage and warehousing facilities, credit, insurance
and logistic support services because of enhanced agricultural
production.

Figure 3. Scope of Agri-entrepreneurship.

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9. BARRIERS TO AGRI-ENTREPRENEURSHIP DEVELOPMENT

From the viewpoint of Uplonkar and Biradar (2015), agri-
entrepreneurship development is necessary for improving the production
and productivity. Despite of the fact, the rate of attainment is extremely
low in India due to following reasons-
1. Agriculture is largely a means of livelihood for most of the farmers.
It is difficult for the uneducated small owner to turn their farming
into an enterprise due to lack of adequate information, capital,
technology and connectivity with the market.
2. There is a need to create consciousness among the farmers about
the benefits of these services as they are unaware about it.
3. The free service provided by the Government organizations for
promotion of services should be discontinued. As lots of farmers,
especially the politically associated leaders feel that the government
is liable for providing extension and technical advisory services to
the farmers. In addition, the services of these organizations do not
reach to small farmers, particularly those living in distant areas.
This concept of free service makes the farmers reluctant to avail
compensated services offered by the local self-employed
technicians.
4. There is need of regular back up services for self-employed
technicians, contact with the marketing agencies, suppliers and
research stations who are involved in the development of modern
technologies.
5. They have to face several legal restrictions and obstacles and private
traders involved in such business generally ignore these rules and
disturb the fair trade environment.
6. Lastly, Organizations feels risk in making heavy investments and
implementing modern technologies which affect the profitability.
Thus, resultant farmer members lose interest in their own
enterprises as well as in that of their leaders.
Other authors observed and reported following barriers in agri-
entrepreneurship for agri-entrepreneurs. Firstly, agri-entrepreneurs have
to face changes in consumption, products sought, distribution systems, new
technologies, and industry structure (Boehlje et al., 2011). Parallelly, there
is cut off between the locations where agricultural products are produced,
processed and consumed. Secondly, higher risk and uncertainty in decision
14

making. There is need of innovation, development, and adoption of new

technologies that facilitate increased production efficiency and profitability.
Other hindrances are changes, competition, evolving industry structures
and climate change. Geographic location, farm size, topography, explosive
prices and product supplies, low and erratic earnings, environmental costs,
poverty, insecure livelihoods, lack of access to technology, socio-political
instability, natural disasters, degradation of the environment, gender
discrimination, high start-up costs, problem in obtaining credit for their start-
up (McElwee and Smith, 2012; Pettinger, 2016; Faisal, 2010; Richards and
Bulkley, 2007) as shown in Figure 4. Another major issue which distress
agri-entrepreneurs in developing countries is trans-nationals who purchase
property in their country. Trans-nationals search countries with less stringent
regulation of direct foreign investment as it helps them to enter a market
and gain power of market place activities (Land Matrix, 2015). And resultant
there is reduction in opportunities for local agri-entrepreneurs who lack
access to public media and money. Gender bias is observed in developing
countries (Stupnytska et al., 2014). Transitional economies generally export
agricultural products and it increases poverty, displaces farmers and limited
supply of food available to people living in these countries, especially those
in rural communities (UNIDO. 2015; McMichael. 2005). This affects local
consumers’ ability to procure food and feed their families.

Figure. 4 Barriers to the Agri-entrepreneurship development.

 15

10. MOTIVATION FOR AGRIBUSINESS START-UPS

As we discussed above the challenges and problems encountered
by agri-entrepreneurs, then the question arise is that what prompts them to
start their own business? These entrepreneurs before entering in this venture
assess other job opportunities and impact of that on their family (Lan Matrix,
2015). The major motivation for agri-entrepreneurs is to increase household
income and expand primary agriculture business in order that additional
family members can be engaged (Agnete et al., 2003). In other words,
agri-entrepreneurship may be a source of good living. Secondly, it is good
for individuals who do not have other career options. Some wants to take
advantage of unique resources and use them for competitive advantage in
business operations. Small farmers can remain economically feasible on
expanding their activities and selling value-added products (Lowson, 2002;
Haugen and Vik, 2008). For increasing the likelihood that consumer will
purchase their costly products and provide sufficient profit, product novelty
must be maintained.
11. TRAINING AND EDUCATION PROGRAMME FOR AGRI-
BUSINESS (Uplonkar and Biradar 2015)
India trains over 12000 graduates/year from agriculture and allied
sectors, but only a few are able to find employment. Thus, policy makers
feel urgency to deal with this serious matter through proper educational
planning. Central Sector Scheme of Agri-Clinics and Agri-Business Centres
(AC&ABC) was started on 9th April, 2002 with an objective to complement
the efforts of public extension by assisting qualified agricultural professionals
to set up agri-ventures and can deliver value-added advisory services to
farmers at their door step, besides providing self-employment opportunities
to Agri-entrepreneurs. Under the Ministry of Agriculture, Government of
India, The National Institute of Agricultural Extension Management
(MANAGE), Hyderabad is implementing the scheme of Agri-clinics and
Agri-Business centers. The aim of scheme is to enhance existing extension
network to hasten process of technology transfer in agriculture and
strengthening input supply and services. The educated individuals of such
programmes include agri-graduates, post graduates and diploma holders in
agriculture and allied fields who can set up their Agri-Clinics and Agri-
Business Centers and offer professional extension services to farmers.
Thus, the scheme provides self-employment to the agricultural graduates
and makes availability of better methods of farming to farmers. Specialized
training is provided free of cost to the eligible agricultural graduates. This
course encompasses various aspects of entrepreneurship and business
16

management. Centre for Entrepreneurship Development, (CED) Hyderabad

is one of the recognized Nodal Training Institutes to provide two months
Training Programme.
Other institutes and programmes
1. National Bank for Agriculture and Rural Development (NABARD)-
RBI started NABARD in July 1982 to pay full attention in areas of
agriculture, small–scale cottage and agro-based industries in rural
areas. NABARD is managing all activates of the RBI pertaining
to rural development and agro based activities successfully.
2. Agricultural Technology Management Agencies (ATMAs)- ATMAs
are functioning at district level to make use of the services of
established Agri-entrepreneurs in providing value-added extension
services to farmers on Public Private Partnership mode.
3. Panchayatmandi (Agri-Mandi)- The idea of Panchayat mandi is to
reduce the control of middlemen and traders. This can be feasible
only when working of the Zilla Panchayat is in coordination with
state marketing boards and APMC (Agriculture produce market
committee).
4. State Agricultural marketing banks (SAMB)- Such banks are set
up to actively control markets for food crops and oilseed in bigger
markets of towns and cities.
5. NCOSAMB (The national council for state marketing board)- The
government of India provides grants in aid to states to set up training
facilities with modern facilities and NCOSAMB manage such
programmes of training.
6. State Trading Corporation (STC)- STD is foremost international
trading house possessed by the government of India. The corporation
handles bulk international trades.
7. Farmers Market- This is original initiative from some of the state
governments popularly known by Uzhavar santhai (Tamil Nadu),
Rythu Bazaars (Andhra Pradesh), Apna mandi (Punjab). This type
of market investigates the vast scope for agribusiness
entrepreneurship training to develop business skills and imparted
through KVK.
8. Domestic and Export Market Intelligence Cell (DEMIC)- This
indirectly support business entrepreneurship skills and decision
 17

making skills of agri-entrepreneurs. In addition, it also performs

function of forecasting of prices of commodities.
9. Agro biotechnology agency for rural employment and development
(ABARD)- It is a plan of KAU (Kerala Agriculture University)
and provides training on technologies.
10. Pasumai Padai- It is initiated by Pondicherry government and
focused on farmer’s interests and take actions like hiring agriculture
equipments and machinery.
11. Grape wine growers Association, Maharashtra- It consists of 150
co-operative societies and 500 farmers. This association worked
as international supplier for quality grape.
12. ITC- e-choupal- It empowers farmers knowledge about weather
and price, provide direct linkage between business objectives and
societal goals and provide expertise on business skills and
entrepreneurship skills.
13. Agribusiness Incubators- The agri-business incubation (ABI)
program launched in 2003. It is ajoint venture of the International
Crops Research Institute for the Semi-Arid Tropics (ICRISAT)
and India’s Department of Science and Technology (DST). It
sponsors agricultural technologies developed by ICRISAT, other
R&D centers of excellence, universities and other institutions.
12. EXAMPLES OF SUCCESSFUL AGRI-ENTREPRENEURS
Various success stories of agri-entrepreneurs have been reported
from different sectors and states suggesting their growing importance in
agricultural extension (Srinivas IAS et al., 2014). This chapter presents
some handpicked success stories. This will enhance the awareness of state
agricultural universities, banks, NABARD, Krishi Vigyan Kendras (KVKs)
and ATMAs about the prospective of AC&ABC Scheme in strengthening
agricultural extension. It would inspire and encourage more budding
agricultural professionals to build a wonderful career for themselves.
1. Apple Planet Agri- Clinics
Mr. Bukhari has completed the AC&ABC training at Indian Society
of Agri-Business Professionals [ISAP], Srinagar, during December,
2012. He decided to open an Agri-Clinic to assist the farming
community and creating self-employment. In J&K mostly fruit crops
are grown especially Apple, which needs many sprays of pesticides
18

besides several doses of different fertilizers. He provides extension

service and suggests right doses of pesticides, fertilizers, seeds
and other inputs so that the farmers can grow their crop profitably
and in a sustainable manner. Mr. Bukhari assembled 500 farmers
and bring them under one association, “Apple Planet Agri- Clinics”.
2. Xcell Breeding and Livestock Services pvt. ltd.
Dr. Gajendrakumar Kantilal Bamania, a 33-year old veterinary
doctor with MBA degree in International Agribusiness
Management joined AC&ABC training program at International
School for Public Leadership (ISPL), Ahmedabad. He decided to
develop his business in rural areas, where the necessity of veterinary
services is more as compared to urban areas. He set up a firm
“Xcell Breeding and Livestock Services pvt. ltd.” He also developed
software to monitor the breeding services provided to dairies and
set up afull fledge laboratory. He is providing the following services
to farmers including semen sales, cattle sourcing, cattle sale, herd
recording, artificial breeding merchandise, cattle breeding advice,
bovine semen sale and supply of AI accessories like tags, sheath,
gloves and other farm products.
3. Mobile Agricultural School & Services’(MASS)- Shri Vijay Bharath
laid the foundation of ‘Mobile Agricultur al School &
Services’(MASS) for helping farmers of remote villages in
Jharkhand and Bihar in utilizing modern agriculture technology at
their door step. He got training under “Society for Rural
Industrialization” Ranchi, under AC&ABC scheme. MASS is a
kind of mobile bus service. The bus equipped with audio visual aids
having the information about the latest farm technologies and market
information. The bus carries seeds, fertilizers and pesticides for
sale to the farmers at cheaper costs.
4. Ocean Foods- Shri. Uday Veer Singh Rana, from Haryana, joined
the 2-month training programme of AC&ABC at Indian Society of
Agribusiness Professionals (ISAP), Haryana. During the training,
he noticed a scientific procedure of honey processing. He then
started the honey processing unit by the name of “Ocean Foods”.
He started obtaining and processing honey, flower-wise. The
processing unit is having good storage facility and skilled labours
are engaged in bottling, packing, labeling etc. In the first year itself,
he earned a net profit of 15 lakhs with total sale of Rs. 80 lakhs.
 19

13. CONCLUSION
Agri-entrepreneurship is the call of hours to make agriculture a
more attractive and profitable business enterprise. Agriculture has great
scope for entrepreneurship and this can be harnessed only by effective
management of agri elements such as – soil, seed, water and market needs.
Agriculture and domestic businesses provide about 50% of employment in
half of all jobs in developing countries (World Bank, 2012) but do not produce
adequate income to raise people out of poverty. Thus, entrepreneurial actions
associated with agriculture generate a solution for growing household
incomes. The good managerial skills and entrepreneurial expertise infuse
with government measures would facilitate accomplishment of the growing
needs of agri-business. An individual who is confident, risk bearer, honest,
visionary and innovative can prove to be a right agri-entrepreneur. Agri-
entrepreneurship contributes to the national income along with direct
employment and income to the larger and especially rural areas. Value-
added products offer entrepreneurs with larger return-on-investment and
profit. Therefore, entrepreneurs have to take benefit of change in consumer
demand and satisfy consumers’ needs with value-added products, such as
organically grown coffee.
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 23

Chapter
2
PROCESS OF ENTREPRENEURSHIP
DEVELOPMENT
Anil Kumar, Poonam Kashyap, A.K. Prusty and A. S. Panwar

1. INTRODUCTION
The word entrepreneur originates from the French word,
entreprendre, which means “to undertake”. In a business context, it means
to start a business. The Merriam-Webster Dictionary presents the definition
of an entrepreneur as one who organizes, manages, and assumes the risks
of a business or enterprise. An entrepreneur has been defined as “a person
who starts, organizes and manages any enterprise, especially a business,
usually with considerable initiative and risk”. Peter F. Drucker (1985) defines
an entrepreneur as one who always searches for change, responds to it
and exploits it as an opportunity. Innovation is the specific tool of
entrepreneurs, the means by which they exploit change as an opportunity
for a different business or service. The entrepreneur is commonly seen as
an innovator - a designer of new ideas and business processes. Management
skills and strong team building abilities are often perceived as essential
leadership attributes for successful entrepreneurs. Political economist Robert
Reich (2002) considers leadership, management ability, and team-building
to be essential qualities of an entrepreneur. The entrepreneurial activity is
governed by varying combination of socio-economic, psychological, cultural
and other factors like caste/religion, family background, level of education,
level of perception, occupational background, migratory character, entry
into entrepreneurship, nature of enterprise, investment capacity and ambition/
moderation. Entrepreneurship has been described as the “capacity and
willingness to develop, organize and manage a business venture along with
any of its risks in order to make a profit”.
24

It is an attempt to create value through recognition of business opportunity.

It is basically communicative and management functions to mobilize financial
and material resources. Entrepreneurship may operate within an
entrepreneurship ecosystem which often includes:
1. Government programs and services that promote entrepreneurship
and support entrepreneurs and start-ups.
2. Non-governmental organizations such as small business associations
and organizations that offer advice and mentoring to entrepreneurs
(e.g., through entrepreneurship centers or websites).
3. Small business advocacy organizations that lobby governments for
increased support for entrepreneurship programs and more small
business-friendly laws and regulations.
4. Entrepreneurship resources and facilities (e.g., business incubators
and seed accelerators).
5. Entrepreneurship education and training programs offered by
schools, colleges and universities.
6. Financing (e.g., bank loans, venture capital financing, and
government and private foundation grants).
2. RELATIONSHIP BETWEEN SMALL BUSINESS AND
ENTREPRENEURSHIP
The term “entrepreneur” is often conflated with the term “small
business” or used interchangeably with this term. While most entrepreneurial
ventures start out as a small business, not all small businesses are
entrepreneurial in the strict sense of the term. Many small businesses are
sole proprietor operations consisting solely of the owner, or they have a
small number of employees, and many of these small businesses offer an
existing product, process or service, and they do not aim at growth.
In contrast, entrepreneurial ventures offer an innovative product,
process or service, and the entrepreneur typically aims to scale up the
company by adding employees, seeking international sales, and so on, a
process which is financed by venture capital and angel investments.
Successful entrepreneurs have the ability to lead a business in a positive
direction by proper planning, to adapt to changing environments and
understand their own strengths and weakness.
 25

3. ENTREPRENEURIAL CHARACTERISTICS
An entrepreneur is a person who takes the risk of setting up his
own venture for perceived reward. He is a person who initiates the idea,
formulates the plan, organizes resources and puts the plan into action to
achieve his goals. Being an entrepreneur requires specific characteristics
and skills that are often achieved through education, hard work, and planning.
Desire to succeed: An entrepreneur has a strong desire to succeed in life.
Their dreams are not just limited to achieving one single goal but they
constantly work to achieve higher goals.
Vision: An entrepreneur has a dream and he visualizes the ways and means
to achieve the dream. In doing so he visualizes market demands, socio-
economic environment and technological environment based on which, he
visualizes a future for his business venture.
Technical knowledge: An entrepreneur has full knowledge about all the
technicalities of his business- be it technological, operational, financial or
market dynamics. Entrepreneurs like to know how things work. They take
the time and initiative to pursue the unknown.
Innovativeness: Entrepreneurs do not follow the conventional rules of
thumb. They have a constant desire to introduce something new to the
existing business. They imagine solutions to problems that encourage them
to create new products and generate ideas.
Independence: An entrepreneur’s desire for control and the ability to make
decisions often makes it difficult for them to work in a controlled environment.
An entrepreneur needs independence in work and decision-making. They
don’t follow the rules of thumb but make their own rules and destiny.
Moderate Risk taker: Risk is an inherent and inseparable element of
entrepreneurship. Begley and Boyd concluded that the entrepreneurs who
take moderate risks earn higher returns on their assets than those who take
no risks at all or who take extravagant risks. The entrepreneur assumes
uncertainty of future and minimizes risk through research, planning, and
skill development. An entrepreneur guarantees rent to landlord, wages to
employees and interest to the investor in the hope of earning more than the
expenses in future.
Leadership: Gary Yukl (1994) defines leadership as “the process of
influencing others to understand and agree about what needs to be done
and how to do it, and the process of facilitating individual and collective
efforts to accomplish shared objectives”. Entrepreneurs exhibit the qualities
26

of a leader. They are good planners, organizers, motivators, have good

communication skill, good decision makers, take initiative to implement plans
and are result-oriented.
Human relations ability: An entrepreneur must have good relations with
his clients to earn profit and win their confidence in his products/services.
He must also maintain good relations with his employees to run his venture
on profitable lines.
Hardworking: Entrepreneurs exhibit a great deal of energy to see a venture
start and succeed. At times they are called workaholics. Work is worship
for them. They put in continuous efforts to achieve success and know that
there is no substitute for hard work.
Persistence: True entrepreneurs face bureaucracy, make mistakes, receive
criticism, and deal with money, family, or stress problems. But they still
stick to their dreams of seeing the venture succeed. They are highly optimistic
about achieving their vision. They perceive problems as opportunities and
challenges.
Self-confidence: Entrepreneurs believe in themselves. Their self-confidence
takes care of any doubts they may have.
Flexibility: Entrepreneurs must be flexible in order to adapt to changing
trends, markets, technologies, rules, and economic environments.
4. TYPES OF ENTREPRENEURS
Entrepreneurs can be classified on the basis of several dimensions,
some of which are mentioned below:
A. Classification on the basis of Ownership
1. Founder or “Pure Entrepreneurs”: These are individuals who are
the founder of their business. They are the ones who conceptualise a
business plan and then put in efforts to the plan successful. For example,
Dhirubhai Ambani of the Reliance Group.
2. Second-generation operators of family-owned business: They are
individuals who have inherited the business from their fathers and
forefathers. For example, Mukesh Ambani and Anil Ambani, the two
sons of Dhirubhai Ambani of the Reliance Group now split into two -
Reliance Industries Limited and Reliance-Anil Dhirubhai Ambani Group.
3. Franchisees: It is a method of doing business wherein the parent owner
licenses his trademarks and ‘tried and proven methods’ of doing business
 27

to a franchisee in exchange for a recurring payment. For example,

NIIT has given its franchisee operations to local players after thorough
scrutiny and proper training.
4. Owner - Manager: When a person buys a business from the founder
and then invests his time and resources in it, he is called the owner -
manager. For example, Sabeer Bhatia and Jack Smith were the founder
entrepreneurs of Hotmail, which is now owned by Microsoft and is
known as Outlook.com.
B. Classification based on Personality Traits
1. The Innovator-Achiever: These types of entrepreneurs have a very
high level of motivation to excel. The only drive that pushes them is the
desire to achieve something in life, the desire to make a mark in the
society, the desire to prove their excellence. They do not need any
external stimulus, but are self-driven. These entrepreneurs sense the
opportunities for introduction of new ideas, new technology, new markets
and creating new organizations.
2. The Induced Entrepreneur: These types of entrepreneurs are induced
or motivated by some external factors to start a business. The external
factors could be like government policies, unemployment, family support,
facilitating institutional support, etc.
C. Classification based on the type of Business
1. Industrial Entrepreneur: Industrial entrepreneur is an entrepreneur
who is into manufacturing of a product. He identifies the needs and
wants of the customers and accordingly manufactures products to satisfy
their needs and wants.
2. Trading Entrepreneur: Trading entrepreneur is one who undertakes
trading activities and is not concerned with the manufacturing of
products. He identifies potential markets, stimulates demands and
generates interest among buyers to purchase a product.
3. Corporate Entrepreneur: Corporate entrepreneur is a person who
demonstrates his innovative skill in organizing and managing a corporate
undertaking which is registered under some act that gives it a separate
legal entity.
4. Agricultural Entrepreneur: Agricultural entrepreneurs are those
entrepreneurs who undertake business related to agricultural activities,
like seed, fertilizers, pesticides, farm equipments and other inputs of
28

agriculture.
5. Social Entrepreneur: Social entrepreneur is a person who undertakes
a venture to address some social problems like illiteracy, child marriage,
drug abuse, environmental issues, terrorism, etc. Often such
entrepreneurs do not have profit making motive.
5. ROLE OF ENTREPRENEURS
The position of the entrepreneur in modern production is like that of
the director of a play. Modern economic development is closely linked with
production which is highly complex in nature. The role of an entrepreneur
in modern economic development has at least three aspects:
1. The entrepreneur co-ordinates the other factors of production. This
involves assembling of the factors and ensuring their best combination
for the production process.
2. The entrepreneur takes risks. It is an important function of the
entrepreneur since the quantum of profit he receives is directly
proportionate to the risks he takes. Risks are generally based on the
anticipation of demand.
3. Finally, the entrepreneur innovates. Innovation is different from
invention. Invention is the work of scientists. Innovation implies the
commercial application of an invention. As an innovator, the entrepreneur
assumes the role of a pioneer and an organizational leader.
6. IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC
DEVELOPMENT
Every country tries to achieve maximum economic development,
which depends on human resources to a large extent. But human resource
alone will not produce economic development, there must be dynamic
entrepreneurs. Entrepreneurship is one of the most important inputs in the
economic development of a country. Entrepreneur plays a pivotal role not
only in the development of industrial sector of a country but also in the
development of farm and service sector. The major roles played by an
entrepreneur in the economic development of the country are described as
follows:
1. Employment Generation: Growing unemployment particularly
educated unemployment is an acute problem of the nation. If a hundred
persons become entrepreneur, they not only create a hundred jobs for
themselves but also provide employment to many more. These
 29

enterprises further grow, thereby providing direct and indirect

employment to many more. Thus, entrepreneurship is the best way to
fight the evil of unemployment.
2. Promotes Capital Formation: Entrepreneurs promote capital
formation by mobilizing the idle savings of public. They employ their
own as well as borrowed resources for setting up their enterprises.
Such type of entrepreneurial activities leads to value addition and creation
of wealth, which is very essential for the industrial and economic
development of the country.
3. Dispersal of Economic Power: When a society produces a small
number of entrepreneurs, the enterprise due to lack of competition
grow into a few big business houses. This results in concentration of
wealth in a few families. This can have a serious social and national
implication. When the number of entrepreneurs increases, a large
amount of national wealth is also shared by a large number of
entrepreneurs, thus dispersing wealth.
Also, small-scale entrepreneurship enables such marginalised
groups as women, SC, ST and OBC to pursue their economic dreams
through agro-based rural industries and craft-based cottage industries.
As there are no entry barriers in terms of educational qualifications,
entrepreneurship is an even more attractive career option for such
marginalised groups. This dispersal of wealth promotes the real socialism
and makes the economy healthy.
4. Balanced Regional Development: A rapid development of
entrepreneurship ensures a balanced regional development. When the
new entrepreneurs grow at a faster pace, the increasing competition in
and around the cities force them to set up their enterprise in the smaller
towns away from big cities. The growth of industry and business in
these areas leads to a large number of public benefits like road, transport,
health, education, entertainment, etc. This helps in the development of
the backward regions, thereby promoting balanced regional
development.
5. Development of Backward and Forward Linkages: Every new
business creates opportunities for the suppliers of inputs (this is referred
to as backward linkages) and the marketers of the output (what is
referred to as forward linkages). These immediate linkages induce
further linkages. So, via a chain-reaction, entrepreneurship provides a
spur to the level of economic activity.
30

6. Economic Independence: Entrepreneurship is essential for national

self-reliance. Businessmen export goods and services on a large scale
and earn the scarce foreign exchange for the country. Such import
substitution and export promotion help to ensure the economic
independence of the country.
7. Reducing Unrest amongst Youth: Many problems associated with
youth and social tensions are rightly considered to be due to youth not
being engaged in productive work. In the changing environment where
we are faced with the problem of recession in wage employment
opportunities, alternative to wage career is entrepreneurship. The
country is required to divert the youth with entrepreneurial traits from
wage career to self employment career. Such alternate path through
entrepreneurship could help the country in defusing social tension and
unrest amongst youth.
8. Augmenting National Income: National Income consists of goods
and services produced in the country and those imported. The goods
and services produced are for consumption within the country as well
as to meet the demand of exports. The domestic demand increases
with increasing population and standard of living. The export demand
also increases to meet the needs of growing import due to various
reasons. An increasing number of entrepreneurs are required to meet
this increasing demand for goods and services. Thus, entrepreneurship
increases the national income.
9. Improvement in Living Standards: Increase in the standard of living
of the people is a characteristic feature of economic development of
the country. Entrepreneurs play a key role in increasing the standard of
living of the people. They set up industries which remove scarcity of
essential commodities and introduce new products. They also adopt
latest innovations in the production of wide variety of goods and services
in large scale at a lower cost. This enables the people to avail better
quality and wide variety of goods at lower prices which results in the
improvement of their standard of living.
While entrepreneurship leads to economic development, the vice
versa is also true i.e. economic development also fosters entrepreneurship
development. Growing economies provide a fertile soil for the flourishing
of entrepreneurship.
7. PREDICTORS OF ENTREPRENEURIAL SUCCESS
There are several factors which contribute to the success of an
 31

enterprise viz. organizational, marketing and human relations strategies

adopted by the entrepreneur. Some of the important factors that may predict
entrepreneurial success have been listed below:
1. Methods
 Establishment of strategies for the firm, including growth and
survival strategies.
 Maintaining the human resources (recruiting and retaining talented
employees and executives).
 Ensuring the availability of required materials (e.g., raw resources
used in manufacturing, etc.).
 Use of firm’s unique competitive advantages.
 Ensuring good organizational design, sound governance and
organizational coordination.
 Congruency with the culture of the society.
2. Market
 Use of Business-to-business (B2B) or business-to-consumer (B2C)
models.
 High growth market.
 Targeting of customers or markets that are untapped or missed by
others.
3. Team
 Large, gender-diverse and racially diverse team with a range of
talents.
 Management experience prior to start-up.
 Work experience in the start-up industry.
 Full-time employment prior to new venture.
 Prior entrepreneurial experience.
 Full-time involvement in the new venture.
 Motivated by a range of goals, not just profit.
 Social ties and breadth of business networks.
32

4. Company
 Written business plan.
 Focus on a unified, connected product line or service line.
 Competition based on a dimension other than price (e.g., quality or
service).
 Early, frequent, intense and well-targeted marketing.
 Tight financial controls.
 Sufficient start-up and growth capital.
 Corporation model, not sole proprietorship.
8. RISKS OF BEING AN ENTREPRENEUR
Business is all about taking risks since nothing is certain in business
and an entrepreneur has to take chances or risks to earn profit. These risks
can at times give fruitful result and at times may lead to losses. Given
below are some of the major risks faced by an entrepreneur:
1. Operational risk: Since the entrepreneur is fully responsible for the
business, its success or failure entirely rests on him or her only. The
entrepreneur should acknowledge the production costs and make sure there
is no waste of time and money in order to create and maintain efficient
production.
2. Strategic risk: New entrepreneurs or competitors coming into the
market often prove to be the good replacement for products or services of
an unrecognized firm. Hence, the entrepreneur has to adopt an excellent,
creative and innovative strategy in order to be successful in the market for
long time.
3. Technological risk: In the new venture, there occur several unexpected
developments which need to be tackled effectively in order to sustain in the
business. Many a times, a new and more efficient technology renders the
old technology as redundant. Therefore, the entrepreneur has to keep vigil
on the technological developments and adapt to the changing technologies.
4. Financial risk: Many new businesses don’t make much money in the
beginning, so the entrepreneur has to bear the risk of income during the
initial period. Sometimes, government policies, taxation laws and fluctuating
currency exchange rate significantly alter the profit from the business.
5. Loss of leisure time: It is not unusual for entrepreneurs to work a lot
 33

of extra hours to make their business successful. This is especially true

during the initial start-up process. This results in lack of leisure time for
recreation and relaxation.
9. FACTORS AFFECTING ENTREPRENEURSHIP DEVELOPMENT
Entrepreneurship is influenced by four distinct factors: economic
development, culture, technological development and education. These
conditions may have both positive and negative influences on the emergence
of entrepreneurship. Positive influences constitute facilitative and conducive
conditions for the emergence of entrepreneurship, whereas negative
influences create inhibiting milieu to it.
Economic Factors:
Economic environment exercises the most direct and immediate
influence on entrepreneurship. This is likely because people become
entrepreneurs due to necessity when there are no other jobs or because of
opportunity. The economic factors that affect the growth of entrepreneurship
are as follows:
1. Capital: Capital is one of the most important factors of production for
the establishment of an enterprise. Increase in capital investment in viable
projects results in increase in profits which help in accelerating the process
of capital formation. Entrepreneurship activity too gets a boost with the
easy availability of funds for investment. Availability of capital facilitates
for the entrepreneur to bring together the land of one, machine of another
and raw material of yet another to combine them to produce goods. Capital
is therefore, regarded as lubricant to the process of production.
2. Labour: Easy availability of right type of workers also effect
entrepreneurship. The quality rather than quantity of labor influences the
emergence and growth of entrepreneurship. Most less developed countries
are labor rich nations owing to a dense and even increasing population. But,
the potential advantages of low-cost labor are regulated by the deleterious
effects of labor immobility. The problem of labor immobility can be solved
by providing infrastructural facilities including efficient transportation.
3. Raw Materials: The necessity of raw materials hardly needs any
emphasis for establishing any industrial activity and its influence in the
emergence of entrepreneurship. In the absence of raw materials, neither
any enterprise can be established nor can an entrepreneur be emerged. It
is one of the basic ingredients required for production. Shortage of raw
material can adversely affect entrepreneurial environment.
34

4. Market: The role of market is very important for the growth of

entrepreneurship. In modern competitive world no entrepreneur can think
of surviving in the absence of latest knowledge about market and various
marketing strategies. The fact remains that the potential of the market
constitutes the major determinant of probable rewards from entrepreneurial
function. The size and composition of market both influence entrepreneurship
in their own ways.
5. Infrastructure: Expansion of entrepreneurship presupposes properly
developed communication and transportation facilities. It not only helps to
enlarge the market, but expand the horizons of business too. Apart from the
above factors, institutions like trade/ business associations, business schools,
libraries, etc. also make valuable contribution towards promoting and
sustaining entrepreneurship in the economy.
Social Factors:
Social factors can go a long way in encouraging entrepreneurship.
In fact it was the highly helpful society that made the industrial revolution a
glorious success in Europe. The social setting in which the people grow,
shapes their basic beliefs, values and norms. The main components of social
environment are as follows:
1. Family Background: This factor includes size of family, type of family
and economic status of family. Occupational and social status of the family
influence mobility and provide a source of entrepreneurship to its members.
It has been found that 2-3 times more business is owned by the children of
industrialists than those whose parents do not own a business. The would-
be entrepreneur gains valuable experience through informal learning and
apprenticeship that occurs while working in a family business.
2. Education: Education enables one to understand the outside world and
equips him with the basic knowledge and skills to deal with day-to-day
problems. In any society, the system of education has a significant role to
play in inculcating entrepreneurial values. Although education is not an
essential criterion for an individual to take up entrepreneurship, an educated
person is supposed to be better equipped to understand the intricacies of a
business as compared to an illiterate person.
3. Attitude of the Society: A related aspect to these is the attitude of the
society towards entrepreneurship. In the less developed countries, monetary
incentives have relatively less attraction and people are not economically
motivated. People have ample opportunities of attaining social distinction
by non-economic pursuits. Men with organizational abilities are, therefore,
 35

not dragged into business. They use their talents for non-economic end. On
the other hand, certain societies encourage innovations and novelties, and
thus approve entrepreneurs’ actions for profit-making, acquisition of prestige
and attainment of social status.
It is said that in the nineteenth century in Russia, the upper classes
did not like entrepreneurs. For them, cultivating the land meant a good life.
They believed that land belonged to God and the produce of the land was
nothing but god’s blessing. Russian folk-tales, proverbs and songs during
this period carried the message that making wealth through business was
not right. Similarly, strict compliance of non-violence in Jainism induced its
followers to take up business and leave farming.
4. Political Support: Entrepreneurs flourish in a social setting where there
is ample support from the administrators and policy makers. Peaceful social
environment and supportive taxation policies trigger motivated individuals
to start up a business. Tax holidays and soft loans announced by the
government encourage the entrepreneurs to start new venture or expand
the existing ones. On the other hand, the societies marked by law and order
problems like crime, riots, etc. seldom witness entrepreneurial endeavors.
These phenomena can easily be observed across different states of India.
Psychological Factors:
Many entrepreneurial theorists have propounded theories of
entrepreneurship that concentrate especially upon psychological factors.
These are as follows:
1. Motives: Motives impel men to action. Entrepreneurial growth requires
proper motives like profit-making, acquisition of prestige and attainment of
social status. Ambitious and talented men would take risks and innovate if
these motives are strong. Cole is of the opinion that besides wealth,
entrepreneurs seek power, prestige, security and service to society. Stepanek
points particularly to non-monetary aspects such as independence, persons’
self-esteem, power and regard of the society. Rostow has examined inter
gradational changes in the families of entrepreneurs. He believes that the
first generation seeks wealth, the second prestige and the third art and
beauty.
2. Need Achievement: The most important psychological theories of
entrepreneurship was put forward in the early 1960s by David McClelland.
According to McClelland ‘need achievement’ is social motive to excel that
tends to characterise successful entrepreneurs, especially when reinforced
by cultural factors. He found that certain kinds of people, especially those
36

who became entrepreneurs, had this characteristic. Moreover, some societies

tend to reproduce a larger percentage of people with high ‘need
achievement’ than other societies. McClelland attributed this to sociological
factors. Differences among societies and individuals accounted for ‘need
achievement’ being greater in some societies and less in certain others.
3. Withdrawal of Status Respect: Everett Hagen also stressed the
psychological consequences of social change and explained the psychological
roots of entrepreneurship. Hagen says, at some point many social groups
experience a radical loss of status. Hagen attributed the withdrawal of
status respect of a group to the genesis of entrepreneurship. He believes
that the initial condition leading to eventual entrepreneurial behavior is the
loss of status by a group. He had postulated four types of events that can
produce status withdrawal:
i. The group may be displaced by force;
ii. It may have its valued symbols denigrated;
iii. It may drift into a situation of status inconsistency; and
iv. Its status may not be accepted on migration in a new society.
10. ENTREPRENEURIAL DEVELOPMENT PROGRAMME
Entrepreneurial Development Programme (EDP) means a
programme designed to help a person in strengthening his entrepreneurial
motive and in acquiring skills and capabilities necessary for playing his
entrepreneurial role effectively. In other words, EDP is primarily concerned
with developing and motivating entrepreneurial talent and growing an
individual as an effective entrepreneur. An entrepreneurial development
programme consists of three broad phases:
A. Initial or Pre-training Phase: This phase includes:
1. Activities and preparations required to launch the training
programme;
2. Identification and selection of potential entrepreneurs and providing
initial motivation
3. Identification of suitable enterprise for the potential entrepreneur.
B. Training or Development Phase: During this phase the training
programme is implemented to develop motivation and skills among the
participants. The objective of this phase is to bring desirable changes in the
behaviours of the trainees. The trainers have to judge how much and how
 37

far the trainees have moved in their entrepreneurial pursuits.

C. Post Training or Follow-up Phase: This phase involves assessment
to judge how far the objectives of the programme have been achieved.
Monitoring and follow-up reveals drawbacks in the earlier phases and
suggests guidelines for framing the future policy. In this phase infrastructural
support, counseling and assistance in establishing new enterprise and in
developing the existing units can also be reviewed. Some common activities
in the monitoring and follow-up process are as follows:
i. Preparing and maintaining a separate file for each trainee.
ii. A history card indicating the bio-data of each entrepreneur and the
work done by him.
iii. Keeping in touch with every entrepreneur and passing the desired
information to him well in time.
iv. Visiting every entrepreneur periodically for necessary guidance
and help.
11. WOMEN ENTREPRENEURSHIP
Women Enterprise is defined as an enterprise owned and controlled
by women having a minimum financial interest of 51% of the capital and
giving at least 51% of employment generated in the enterprise to women.
The industries promoted in India by women entrepreneurs usually are
Agarbatti manufacturing, Papad making, Embroidery, Handicrafts for
exports, Batik Paintings, Apparels manufacturing, Catering service, Running
restaurants, snack bars, sweetmeat stalls, soft drink stalls, etc., Running
crèches, Running tutorial classes, typewriting/shorthand institutes, Florist
shops and dry cleaning, Pickle manufacturing, Running working women’s
hostels, etc.
Women constitute around half of the total world population. For
centuries women were treated as home makers. They were confined to
the four walls of houses performing household activities. But now, they
have come out of the four walls to participate in all sorts of activities.
Women are treated equally in teaching jobs, hospitals and administrative
cadres. The global evidences buttress that women have been performing
exceedingly well in different spheres of activities like academics, politics,
administration, social work and so on. Now, they have started plunging into
industry also and running their enterprises successfully. In western countries
women entrepreneurs take up any activity of their choice like electronics,
engineering, building construction.
38

However, the Indian women mostly take up enterprises in low cost,

low value items like food items (pickles, papads, eatables) on embroidery,
handicrafts, lunch packages, etc.. They lack talent and resources,
encouragement from family and conducive environment to take up
challenges. Therefore, the development of women entrepreneurs in the
country is of paramount important for economic development.
12. STEPS IN SETTING UP AN ENTERPRISE
1. Search for Business Ideas: The first step of entrepreneurial system is
search for business ideas. The idea may originate from various sources like
success story of friend or relative, demand for certain products, visits to
trade fairs and exhibitions, study of project profiles, market potential surveys,
meetings with government agencies, etc.
2. Processing of Ideas: Once business ideas are discovered, screening
and testing of these ideas is done to assess their technical feasibility and
commercial viability. Technical feasibility is judged in terms of availability
of required technology, machinery and equipments, skilled labours, and raw
materials. Commercial viability refers to cost-benefit analysis through study
of potential demand, expected sales volume, selling price, cost of production,
break-even point, etc.
3. Idea Selection: After taking into consideration various factors for each
idea, a selection matrix is prepared to analyse the diverse data collected for
selection of the best feasible idea. After the selection of a business idea,
the findings are presented in the form of a report known as ‘Project Report’
or ‘Business Plan’ indicating how to stat and run the enterprise successfully.
This report is useful for getting finances, license, etc.
4. Selecting Business Location: In order to be successful, the
entrepreneur has to select a customer-friendly location and comply with
the business zoning laws of the country.
5. Financing the Business: If sufficient funds are not available with the
entrepreneur to start the enterprise, options are available in the form of
government-sponsored schemes, bank loans, venture capital, research grants,
etc. There are numerous programmes available to assist start-up of an
enterprise for different categories of entrepreneurs.
6. Determining Legal Structure of Enterprise: The next step for an
entrepreneur is to decide which form of ownership is best - like sole
proprietorship, partnership, Limited Liability Company, corporation, nonprofit
or cooperative organization.
 39

7. Getting Tax Identification Number: The entrepreneur has to register

the enterprise with a ‘Business Name’ and enroll with the government
agency to obtain a tax identification number, employee provident fund,
workers’ compensation, unemployment and disability insurance, etc.
8. Obtaining Business Licenses and Permits: As per the laws of the
country, the entrepreneur has to obtain licenses and permits from central/
state governments required for doing the business.
9. Selection of Personnel: Human resource is the most valuable asset of
an enterprise. An entrepreneur has to make decisions regarding:
i. Number of personnel required for management, technical and other
positions in the enterprise;
ii. Qualification and experience of personnel required to perform the
job effectively;
iii. Procedure and methods for selecting the best candidates;
iv. System and criteria for evaluating the performance of employees;
v. Policies and methods for remunerating the personnel; and
vi. Facilities for safety, health and welfare of the staff.
10. Establishment of Enterprise: This is the last step wherein the
entrepreneur integrates all the necessary resources and establishes the
enterprise.
REFERENCES
Drucker, Peter F. (1985). Innovation and entrepreneurship. Harper & Row, New York.
pp.250.
Reich, Robert B. (2002). The future of success. Vintage- Penguin Random House, New
York. pp.304.
Yukl, Gary A. (1994). Leadership in organizations. Prentice Hall, New York. pp.498.
40
 41

Chapter
3
START-UP PROGRAMME FOR AGRI
ENTREPRENEURSHIP
R.K.Naresh, Peyush Punia, Vivek and Sunil Kumar

1. INTRODUCTION
India is predominantly an agrarian economy with 55% population
driving its livelihood from agriculture. In the last two decades, powered by
the Government policies and strong engagement of the industry and
institutions, agriculture is rapidly evolving into agribusiness in terms of
approach and structure. However, in the last one decade, the sector has
been thronged by the stream of educated youth, fired by the ideas, passion
and innovations to launch newer kinds of technology and business models
to lift the face of agriculture from primitive to hi-tech one. These start-ups
are providing missing links in the agri value chain and delivering efficient
products, technologies and services to the farmers on one hand and the
consumers on the other hand. Entrepreneurial development is a systematic
and a controlled development of a person to an entrepreneur. The
development of an entrepreneur refers to inculcate the entrepreneurial skills
into a common person, providing the desirable knowledge, getting higher
the technical, financial, marketing and managerial expertise’s, and building
the entrepreneurial approach. Entrepreneurial development programmes
may be defined as a program designed to help an individual in strengthening
his entrepreneurial motive and in acquiring skills and capabilities necessary
for playing his entrepreneurial role effectively. This situation can be changed
by generating employment opportunities for them in rural areas itself. Agro
entrepreneurship can be used as paramount medicine for the solution of
this complexity. Developing entrepreneurs in agriculture will solve the entire
problem by following means:
42

(a) Trim down the burden of agriculture

(b) Create employment opportunities for rural youth
(c) Control migration from rural to urban areas
(d) Increase national income
(e) Sustain industrial development in rural areas
(f) Cut down the pressure on urban cities etc.
2. THE WORLD OF THE AGRI/FARMER-ENTREPRENEUR
Farmer-entrepreneurs are free and independent, they do not work
alone. They operate in a complex and dynamic environment. They are part
of a larger collection of people including other farmers, suppliers, traders,
transporters and processors, each of whom has a role to play in the value
chain. For farmers to cope with the risks they will face in the complex
world in which they compete, they need to develop an entrepreneurial spirit.
A farmer with an entrepreneurial spirit energetically, enthusiastically and
carefully makes many different decisions about his farm in the context of
the value chain that influences the profits of the farm business. This is all
happening in a dynamic, ever-changing and uncertain setting.
The ‘way of life’ of a farmer-entrepreneur
• Freedom in making decisions about the business and the relationship
with family
• Control over what has to be done, when and in what order
• Working alone often in solitude
• Coping with a wide range of managerial and ‘day to day’ tasks
• Lives with uncertainty; if you can’t generate profit you may not
survive in the future
• Risking personal assets and security
• High level of responsibility and risk of failure
• Lives with an inability to control the actions of stakeholders upon
whom the success of the business depends
• Develops trust and alliances with other stakeholders where mutual
benefits exist
• Works long and irregular hours to meet demands
 43

• Closely interwoven family and business life

• Social status is linked to the success of the business
• ‘Learns by doing’ under pressure from stakeholders, by solving
problems, experimenting, seizing opportunities, and learning from
competitors
Agri. Entrepreneurial businesses evolve through five phases:

Establishment

Survival

Early growth

Rapid growth

Maturity

3. ENTREPRENEURIAL QUALITIES
There is a difference between farm business management and
entrepreneurship. Farm business management is about better planning,
implementation, control and managing risk. Entrepreneurship is about looking
forward – identifying opportunities, creating a vision of how the business
will grow, innovating and taking risks. A farmer who thinks of the farm as a
business that has potential to grow and develop is an entrepreneur.
44

Entrepreneurial farmers look at their farms and see ways to make them
more profitable; they develop ideas and then translate them into action.
They need self motivation, perseverance and confidence with an ability to
plan and organize the farm business. These qualities enable entrepreneurial
farmers to seek-out business opportunities, conceptualize and initiate new
business ideas and guide the farm business to accomplish the goals set.
Knowledge
Entrepreneurs need more than just their personality or personal
traits. They need ideas, opportunities, and resources. Knowledge allows
farmers to make informed choices. It puts them in a better position to
compare the current practices being used with alternatives. Farmers obtain
knowledge through experience and observation - from listening to and
learning from other farmers, observing how things are done and then
practicing it themselves. Extension workers are another source of
knowledge. Information and its communication is an important aspect of
knowledge creation and accumulation.
Farmers need knowledge in each of the key areas of farm
management: planning, implementing and controlling. They also need
information about primary production, harvesting, processing, wholesaling
and retailing and about input supply, financial services, and transport,
packaging, promotion and advisory services.
Entrepreneurial Competencies
There are nine key entrepreneurial competencies for a farmer-
entrepreneur: initiative, ambition, focused problem-solving, creative thinking,
taking risks, flexibility and adaptability, interpersonal abilities, networking
and readiness to learn. With these competencies, farmers will be more able
to compete in this new environment and make profits by taking advantage
of new market opportunities. These competencies can be acquired through
practice, experience and training.
Technical Competencies
In addition to being entrepreneurs, entrepreneurial farmers must
also be excellent farmers. This requires technical competencies particularly
in three areas: managing inputs, managing production and managing
marketing.
Managerial Competencies
Entr epreneur ial and technical competencies need to be
 45

complemented by managerial competencies in the functions of diagnosis,

planning, organizing, leading and controlling. The farmer-entrepreneur
performs these functions in each of the key areas of the farm business:
managing inputs, production and marketing.
Integrating Competencies
Success as a farmer-entrepreneur comes through the ability of the
farmer to combine the entrepreneurial, technical and managerial
competencies in practice.

Characteristics of an entrepreneur
It is the characteristics that enables entrepreneurial farmers to seek-
out business opportunities, conceptualize and initiate new business ideas,
gather the physical, financial, and human resources needed to start the
business, set goals and guide the farm and all it resources to accomplish
those goals. Not all farmer-entrepreneurs have all of these traits to the
same degree. But they will have all of them to some degree. Without their
core values of trustworthiness and honesty, their problem-solving nature,
their flexibility, their drive, the sense competition and their confidence, they
would not really be entrepreneurs.
In order for good farm managers to become truly entrepreneurial
they will need to utilize their entrepreneurial qualities and managerial skills
in effective way by following means:
46

Capturing value within the value chain

Producing for the market is the first response of farmer
entrepreneurs to the opportunities found along the value chain. But like
entrepreneurs, farmers will want to diversify their livelihoods to make them
more sustainable and more profitable. One way to do this is by capturing
value within the value chain.
Enhancing and managing efficiencies in production
Farmer-entrepreneurs need to be skilled at finding and using
opportunities to expand their businesses. But they also need to be efficient
in utilizing resources, and in transporting and marketing produce.
Promoting new technologies and innovation
New technologies are needed in order to adapt to a changing
economy and a changing market. Farmer entrepreneurs are not only
consumers and users of these technologies but should also be active
participants in designing, testing, adapting and introducing them to the farming
system.
Sustaining land management
The foundation of most farm-based businesses is land. While it is
tempting to produce as much as possible over the short-term, a successful
farmer-entrepreneur knows that the value of the land lies in its ability to
continue producing profitably for generations. Sustaining land is a key
element of the long-term success of the farm business.
Broadening management skills
As the farm business grows, it becomes more and more complex.
Farmer-entrepreneurs need to continue increasing their managerial ability
to meet the demands of increasing complexity.
Trustworthiness and respect in business
The long-term success of any business depends on it being
conducted with trustworthiness and respect. These qualities assure partners
along the value chain that farmers are reliable, that their deeds match their
words and that they respect everyone with whom they work.
Promoting group entrepreneurship
Group entrepreneurship can occur when a group of likeminded
farmers are willing to work together on a joint enterprise. This often requires
 47

support from extension workers to organize the group and facilitate linkages
along the value chain. The challenge is to know when to stop their support
and hand overall management and entrepreneurship functions to the group.
Managing farm businesses according to a long-term plan
Daily pressures on the farm business require farmers to make many
immediate decisions. These decisions need to be made within a broader
vision that guides the development of the business. Farmers must ensure
that they are managing their farm businesses with a long term plan for the
business so that it stays on course and its direction is not determined by
day-to-day decisions.
4. CORE VALUES OF ENTREPRENURES
 Trustworthiness: Worthy of trust and confidence. Includes such
values as integrity, keeping promises, loyalty, dependability and
reliability. Actions are consistent with words.
 Truthfulness: Honest and true in all business dealings.
 Respect: Regard for the dignity, worth, independence and essential
equality of all people. Treating people with courtesy, politeness and
kindliness. Tolerance of others.
 Responsibility: Acknowledging and performing duties to others.
Being self-disciplined and accountable for one’s actions.
 Fairness: Making decisions based on appropriate factors. Being
impartial; avoiding conflicts of interest. Being reasonable and
consistent. Playing fair.
 Caring: Having regard for the well-being of others. Being kind,
compassionate, considerate, unselfish and charitable.
 Social responsibility: Recognizing and living up to community
and social obligations. Being law-abiding. Doing one’s share.
Contributing to the betterment of society.
5. DIFFERENT TYPES OF CONTRACTS IN ENTREPRENEURSHIP
 Market-specification contracts: the farmer agrees to produce
to an agreed quality.
 Production management contracts: the buyer participates in
production management through inspecting production processes
and specifying input usage.
48

 Resource providing contracts: the buyer supervises production

and supplies key inputs. The buyer often owns the product and
farmers are paid by volume.
Capturing value chain by introducing value-adding enterprises
An important way to capture value along the value chain is by
integrating with or buying into the value adding enterprises along the value
chain. There are a number of ways – individually and collectively – to do
this:
Pre-production enterprises
Start supplying or buy into businesses that supply inputs and other
resources such as seed, fertilizer, pesticides, tools and equipment.
Post-harvest handling of products
Start providing or buy into businesses that provide post-harvest
operations and processes that add value to products, including cleaning,
cooling, packaging labeling, packaging, transport and marketing.
Post-harvest processing of products
Start processing or buy into businesses that process agricultural
commodities into more refined products.
 Each of these represents a value-adding possibility in which
entrepreneurial farmers can become involved to capture value within
the value chain. If they can organize the necessary finances, they
can establish a business to provide one or more of these functions.
 However, for many newer farmer-entrepreneurs, expanding into
these areas may not yet be possible. Still, they will recognize and
evaluate these opportunities and use connections and contacts to
find ways to create linkages so they can increasingly capture a
share of the value being adding along the value chain.
 Extension workers can play a major role in helping farmers identify,
investigate and evaluate opportunities in the value chain. They can
also help facilitate access into or linkages with these opportunities
in a measured and sustainable way.
6. PROMOTING INNOVATION AND NEW TECHNOLOGIES
 Farmers may need to develop or adopt new technologies and
practices in order to cut costs and increase efficiency.
 49

 Extension workers can facilitate farmer-farmer and farmer-

research partnerships to identify, develop and test new technologies
 New information and communication technologies are needed to
share information with farmers.
6.1 Five Principles of Innovation
These five principles can help farmers take advantage of a new innovation:
I. Know what the innovation does and how it works.
II. Analyze the opportunity to see if people will be interested in using
the innovation.
III. Effective innovations are simple and focus on a specific need or
opportunity.
IV. Effective innovations start small. Focus on a small, limited market,
with a product requiring little money and few people to produce
and sell it. As the market grows, fine-tune its processes and stay
ahead of the emerging competition.
V. Aim at leading the market from the beginning. An innovation that
aims at leading the market (e.g. dominating a small specialized
market) is more likely to be successful.
7. SUGGESTIONS FOR IMPROVEMENT IN STARTUP
PROGRAMME FOR AGRI- ENTREPRENEURSHIP
 Provision for separate fund of agri. entrepreneur.
 Provision of special infrastructure facilities required.
 Arrangement of special training programmes of agri.
entrepreneurship
 Felicitation of successful rural entrepreneurs to encourage
entrepreneurship among people.
 Agri-entrepreneur should more competitive and efficient in the local
& international market.
7.1 The Central Government Entrepreneur schemes for Agricultural
are listed below:
 Assistance to NCDC Programed for Development of Cooperatives
 Capacity Building to Enhance Competitiveness of Indian Agriculture
50

and Registration of Organic Products Abroad

 Scheme of Cold Chain for Farmers credit linked subsidy
 Cold Storage Unit - Basic Mezzanine Structure
 Scheme for Cold Storage Unit - PEB Structure for farms subsidy
 Cold Storage Unit using Technology for Controlled Atmosphere
 Dairy Entrepreneurship Development financial support
 Development Strengthening of Agricultural Marketing
Infrastructure, Grading and Standardization
 Establishment of Agri-Clinics and Agri-Business Centers.
 Fodder and Feed Development for Farmers, dairy cooperatives,
NGOs etc.
 Gramin Bhandaran Yojana A Capital Investment Subsidy for
Construction Renovation of Rural Godowns.
 Horticulture for Post-Harvest Management Projects for farmers.
 Scheme of Horticulture in Open Field for farmer’s subsidy.
 Horticulture in Protected Cover for organizations subsidy.
 Marketing Research and Information Network Government of
India.
 Post-Harvest Technology and Management Grant, machinery and
contingency expenditure.
 Promotion and Strengthening of Agricultural Mechanization through
Training, Testing and Demonstration.
 Refr igerated Transport Vehicles for Societies and other
organizations Subsidy.
 Small Farmers’ Agriculture-Business Consortium – Agriculture-
Business Development investment.
 Strengthening of Agmark Grading Facilities for farmers expenditure
to purchase of equipment, chemicals etc.
7.2 Government of India Schemes for Agriculture Entrepreneurship:
 Government of India Schemes for Chemicals and Fertilizers
Entrepreneur
 51

 Government of India Schemes for Commerce and Industry.

 Government of India Schemes for Food Processing Business and
Entrepreneurship.
 Schemes for Commerce and Industry.
 Central Government Entrepreneur Schemes for Tribal Affairs.
 Government of India Schemes for Urban Development.
 Scheme of National Urban Information System (NUIS) Financial
Aid for urban local bodies.
 North-Eastern Region Urban Development Programed (NERUDP)
Financial assistance to states.
 Pooled Finance Development Fund Central Government of India
Sponsored Scheme.
 Prime Minister ’s Rural Development Fellows (PMRDF)-
Government of India.
7.3 List of Government sponsored Subsidy Schemes under
NABARD
 Government Sponsored Subsidy Schemes in NABARD.
 Centrally Sponsored Scheme – Subsidy For Organic Farming and
Production of Bio-fertilizers
 Centrally Sponsored Scheme For Setting up of Rural Godowns
and Storage Infrastructure
 Centrally Sponsored Scheme for Agricultural and Marketing
Infrastructure Up-gradation
 Capital Investment Subsidy Scheme for Setting up Of Agri-clinics
and Agribusiness Centers.
 Warehouse Infrastructure Fund for Construction of Cold Storages,
Warehouses, Silos and other Cold Chain Infrastructure.
 Deendayal Antyodaya Yojana – National Rural Livelihoods Mission
(DAY-NRLM)
 Scheme for promotion of Women SHGs (WSHGs) in backward &
LWE districts of India
 Capital Subsidy Scheme for Technology Up-gradation of Micro &
52

Small Enterprises
 Long Term Irrigation Fund for Farmers to Build Irrigation Canals
 National Livestock Mission for rearing of Pigs, Poultry, Buffalos
and Rabbits.
 Funding for Setting up Food Processing Units and Food Parks
 Capital Subsidy-cum-Refinance Scheme for Installation of Solar
Off-grid
 GoI Scheme – Dairy Entrepreneurship Development Scheme
7.4 Related Schemes of other Agencies:
 Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
 National Horticulture Board (NHB)
 National Horticulture Mission (NHM)
 Small Farmer Agri-Business Consortium (SFAC) assistance to cold
storage
 Agricultural and Processed Food Products Export Development
Authority (APEDA) assistance for cold chain
 Development Commissioner Micro, Small and Medium Enterprises
(MSME)
 Food Processing Unit
 Venture Capital by Small Farmer Agri-Business Consortium (SFAC)
 Venture Capital by SIDBI Venture Capital Ltd. (SVLC) Funds
Details of SVLC.
 Ministry of Micro, Small and Medium Enterprise.
REFERENCES
Bairwa SL, Lakra K, Kushwaha S, Meena LK, Kumar P. (2012). Agripreneurship
Development as a Tool to Upliftment of Agriculture. Int. J. Sci. Res. Pub, 4 (3): 1-
4.
Chandra shekhra, P. (2003). Third wave in Indian agriculture: introduction to Agriclinics
and agribusiness centre scheme. MANAGE Ext. Res. Rev., pp. 10-20
David Kahan (2012). Entrepreneurship in farming. (FAO, Rome)
Drucker (1985). Innovative and Entrepreneurship, Practice and Principles. Harper & Row
Publishers.
 53

Global Agrisystem (2010). Evaluation Study of Agriclinics and agribusiness center Scheme,
Global Agrisystem Private Limited, New Delhi
Pandey, R. K. (2009). Perspectives on Agripreneurship and Rural Development. Banaras
Hindu University.
Sandeep Saxena (2012). Problems Faced By Rural Entrepreneurs and Remedies to Solve It
IOSRJBM. 3(1): 23-29.
54
 55

USE OF ICTs IN AGRICULTURAL

ENTREPRENEURSHIP
Sunil Kumar, Udita Chaudhary, A.S. Panwar, Kamlapreet Kaur and
N. Ravisarkar

1. INTRODUCTION
Since time immemorial, timely information and communication have
mattered in agriculture. Ever since man began cultivating land, rearing
livestock and catching fish, he has sought information on the best farming
strategies, improved seeds and feed, and how to realize the best prices for
their produce in the market. Farmers may have planted the same crop for
centuries, but weather patterns, soil conditions, and pests and diseases have
changed over time, and this makes agriculture-related timely information
all the more pertinent for the stakeholders. Farmers rarely find the answers
to their queries easily, while similar uncertainties arise season after season.
Updated information allows the farmers to cope with and even benefit
from these changes. Providing such knowledge can be challenging, however,
because of the highly localized nature of agriculture that information must
be tailored specifically to distinct conditions.
With the background of these challenges, the arrival of Information
Communication Technology (ICTs) is well-timed. The benefits of the green
revolution greatly improved agricultural productivity. However, there is a
demonstrable need for a new revolution that will bring lower prices for
consumers (through reduced waste and more efficient supply chain
management), contribute to “smart” agriculture, and incentivize farmers
(for example, through higher income) to increase their production. Public
and private sector actors have long been on the search for effective solutions
to address both the long- and short-term challenges in agriculture, including
56

how to answer the abundant information needs of farmers. ICT is one of

these solutions, and has recently unleashed incredible potential to improve
agriculture in developing countries specifically.
Technology has taken an enormous leap beyond the costly, bulky,
energy-consuming equipment once available to the very few to store and
analyze agricultural and scientific data. With the booming mobile, wireless,
and Internet industries, ICT has found a foothold even in poor smallholder
farms and in their activities. The ability of ICTs to bring refreshed momentum
to agriculture appears even more compelling in light of rising investments in
agricultural research, the private sector’s strong interest in the development
and spread of ICTs, and the upsurge of organizations committed to the
agricultural development agenda.
But what exactly are ICTs? And can they really be useful and
cost-effective for poor farmers with restricted access to capital, electricity,
and infrastructure? First, an ICT is any device, tool, or application that
permits the exchange or collection of data through interaction or
transmission. ICT is an umbrella term that includes anything ranging from
radio to satellite imagery to mobile phones or electronic money transfers.
Second, these ICTs and others have gained traction even in impoverished
regions. The increases in their affordability, accessibility, and adaptability
have resulted in their use even within rural households relying on agriculture.
New, small devices (such as multifunctional mobile phones and
nanotechnology for food safety), infrastructure (such as mobile
telecommunications networks and cloud computing facilities), and especially
applications (electronic money transfer or tracking an item moving through
a global supply chain) have proliferated. Many of the questions asked by
farmers (including questions on how to increase yields, access markets,
and adapt to weather conditions) can now be answered faster, with greater
ease, and increased accuracy. Many of the questions can also be answered
with a dialogue—where farmers, experts, and government can select best
solutions based on a diverse set of expertise and experience.
2. DAWN OF ICTS IN THE RURAL AREAS OF INDIA
If we go back in time, it was radio that first arrived in the vast
space of rural India where about 60% of our population resides. The All
India Radio (AIR), which is now more popularly known as Akashwani,
started broadcasting in the 1930s. The reach of radio in rural India far
exceeded that of television for two reasons: it was cost-effective and more
accessible. Radio was already contributing significantly in reaching out to
farmers and disseminating timely information in the United States of
 57

America. In 1966, the then Union Minister of Agriculture, Bharat Ratna C.

Subramaniam, played an instrumental role in introducing Farm & Home
Units at seven AIR stations in the country. This marked the beginning of a
new era of farm broadcasting in India. The objective condition to utilize the
services of All India Radio was the launch of Intensive Agricultural District
Programme (IADP), which aimed at providing a package of scientifically
evolved and proven agricultural practices to farmers in selected districts of
the country. It became imperative that the scheme be supported by strong
agriculture information service. Besides creating Information Centers in
IADP districts, it was decided that seven Farm & Home Units be located
near these centers. In course of time the number of such units was increased
to sixty across the country.
From the day it was started, the farm & home programmes of AIR
were felt to be enormously powerful and effective to realize the objective
of the betterment of farming community. All India Radio supported the
Intensive Agricultural District Programme and advocated various improved
strains of crops for the farmers of different geo-climatic conditions of the
country. The advocacy gained considerable credibility among farmers as
the broadcasts were duly supported by suitable linkages at the ground level.
The magnitude of farmers’ response and faith in radio extension could be
gauged from the fact that ADT 27 variety of improved paddy grown by
Tanjaur farmers came to be known as ‘Radio Rice’.
A novel experiment called “Radio Rural Forum” was jointly
sponsored by the Ministry of Information and Broadcasting and UNESCO.
All India Radio, Pune organized some listener groups comprising 15-20
people each in 150 villages of 5 districts of Maharashtra, viz. Nashik,
Ahmednagar, Pune, North Satara and Kolhapur. The scheme was hailed
as a tremendous success and gradually extended to the whole country.
Further, another experiment called the “Charcha Mandal” for training the
farmers was initiated and organized by the Ministry of Agriculture and it
was also found to be a wonderful success as more than nineteen thousand
Mandals were organized in quick time and qualitative interactions were
enlisted. Farm School of AIR was one of the most innovative devices based
on intensive training modules on specific agricultural and allied subjects.
The listeners were registered for each of the specialized courses. After the
course, the participating farmers appeared in an examination for the
organizers to assess the extent of knowledge transfer. The successful trainees
were rewarded with suitable prizes. Altogether 1,200 farmers registered
themselves at AIR Bangalore, 950 at AIR Delhi, 30,000 at AIR Cuttack,
over 54,000 at Sambalpur, nearly 7,200 at Trichur, 9,529 at Rajkot and 6,682
58

at Madras. Farm Schools on AIR soon became very popular and studies
carried out by various agencies revealed its considerable impact on the
cropping pattern of the area.
2.1 Doordarshan: Doordarshan had a modest beginning as an experimental
telecast starting in Delhi on 15 September 1959, with a small transmitter
and a makeshift studio. Regular daily transmission started in 1965 as a part
of All India Radio. Krishi Darshan started telecast on Doordarshan on 26
January 1967 and is the longest running program on Indian television.
The television service was extended to Bombay (now Mumbai)
and Amritsar in 1972. Up until 1975, only seven Indian cities had a television
service and Doordarshan remained the sole provider of television in India.
Television services were separated from radio on 1 April 1976. Each office
of All India Radio and Doordarshan was placed under the management of
two separate Director Generals in New Delhi. National telecasts (DD
National) were introduced in 1982. In the same year, colour TV was
introduced to India. Now, Doordarshan transmits through a network of
nearly 1,400 terrestrial transmitters. There are about 46 Doordarshan studios
producing TV programmes that currently reach 92 percent of the Indian
Population, and it telecasts programmes on agriculture and rural
development. The DD National programme also telecasts 30-minute
agricultural programme, Krishi Darshan, in Hindi, six days a week. It
covers various aspects of agriculture and related activities such as
horticulture, animal husbandry, dairy and rural life. The narrow casting
kendra’s produce locally relevant programmes in local language and dialect
and these 30-minute programmes are telecasted 5 days a week.
2.2 Television: In the nineties, private TV channels like E-TV started
telecasting daily programmes on agriculture. E-TV currently telecast
agricultural programmes in Telegu, Kannada and Marathi languages every
day. Similarly, most of the private regional TV channels telecast agricultural
programmes at least once a week. Newspapers (especially local language
dailies) and farm magazines are important sources of information for
farmers. Newspapers, especially those in local languages, provide at least
one page every week for news and articles on different aspects of agriculture.
Special farm magazines also reach a large number of farm households.
India has one daily on agriculture, Agrowon, in Marathi published from
Maharashtra. Agrowon has a circulation of 100,000 copies and the
readership is estimated as 15,00,000. However there is a wide variation
among states in this regard and there is a lot of potential for using print
 59

media in those states and districts where literacy levels are higher.
2.3 Kisan Call Centre: The Ministry of Agriculture (MoA) initiated the
“Kisan Call Centre” (KCC) scheme in January 2004 to provide information
to farmers seeking information on telephone, by the local agricultural
specialists in their local language. Farmers could call the nation-wide toll
free number of 1800-180-1551 and the calls are picked up in 25 KCCs
located across the country by agricultural graduates at Level-I, with provision
of escalation to Level II and Level III. Until July 2010, 49.32 lakh calls
have been received from the farmers in the KCCs. (Chandragowda, 2010).
It uses a backend data support system, which is inbuilt into the overall MIS
(Management Information System). The MIS software captures callers’
details and specifications of the query which helps in analysing area-wise
and crop wise details within a time space framework and provides preventive,
advance action solutions. Lack of adequate experience of fresh graduates
at level I and difficulties in contacting concerned experts staff at level II
and III (who are located elsewhere and are not often available to answer
queries) is currently constraining the implementation of KCCs (Sulaiman et
al 2011).
2.4 Mobile Internet: The internet and mobile phones arrived in India in
1995 but it took almost a decade for both mediums to make a real dent. It
took even more time for both internet and mobile phones to make their
presence felt in rural India. It was not before 2010 that mobile phone sales
in rural areas started increasing. According to Telecom Regulatory Authority
of India, currently there are 499 million mobile subscribers in rural India
(June, 2017) of which 109 million users own smartphones. Furthermore, 47
million use mobile internet (IAMAI and Kantar IMRB’s Mobile Internet
Report 2016). As brands take the mobile route to reach and engage their
target audience in rural areas, it is clear that innovation is the need of the
hour. The availability of affordable smart phones and feature phones and
better internet connectivity at affordable rates by telecom providers have
played a significant role in the adoption of mobile internet in the last one
year. According to a report published jointly by the Internet and Mobile
Association of India (IAMAI) and KANTAR-IMRB in early 2018, mobile
internet penetration in rural India remains as low as 18%. The figure for
urban India stands at 59%.
The number of mobile internet users has gone up by 17.22% from
December 2016 to December 2017. The rate of mobile internet adoption
will continue to increase and is estimated to reach 478 million in 2018.
Urban India witnessed an estimated 18.64% year-on-year rise, while rural
60

India witnessed an estimated growth of 15.03% during the same period.

Mobile internet is predominantly used by youngsters, with 46% of urban
users and 57% of rural users being under the age of 25. Urban India has
around twice the proportion of users over the age of 45, while the age
range of 25 to 44 has almost equal distribution of users in urban and rural
areas.
3. AFFORDABLE ICT’S
The proliferation of adaptable and more affordable technologies
and devices has also increased ICT’s relevance to agriculture. Innovation
has steadily reduced the purchase price of phones, laptops, scientific
instruments, and specialized software. Agricultural innovation in developed
countries has become more applicable to developing-country needs. The
intuitive design of many technologies and their capacity to convey information
visually or audibly make them useful to people with limited formal education
or exposure to technology. Mobile-based applications are also becoming
more suitable for poor and isolated communities, especially though feature
phones. Drawing on simple, available technologies such as SMS, service
providers can offer mobile banking, other transactional services (selling
inputs, for example), and information services (market price alerts). Other
publicly and privately provided services such as extension and advisory
services are delivered over mobiles, which are increasingly not just “phones”
but are actually multifunctional wireless devices.
Geospatial information is also becoming easier to access and use
as mapping tools, such as Microsoft Earth or Google Maps, bring
geographical data information to non-specialist users. Scientists and
development organizations have created substantial sets of georeferenced
data on population, poverty, transportation, and any number of other public
goods and variables through more affordable, usable geographic information
systems available on standard PCs and mobile devices using web-based
tools. Satellite images and similar representations have improved
exponentially in quality and detail.
These tools and remote sensors use less energy and require less
human attention than in previous years. The capacity to overlay geospatial
information with climate and socioeconomic data opens many options for
analyzing biophysical trends (such as erosion or the movement of pathogens),
making projections (about the effects of climate change or the best location
of wholesale markets in relation to transport infrastructure), and selecting
particular groups to test new technologies or farming practices (for instance,
identifying farmers that are most likely to benefit from using e-vouchers to
 61

purchase fertilizer).
Greatly increased data storage capacity and the ability to access
data remotely and share it easily have improved the use of ICT in agriculture.
Sharing knowledge and exchanging data have created opportunities to
involve more stakeholders in agricultural research—involvement facilitated
by an improved e-learning environment and networking capacity. Advances
in data storage and sharing have improved the ability to exchange
information—for instance, between departments and levels of government—
and avoid costs associated with data transmission charges.
Improvements in data storage and sharing have underlying causes.
The capacity of hard drives and the speed of microprocessors have continued
to rise, making it dramatically cheaper to store data. Cloud computing offers
access to numerous shared computing resources through the Internet,
including sharable tools, applications, and intelligently linked content and
data. These advances address some of the information and communication
constraints of agricultural research institutions, government offices,
cooperatives, and development organizations. Benefits of enhanced data
capacity range from more accurate targeting of agricultural development
programs to better preparation for handling surpluses or scarcities at the
farm level.
4. USING ICT’S IN AGRICULTURAL ENTREPRENEURSHIP
(OR AGRIPRENEURSHIP)
To start an ICT venture in agriculture, it is important to understand
the agricultural value chain. An entrepreneur can provide services to various
customer segments and stakeholders besides farmers. An ICT solution
could be created to improve the efficiency of input suppliers, cooperatives,
processors, exporters or point-of-retail-sales, yet many entrepreneurs do
not consider all of these existing gaps. Young entrepreneurs who wish to
venture into e-agriculture service provision should carefully consider specific
areas and value-chain and stakeholder segments that they could target in
order to offer unique value propositions. Entrepreneurs generally develop
ideas by either connecting with a problem they have encountered or by
identifying existing needs in a given community. Ideas are then generated
in response to the needs observed. An initial solution is conceived in order
to respond to the demand or need identified. Market analysis is then
conducted to gather information about the demographic composition (age,
sex, education level, civic associations, profession/job etc.) and trends in
the community to determine the target market and its nuances. Funds would
62

then be sought from investors, the government or other stakeholders. Further

customer development can be done. These steps are not necessarily
chronological.
Once the target market has been defined, the product or service is
developed and pretested with the target group. Pretesting involves the
entrepreneur trying to gauge the reaction of potential buyers and users of
the product and/or service. Pretesting is very important for obtaining
feedback and making adjustments based on concrete customer feedback,
which can boost profitability potentials and avoid costly mistakes. When
the product is deemed to be ready for its targeted market, it is then officially
introduced.
Apart from using pre-existing knowledge of the agricultural makeup
of a country or region the start-up wants to serve, the best approach is to
search for recent publications, for example, by the country’s Ministry of
Agriculture and international institutions such as the Food and Agriculture
Organization of the United Nations (FAO). Information to seek includes a
government’s priority cash and food crops, and livestock and/or fishery
data. This information should also point to the region in which the agriculture
activity is taking place. In addition, knowledgeable agricultural experts could
be consulted. Similarly, in a quickly developing telecommunications market,
one must identify what level of connectivity and models of ICT use exist in
the country/region and, more specifically, for the potential target audiences
of the proposed service.
ICTs can be leveraged across the agricultural value chain to improve
areas including research and development, access to inputs, production,
marketing, wholesale distribution, retail and traceability. Therefore, firms
need to identify which part of the value or service chain they seek to serve.
Dalberg (2013) noted three areas with the highest perceived ICT need
within the agriculture sector: supply-chain management; communication,
awareness and marketing; and information management. Two ancillary
cross-cutting segments that also present opportunities are agricultural finance
and risk mitigation (notably through insurance schemes). Start-ups should
identify gaps in services offered along the value chain and avoid, if possible,
areas where competition is very strong. For example, many apps are
developed to improve general access to markets, but most of them struggle
to generate revenue. Other areas for which (social) entrepreneurship can
be ventured into are agriculture-related sectors such as livestock or fisheries,
or issues and segments such as consumption of agricultural products, drone
uses, etc. The determining factor, however, should be the existence of actual
 63

needs and the ability to address customer values. Using ICTs in emerging
markets requires a broad view of what technology will be used, its availability
and whether there are adequate devices within the target population. Table
1 lays out a number of options for mobile-based services.
Table 1: Options for Mobile-based Services
Minimum Delivery Method Requirements Minimum Device Requirements
Basic: sms Basic: Basic mobile phone
Intermediate: Interactive Voice Response (IVR) Intermediate: Basic mobile phone
Advanced: Mobile and web-based applications Advanced: Feature phone, Smart
phone, Tablet

Source: Woodard et al (2014)

When determining the likelihood of success in a particular

agripreneurship venture, there are three major investigative steps the
entrepreneur has to follow: big picture (knowledge of the host country’s
business environment and macro trends for crop consumption); middle view
(identifying what portion of the value chain to focus on and what ICT
platform to use); and a start-up-based SWOT analysis.
5. RECENT DEVELOPMENTS IN ICT APPLICATION
Of late, young people are using ICTs as a launching pad for initiation
of range of entrepreneurial activities. With ICTs, it is possible to explore
low-income generation opportunities; involving telephony and the use of
mobile phones, role of young people as information intermediaries, e-
commerce and establishment of telecasters. Many of such paradigm shifts
have been observed for last one decade and have potential to be generalized
for overall entrepreneurship development. Some of the examples worth
mentioning are as follows:
Pondicherry-Information Village Research Project: The project was
implemented by the M.S Swaminathan Research Foundation, for
Pondicherry fisherman. Computers were placed in the village center and
connected to the Internet, through which regular weather reports of the
Indian astronomical office could be accessed. The weather report is
broadcast by loudspeakers and through VHF radios which enabled
fisherman to determine low and high tide before sailing off to the sea to
fish. This created a lot of agripreneurship development in Pondicherry.
The Farmers Information and Technology Service (FITS-Techno-
Pinoy): It is a web-based information service initiative in the Philippines.
64

FITS aims to contribute to the empowerment of farmers, processors,

entrepreneurs and traders and provides information and technology service
that facilitate decision-making by rural communities. This leads to improved
production, processing, trading and marketing. The initiative intends to link
with organizations, networks and technology services and existing resources
into a centre near the farmers and uses the Internet, traditional media, and
face-to-face information delivery and access at local level. This has opened
a new path for rural development in Philippines.
The Mango Information Network (MIN): MIN is a web-based
information service that provides information on market outlook, pest
management, directory of players in the mango industry, a virtual meeting
place and extension research. MIN is relevant to farmers, farmer
organizations, co-operatives, frontline agents and entrepreneurs and offers
a question and answer service. Simple “fact sheets” are also available in
print or accessed on the web. This network has created a lot of
entrepreneurship development especially in the field of agriculture and allied
fields in Philippines.
The Potato Extension and Training Information System (PETIS):
The Faculty of Agriculture of the University of Mauritius has developed
this computer based information system. PETIS uses the internet and will
test whether rural communities can use the web to access information.
The system, destined principally for the small-scale potato growers, is
equipped with audio file that provides information in English. Illiterate users
have an option that reads the summary of the contents in Creole and Bhojpuri,
and icons and pictures that enable most rural users to navigate easily the
basic levels on the site. The system has been rated very successful and the
research team is now exploring touch screens (Lukeeram et al 2000). This
has ushered the path for agripreneurship development especially in the
field of potato marketing and cultivation.
In Bangladesh, ICTs have transformed the lives of rural people
and village women. The women have started small-scale enterprises, through
small loans from the Grameen Bank to buy mobile cell phones that have
been used for telephone services and earn them good income. Much of the
voice traffic over the cell phones is commerce directed — access to
agricultural market prices, access to agriculture trade information, facilitation
of remittances from foreign workers, information on work opportunities,
using the phone to reduce substantial travel costs (Don Richardson, personal
communication 1999).
The Grameen Bank (Bangladesh) has been so successful in
 65

providing jobs to rural poor entrepreneurs and connecting the community to

the world, and is being replicated in dozens of other countries. Most buyers
are women, and meet weekly to discuss loan payment and other health and
development issues. This has created a new group of women entrepreneurs
in Bangladesh.
Samaikya Agritech P. Ltd. in Hyderabad, Andhra Pradesh operates 18
“Agritech Centres”, which provide agricultural support services to farmers
on a commercial basis. They are permanently operated by qualified
agricultural graduates called Agriculture Technical Officers (ATO) and are
equipped with computers linked to the head office in Hyderabad through a
modem-to-modem telephone connection. Through these centres Samaikya
provides technical assistance to member farmers; inputs such as seeds,
fertilizers and pesticide, machinery hire, tools and spares for sale; soil and
water analyses; weather monitoring; field mapping; weekly field inspections
and field visits by specialists. Farmers register with centres and pay per
growing season (two or three seasons per year) a fee of Rs.150 (about
US$3) per acre/crop. A farmer registers by the field and receives support
services that are specific to the fields registered. On registration, the farmer
provides detailed information concerning his farming activities; the
information is kept in the centre’s database, providing the basis for the
technical support provided.
The centre in the village of Choutkur has 53 registered farmers,
covering 110 acres of registered land. This is out of a total of around 1,000
farmers within the centre’s catchment area. Major crops include sugar
cane, padi and pulses. Advice from the centres is based on data generated
from pre-validated crop cultivation practices adopted in the State and provided
by government agricultural services and local institutions. Farming
information is up-linked from headquarters to the computers at the centres.
If farmers have specific needs for information that cannot be satisfied
immediately by the ATO at the centre, then the technician completes an on-
line enquiry form on the computer and transmits this via modem to the
headquarters. At the headquarters, specialists with more experience and
qualifications organize and coordinate replies, which are typically transmitted
back to the centre within 24 hours. The database and information systems
are operated in the English language. Information is interpreted for the
farmer by the ATO. Because some farmers are illiterate, the technicians
have to spend time with explanations and descriptions. There is no standard
for a computerized Telegu script. Prior to setting up a centre, Samaikya
performs a survey of local farming and cultivation practices and ascertains
the political and cultural context of the potential centre. It conducts a pre-
66

launch programme to familiarize farmers with the services. One centre

closed down within three months of opening as no farmers registered for
the service. This was due to the pressure placed on them by local marketeers,
financiers and suppliers of inputs who perceived a threat to their livelihoods
from the competing Samaikya services. Farmers were told that anyone
who registered with the centre would not receive credit or essential supplies.
7. USE OF MOBILE APPS
Spreading agricultural related information to farmers in the poorest
communities are made easier by proliferation of mobile phones. Today,
mobile apps and services are being designed and released in different parts
of the world. Mobile apps help to fulfill the larger objective of farmers’
empowerment and facilitates in extension services which can address the
global food security issues. Few mobile apps developed for farmers are:
Kisan Suvidha mobile app provides information on five critical
parameters—weather, input dealers, market price, plant protection and
expert advisories. An additional tab directly connects the farmer with the
Kisan Call Centre where agriculture experts answer their queries. Unique
features like extreme weather alerts and market prices of commodity in
nearest area and the maximum price in state as well as India have been
added to empower farmers in the best possible manner.
Pusa Krishi app helps farmers to get information about latest technologies
developed in research labs. This app is actually transferring the technologies
from “LAB to LAND”. Agrimarket mobile App can be used to get the
market price of crops in market within 50 km of the devices location. This
app automatically captures the location of person using mobile GPS and
fetches the market price. Crop Insurance mobile app can be used to
calculate the Insurance Premium for notified crops based on area, coverage
amount and loan amount in case of loanee farmer.
8. CONCLUSION
Strong partnerships must be built with local media stations and
organisations to spread awareness and, eventually, garner support. Agriculture
is still viewed as a largely subsistence and unprofitable activity. This view
affects how innovative pitches, plans and requests for finance are treated.
Changing the perception of agriculture from a merely manual, low return,
strenuous and purely on-farm activity is a crucial step in altering the fortunes
of the sector. The negative perception of the sector is deeply entrenched
and is manifested most evidently in terms of the availability of capital and
finance in general. The issue of capital and finance for agriculture operates
 67

at both private sector and government level (where already limited youth-
oriented finance schemes that spur entrepreneurial ventures do not consider
the specific nature of the agriculture sector). In the private sector, agriculture
is conceived as a high-risk enterprise and so loan requirements (collateral)
and terms (interest, repayment period and general conditions) are onerous
(beyond the means of both young and older farmers).
Uptake of technologies at market prices in a sector that has
traditionally been heavily subsidized remains challenging, but farmers are
prompt to identify what works in their interest and are ready to pay for it.
Digital technologies offer the potential to achieve the necessary conditions
for scale, with distributed low cost and customized delivery, creating a unique
opportunity for private enterprise and innovation to thrive. The challenge
before India lies in balancing high growth with inclusive growth; leveraging
technology to achieve these twin goals will be a fascinating journey to
track.
On the whole, it can be concluded that ICT may be used effectively
for a plethora of activities ranging from creation of entrepreneurial skills to
successful rural development. The use of ICT and Knowledge Management
in the context of rural development has taken a great start from the last one
decade and the time is not very far when it will serve as a light house for
agripreneurship and rural development in the entire world.
REFERENCES
Chandragowda, M.J (2010). Policy Framework for Reorienting Agricultural Extension
System in India, Paper presented in the NAARM-IFPRI Workshop on Redesigning
Agricultural Extension in India: Challenges and Opportunties”, August 20-21, 2010.
Dalberg. 2013. Impact of the Internet in Africa: Establishing Conditions for Success and
Catalysing Inclusive Growth in Ghana, Kenya, Nigeria and Senegal. Dalberg, New
York, USA. Available at: http://dalberg.com/documents/Dalberg_Impact_of_
Internet_Africa.pdf
Rahman, R. and Fong, J. 2016. Innovate for Agriculture: Young ICT Entrepreneurs
Overcoming Challenges and Transforming Agriculture. The Technical Centre for
Agricultural and Rural Cooperation (CTA), Wageningen, The Netherlands.
Sulaiman VR, Kalaivani NJ, Nimisha Mittal and Ramasundaram P (2011a), ICTs
andEmpowerment of Indian Rural Women What can we learn from on-going
initiatives?, CRISP Working Paper 2011-001. Available at:http://www.crispindia.org/
docs/CRISP%20Working%20PaperICTs%20and%20Empowerment %20of%2
Women.pdf
Sulaiman V R, Hall A, Kalaivani NJ, Kumuda Dorai and Reddy T S V (2011b), Necessary
but not sufficient: Information and communication technology and its role in putting
research into use. RIU Discussion Paper 16, June 2011. Available at:http://
68

www.researchintouse.com/resources/riu11discuss16info-comms.pdf
Woodard, J., Weinstock, J. and Lesher, N. 2014. Integrating Mobiles into Development
Projects. United
States Agency for International Development (USAID), Washington, United States. Available
at: http://www.usaid.gov/sites/default/files/documents/1861/M4DHandbook_
August_2014.
World Bank. 2015. Doing Business 2016: Measuring Regulatory Quality and Efficiency.
World Bank, Washington DC, UnitedStates. Available at: http://www.doingbusiness.
org/reports/globalreports/doing-business-2016
 69

Chapter
5
DEVELOPMENT OF EXPORT
ORIENTED ENTREPRENEURSHIP
THROUGH BASMATI RICE
Ritesh Sharma and Pramod Kumar Tomar

1. INTRODUCTION
Indian economy is based on agriculture where more than 60 percent
population depends on agriculture direct or indirectly. Total agricultural export
from India was Rs. 236402/- Crore and Basmati rice and non Basmati rice
export share was Rs. 27598/- Crore and Rs. 20336/- Crore, respectively,
during 2014-15. The size of the global food trade is about USD 650 billion
and India’s agricultural export is about USD 10 billion only (1.50% sharing).
India has one tenth of world’s arable land with diverse agro climatic zone
with more 50 major crops, one fifth of worlds irrigated land, 3rd largest
producer of agri. commodities. India is No. one producer of Tea, Mango,
Banana, Cashew, Cauliflower, Okra, Pulses, and Milk etc. India is largest
producer, consumer and exporter of spices also and in horticulture products,
India has certain competitive advantages. Therefore, India has more
opportunities to increase own agriculture export through development of
entrepreneurship in agriculture sector and also play a vital role to increase
the farmer income and target may come true for “Doubling the Farmer
Income by 2020”.
WTO regime provides great opportunity for exports and India’s
entrepreneur can avail more benefit from export of high value products like
Basmati rice. Our volume of Basmati export is increasing year by year and
crossed 4.0 Million MT. Presently Basmati rice got GI Tag and the
competition is not too much globally. Only Pakistan which has 14 districts
of Punjab is the competitor and the demand of Basmati is from all over the
70

world. Therefore, Indian farmers and young youth who develop their own
business in Basmati GI areas, they have great opportunity in this field.
2. THINGS TO KNOW FOR BECOMING AN EXPORTER
2.1 Type of exporters
 Merchant Exporter:
Merchant exporter does not have own manufacturing unit/
processing unit.
 Manufacture:
Procure and process raw material at his factory and exports finished
products
 Service Provider:
One who provides export service like health care, consultancy,
software, hotels etc.
In India, anyone can be registered as exporter; it is a very simple
procedure for registration with Directorate General of Foreign Trade
(DGFT) based on Import Export Code (IEC) issued by DGFT.
2.1.1 DGFT (Directorate General of Foreign Trade)
DGFT is an organization under ministry of commerce & industries,
first and foremost work is to formulate foreign trade policy and its
implementation. DGFT also organize training of entrepreneur through
“Niryat Bandhu Scheme” and runs various incentivize schemes for the
exporters also issues IEC (Import Export Code) which is PAN Based 10
digit code IEC is the basic requirement for commercial trade. For IEC
form ANF2 can be filled both offline and online at webpage of dgft.gov.in.
2.2 Starting export
For starting as an export company, you need to name your company
with logo and website. After issuing IEC you may become an exporter and
may export any goods but for agricultural export, the registration with
APEDA, Ministry of Commerce & Industries, Government. of India is
mandatory. APEDA is established by an Act of Parliament in 1986 having
head quarter at New Delhi and 5 Regional offices at Mumbai, Bangalore,
Hyderabad, Kolkata and Guwahati. The mandate of APEDA is promotion
of export oriented quality production; facilitate Market Access, development
of Infrastructure, market development and promotion and financial
 71

assistance to exporters. The registration with APEDA, which called RCMC

is also a very simple process. It is based on IEC, application can be done
online or offline for RCMC.
2.3 Data mining
Data mining is important to know the Size of world market of export
product, trend of market, competitors, tariff barriers, sanitary phytosanitary
issues for particular country and to get suitable buyer and country.
2.4 Buyer management
It is most important aspect in international trade and known about
below points.
 Identify buyer and procure order.
 Sign the contract with clear pricing, freight charges, payment terms
etc.
 Production and supply management
 Realization of payment.
 Delivery of goods and follow up.
2.5 INCO Terms
The Incoterms or International Commercial Terms are a series of
pre-defined commercial terms published by the International Chamber of
Commerce relating to international commercial law. You have to negotiate
a sale contract with buyer before any trade happen. There are some terms
likes FOB (Free on Board), CIF (Cost insurance & freight) etc. Inco terms
were published by international chamber of commerce in 1936 and from
time to time. They are widely accepted terms in domestic and international
trade. These terms defines task, responsibility, cost, risk including cost and
insurance. Inco terms significantly reduces misunderstanding among traders
hence minimize the litigation.
INCO TERMS EXAMPLE
Free on Board … (Named part of shipment)
72

2.6 Payment Terms

Payment is the base of any trade. Best scenario is your payment
before supply of goods. Ensure that your payment is safe as delay or default
payment can disturb your trade cycle, so make clear payment terms in sale
contract. Type of payment terms are described with risk factor as below:
E 100 Consignment
X . Payment will be made after goods being sold in import
P country
O . Open Account
R . Delivery first before payment
T
E . Collection
R . Delivery first before payment (through Bank)
R . Letter of credit
I . A guarantee for payment by Bank
S . Advance payment
K 0 Pay first before delivery

2.7 Status holder

Status holders are business leaders who have excelled in
international trade and have successfully contributed to country’s foreign
trade. Exporters have to achieve exporter performance during current and
previous two financial years. The exporter performance will be counted on
the basis of FOB value of exporter earnings free foreign exchange; Double
weightage for MSME, manufacturing units having ISI, BIS, one star exporter
house.
Category Export performance
One star export house US$ 3 million
Two star export house US$ 25 million
Three star export house US$ 100 million
Four star export house US$ 500 million
Five star export house US$ 2000 million
 73

2.7.1 Privileges of status holder

o SION norms may be fixed on priority within 60 days by the norms
committee.
o Exemption from furnishing of bank guarantee for schemes under
FTP, unless specified otherwise.
o Two star and above export house shall be permitted to establish
Export warehouse as per DOR guidelines
o Three star and above export house shall be entitled to get benefit
of Accredited Clients programme as per CBEC guidelines.
o Manufacturers who are also status holders (3 to 5 star) will be
enable to certify their manufactured goods as originating from India
with a view to quality for preferential trading under FTAS, PTAS
etc.
3. STATUS AND PROSPECTS OF BASMATI RICE EXPORT
Basmati rice is long grain aromatic rice grown from many centuries
in the specific geographical area of the Himalayan foot hills of Indian sub-
continent, blessed with extra-long slender grains that elongate at least twice
of their original size with a characteristics soft and fluffy texture upon
cooking, delicious taste, superior aroma and distinct flavour. Basmati owes
its origin to confined pockets of low land rice fields of North West India and
adjoining area of Pakistan because of its high photo-thermal sensitivity where
it has been existing as a specialised ecotype. It drives its literary meaning
from Dogri/Punjabi (Basana= aroma and Mati= More) a rice, rich in aroma.
The earliest mention of Basmati rice is available in the epic Heer and
Ranjha composed by Punjabi poet Varish Shah in 1766. The Basmati rice is
defined as
“ All aromatic rice are not Basmati but all Basmati rice are aromatic”
OR
“ Basmati is a small group of aromatic rice, traditionally grown in
certain geographic regions at foot hills of Himalaya”.
Basmati rice has delicious taste, aroma and distinct flavour. This
quality pulled to consumers and consumer’s number increase day by day in
whole universe. India has got GI certificate in February 15, 2016 for Basmati
rice. The Geographical Indication registration No. is 145. For Basmati rice
cultivation only two countries Pakistan and India has GI Certificate, Pakistan
74

has 14 districts only and India has 93 districts in GI area for Basmati rice
production. These 93 district belong to seven state; J&K, Himachal
Pradesh, Punjab, Haryana, Delhi, Uttarakhand and West Uttar Pradesh.
India is the leading exporter of the Basmati rice to global market. From
India, Basmati is exported to Saudi Arbia, UAE, European Union countries,

USA, Canada, UK, Germany, Australia, Austria, Russia, Singapure, Iran,

Kuwait, Behrain, Spain, Italy, France and Denmark. .
3.1 Characteristics of Basmati rice
Characteristics Standards
Minimum average pre cooked milled rice Length 6.60
Average precooked milled rice breadth (mm) < 2.00
Minimum L/B ratio of precooked milled rice 3.50
Minimum average cooked rice length (mm) 12.00
Minimum elongation ratio 1.70
Average volume expansion ratio >3.5
Aroma Present
Amylose content 20-25%
Alkali spreading value (ASV) 4.0-7.0
Minimum brown rice recovery 76%
 75

Minimum milled rice recovery 65%

Minimum head rice recovery 45%

3.2 Status and comparison of Export of Basmati and non Basmati

rice
India ranks first in rice export and second in production after China
(first producer). Basmati rice is growing only in India and Pakistan in whole
world. India produces more than 80% of total production of Basmati rice
and export in more than 145 countries in world. It is good luck of Indian
farmers that only two countries produce to Basmati rice and rest all are
consumers. Basmati rice gained per unit more foreign money compared to
non Basmati rice 136.71%, 126.40% and 149.45% more than non Basmati
rice during 2015-16, 2016-17 and 2017-18, respectively.
3.3 Comparison of Non Basmati rice and Basmati rice export quantity
& value
Year Non Basmati rice Basmati rice
Quantity Value Price Quantity Value Price
(Million (Lakh Rs) (per kg) (Million (Lakh Rs) (per kg)
MT) MT)
2015-16 6291109 1492874 23.73 4031168 2264584 56.18
2016-17 6672755 1592450 23.86 3984176 2152182 54.02

2017-18 8648488 2296782 26.56 4056758 2687017 66.24

4. Varieties of Basmati rice

Basmati rice from the Indian sub-continent is highly priced in the
International and domestic markets for its unique quality. The traditional
Basmati varieties are tall, prone to lodging, photoperiod and thermo sensitive
and low yielding. Now a number of Basmati varieties are available for
cultivation as a result of breeding programme initiated at various SAUs and
ICAR institutions. At present 30 varieties of Basmati rice have been
developed, released and notified for commercial cultivation (Table 1).
Table 1. Basmati rice varieties
S. No. Varieties Name of the institutions
1. Basmati 370 Rice Farm, Kala Shah Kaku (Now in Pakistan)
2. Type -3 (Dehraduni Basmati rice) Rice Research Station, Nagina, UP
3. Taraori Basmati (HBC -19 or Rice Research Stiation , (CCS-HAU), Kaul,
karnal Local) Haryana
76

4. Basmati 217 Punjab Agriculture University, Ludhiana,

Punjab
5. Ranbir basmati Shere-e-Kashmir University, Regional
Agriculture Station, R S Pura, Jammu
6. Basmati 386 Rice Research Station, Kapurthal, Punjab
Agricultural University, Ludhiana, Punjab
7. Punjab Basmati 1 Punjab Agricultural University, Ludhiana,
Punjab
8. Pusa Basmati -1 IARI, New Delhi
9. Kasturi Directorate of Rice Research Hyderabad, AP
10. Haryana Basmati Rice Research Station, (CCS-HAU), Kaul,
Haryana
11. Mahi Sugandha Rice Research Station, RAU, Baswara,
Rajsthan
12. Pusa Basmati 1121 IARI, New Delhi
13. Improved Pusa Basmati 1 IARI, New Delhi
14. Vallabh basmati 22 Sardar Vallabh Bhai Patel University of
Agriculture and Tech., Modipuram, Meerut,
15. Pusa Basmati 6 IARI, New Delhi
16. Punjab basmati 2 Punjab Agricultural University, Ludhiana,
Punjab
17. Basmati CSR 30 CSSRI, Karnal, Haryana
18. Malviya Basmati Dhan BHU, Varansi, UP
19. Pusa Basmati 1509 IARI, New Delhi
20. Vallabh basmati 21 SVPUAT, Modipuram, Meerut, UP
21. Vallabh basmati 23 SVPUAT, Modipuram, Meerut, UP
22. Vallabh basmati 24 SVPUAT, Modipuram, Meerut, UP
23. Basmati 564 SKUAST, Jammu
24. Pusa Basmati 1609 IARI,New Delhi
25. Pant Basmati 1 G B Pant University of Agriculture and
Technology, Pantnagar, U S Nagar,
Uttarakhand
26. Pant Basmati 2 GBPUA&T, U S Nagar, Uttarakhand
27. Punjab Basmati 3 PAU, Ludhiana, Punjab
28. Pusa Basmati 1637 IARI, New Delhi
 77

29. Pusa Basmati 1728 IARI, New Delhi

30. Pusa Basmati 1718 IARI, New Delhi

5. COMPARATIVE ECONOMICS OF CULTIVATION OF

BASMATI AND NON-BASMATI RICE
The detailed cost of cultivation of Basmati and Non Basmati rice is
given in Table 2.
Table 2. Economics of Basmati and Non-Basmati Rice Production
S. No. Particulars No/Qty. Basmati rice No/Qty. Non-asmati
rice
1 Nursery Preparation
A Seed 20Kg. 1500 30 kg 1500
B Fungicide 100 gr. 60 100 gr. 60
C N:P:K 15Kg 300 15Kg 300
D Urea 10 Kg 80 10 Kg 80
E Zinc 2Kg 110 2Kg 110
F Other(preparation of 1000 1000
nursery area)
2 Land Preparation
A Land rent 32000 32000
B Ploughing 2 1600 1600
C 2 1600 1600
D Puddling 1 2400 2400
E N:P:K 150Kg 3000 3000
F Bunding - 600 600
3 Transplanting 1Time 8000 6250
4 Fertilizer
A Urea(Twice ) 150Kg 1200 250Kg 2000
B Zinc 20Kg 1100 20Kg 1100
C Zyme 20Kg 800 20Kg 800
5 Pesticide
A Weedicide charges 2000 2000
78

B Insecticides 2820 2820

C Fungicides 2140 600
D Spray charges 10 3000 10 2000
E Field cleaning 10 3000 5 1500
6 Harvesting & Threshing - 8000 6000
7 Winnowing & Packing - 3600 3600
8 Water Charge 6 Month 6000 6 Month 4000
9 Transport Charge 45 Qtls 2250 60 Qtls 3000
10 Total Cost 88160 79920
11 Cost of production 1959 1332
(Rs./Qtl)
12 Total Income 45 Qtls 135000 60 Qtls 93000
@3000/- @1550/-
13 Benefit 46840 13080

14 Benefit per qtl 1040 218

REFERENCES
Bhatt, B.P. (Edited Book), 2018. Doubling Farmers Income through Sustainable and
Harmonious Agriculture. Jaya Publishing House, Delhi, India.
Sharma, Jag Paul (Edited Book), 2017. Organic Crop Production, Principals and Practices.
Volume II- Crop Specific Organic Production Package, Kalyani Pablication, New
Delhi, India.
Sharma, Ritesh. 2014. ‘Niryat yogya Basmati Dhan Utpadan ki Vegyanic Taknik” (Hindi).
Basmati Export development Foundation (APEDA), Modipuram, Meerut, India.
Surekha,K., Lakshmi, V. Jhansi., Kumar, R. Mahender., Rao, K.V and Viraktamath. 2011.
‘Organic Rice Farming, Status and Research Experiences’. Directorate of Rice
Research, Hyderabad, India.
 79

Chapter
6
PROSPECTS OF SEED
ENTREPRENEURSHIP IN INDIA: AN
OVERVIEW
Arun Kumar MB and Sherry Rachel Jacob

1. INTRODUCTION
Agricultural entrepreneurship is a dynamic sector which flourished
with the liberalization movement, in both developed and developing countries.
India too has gained significantly from the entrepreneurship opportunities
created up by the open global market, in the past few decades. With more
than 60% of the population dependent on agriculture sector, the emergence
of agricultural entrepreneurs and related ventures were inevitable and our
country currently has a commendable number of such enterprises. Within
the agricultural sector, seed industry serves as a major catalyst for boosting
agricultural production and productivity. The Indian seed sector is today
valued at around Rs 20, 000 crores, with significant contribution from both
public and private organizations. The major public sector organizations that
are involved are the National Seed Corporation, State Farms Corporation
of India and the 13 State Seed Corporations (SSC). They mainly deal with
high yielding varieties of food crops that define the national production
targets. The major players in the private sector are the Indian subsidiaries
of 15 multinational companies, but the largest number belongs to unregistered
small firms that function locally. The fact that both public and private sectors
have prioritized and established themselves in separate components of the
seed industry (Public sector gives thrust on high volume crops whereas, the
private industry dominates the low-volume, high-value seed sector), has
also facilitated a no-conflict modus-operandi in this industry, due to which
there is a positive entrepreneurial environment.
80

2. SCOPE OF SEED ENTREPRENEURSHIP IN THE CURRENT

INDIAN SCENARIO
Though the seed network in India is comparatively well established
and strengthened by reputed institutions that provide scientific support, there
has always been a persistent gap in the availability of quality seeds in all
major crops. Since seed is the key input that triggers enhancement of
agricultural productivity, it is imperative to focus and promote the seed
scenario, in order to address the existing concern of feeding the ever
increasing population of our country. A primary factor that holds down our
crop production potential is the very low seed replacement rate (SRR) that
is practiced in all crops, across all states. Though there have been consistent
efforts to enhance the SRR in major crops, through the national seed network,
by making available quality seed material, it has become quite evident that
a single window approach is not sufficient to tackle this chronic problem
that is overshadowing our agricultural progress. The small and marginal
farming section that occupies the major share of our agricultural landscape
has not been able to avail most of the facilities or resources that have been
offered as an attempt to boost our agricultural productivity. Either the
information dissemination had failed, or quality seeds have not reached all
corners of our country or many times, the price was not affordable to the
small or marginal farmer. But it is also a known fact that the farmers are
willing to invest in quality seed material, if they are assured of proportionate
returns. It is because of this reason that these small scale farmers have
been victims of spurious trade and dealers of spurious seeds are now a
common occurrence in local markets. Such negative experiences inhibit
many in the farming community from adopting new varieties and seed
materials and they safely opt for the farm saved seeds, thereby, hampering
the SRR and subsequently, our crop productivity.
This major gap in seed availability is hence, the ideal opportunity
for entry and establishment of seed entrepreneurs. The entrepreneurship
need not be restricted to seed production per se, since seed sector involves
diverse components with equal investment strengths.
3. POTENTIAL ENTREPRENEURIAL AREAS WITHIN SEED
SECTOR
Seed production of promising hybrids/ parental lines/ varieties:
The hybrid seed market is an ever-expanding market in India,
especially in the case of horticultural crops. The vegetable seed market is
valued at Rs 4000 crore and is reported to grow at the rate of five per cent.
 81

Hence, it offers a most viable arena for entrepreneurial ventures. The diverse
requirement of varieties in every locality helps in accommodating any level
of competition.
Seed processing:
The post harvest handling of seed material is the most crucial stage
for maintenance of seed quality. It requires knowledge, skill and suitable
infrastructure, which is specific to the geographic location and the crops
that are to be processed. This step is also important in the context of value
addition. A proper scientific support and liaison with research organizations
will help in incorporating technologies for enhancing the quality of the seeds
and thereby fetching premium price in the market. For example, by including
techniques like seed coating, seed priming, polymer film coating etc., the
entrepreneur can create a brand value for the product and thereby occupy
a niche market space.
Seed storage cum marketing hub:
Our tropical climatic conditions do not permit safe storage of seeds
under ambient conditions and it is important to have regulated temperature
and humidity conditions for storing the seed material. Such facilities are
currently inaccessible for the small and marginal farmers, whose produce
is channelized in a very fragmented manner, in the market. A regional seed
storage facility, which is linked to the local market, is the need of the hour.
It can serve the two-way- purpose of storing the produce of contract seed
production ventures in that region and also, serve as a safe storage for
processed products that are mobilized from different sources. In this era of
cloud based technologies, such seed storage enterprises can adopt strategies,
maybe on a smaller scale, from the likes of Amazon, Flipkart etc and convert
the storage facility into a warehousing venture that can deliver seeds to
farmers’ door-step, based on demands placed over phone.
Seed information hub:
All seed related activities require an efficient knowledge-support
system which is not easily available to the farmers in every corner of our
country. Timely dissemination of information has been mostly hindered due
to the insufficient number of extension personnel who can effectively convey
technical information to farmers in each locality or due to lack of availability
of proper scientific information. All these drawbacks can be compensated
by using latest technologies where communication in any regional language
can be done from a centralized location. The farmers may just have to give
a missed phone call and they can obtain the required information over a
82

returned phone call. A tie up with the private telephone service providers is
essential in this case.
Input delivery enterprise:
As in the case of seed storage warehouse, a more extensive input
delivery service can also be a promising venture. It can include seeds,
pesticides, minor farm machinery, packaging material etc. Many of such
essential items are generally not available in every local market and hence
small and marginal farmers compromise by using low-grade inputs. By
utilizing cloud based technologies, the entrepreneurs can establish and
operate from any place and yet, ensure a wide market, by accepting demands
made online or through phone calls.
Community seed banks:
This venture is more of an ethical responsibility, rather than a
commercial enterprise. With the entry of high yielding varieties, there is a
sharp decline in the crop diversity and varietal diversity in every agro-
ecological zone. Local landraces, traditional varieties and farmers varieties
are no longer available in the fields. These resources are very important in
the context of breeding for pest and disease resilience. Several minor
crops like minor millets, pseudo-cereals and unique indigenous legumes
which are highly nutritious have vanished from fields and from our cuisine.
A targeted effort need to be made to sensitize farmers in re-introducing
these crops in their farms and such community seed banks will be the ideal
hub for supply of seeds and maintenance of seed stocks. Since only a
nominal charge can be taken from farmers, there need to be a tie-up with a
proper funding source. Since firms like ITC, Infosys etc have forayed into
rural ventures; there is a high probability of finding potential collaborators.
By incorporating an organic production system, there will be an added
possibility of an export tie-up.
4. WHO CAN BE THE SEED ENTREPRENEUR?
In India, the agricultural universities produce a large number of
professionally qualified graduates, who find it difficult to get employed in
their skilled areas. Only a minor percentage of this huge manpower pursues
higher education or gets absorbed by the state agricultural department. The
rest of these trained human resources are currently spread out in diverse
career areas, where their knowledge and skills are mostly underutilized.
These agricultural graduates are the most potential candidates for such
entrepreneurial ventures. They can form groups where they can involve
people with experience in specific seed sector areas by virtue of their
 83

temporary work experience in private firms. Moreover, this is the era of

business startups and the policy environment too is favorable. If the individual
has the right attitude to face the challenge and also form a team that has a
good knowledge base, the entrepreneurial venture would surely be
successful. Once the entrepreneurial management team is set up, then
both skilled and unskilled manpower will be required for its execution.
5. BASIC REQUIREMENTS FOR INITIATING A SEED
ENTREPRENEURIAL VENTURE
1. Field survey: The success of entrepreneurial ventures depends
on the decision making ability of the team, which should be based
on their knowledge and experience. Though seed sector is ubiquitous
in its presence, each locality zone has a specific requirement that is
primarily based on the agro-climatic conditions and cultivator’s
subjective choices. Therefore, the first step in any seed venture
should be an elaborate field survey, which should focus on collecting
local information about-
a. Cultivar preferences in each crop
b. Acreage under each crop/variety
c. Existing SRR for crops
d. Demand- supply dynamics of quality seed material and their
local sources
e. Areas where there is need for scientific intervention
f. Financial status of the farmers
g. Marketing information
Based on this survey, a demand forecasting strategy should be
developed because for a successful seed enterprise, the output
should be in sync with the demand for the product/service
2. Manpower: As discussed above, there is no dearth of professionally
trained manpower, in the agricultural sector. A strong team with
individuals having knowledge/expertise or traditional experience
(in both skilled and unskilled components) is essential for the success
of the venture.
3. Networking with institutions: The success of any agricultural
enterprise will depend on the extent of scientific and precision
technologies that were employed by the enterprise, as compared
84

to the already existing ones. Such scientific intervention cannot be

achieved in isolation. Efforts should be made to create a liaison
with agricultural research organizations, state agricultural
universities and Krishi Vigyan Kendras and their field-tested
technologies that are relevant for the enterprise should be adopted
and implemented. For eg., a seed processing unit can adopt a seed
film coating technique that guarantees better field emergence, which
has been validated by a public sector organization, since there won’t
be any patent issues involved.
4. Financial investment: This is the most crucial component in
initiating an enterprise. But due to the positive policy environment,
currently funding is available from several sources like the
NABARD, Ministry of Small Scale Industries, National
Horticultural Mission and National Food Security Mission. Several
commercial banks are also providing lucrative loan schemes for
such investment ventures.
5. Marketing strategy: Based on the information gathered during
the survey, a well laid-out plan should be developed for marketing,
if the enterprise involves production of seed for sale or of any seed
related services. The success of Gujarat’s Dairy Co-operative and
Maharshtra’s Sugar Co-operative lay in its marketing strength.
Cloud-based technologies, internet and the extensive mobile phone
connectivity should be fully exploited for the best marketing
coverage, even from remote locations.
There are several upcoming seed entrepreneurs who have even
made entry in the export market. The risks and challenges of any business
enterprise, exists in this case as well. But one should always remember
that ‘Nothing can withstand the power of the human will’.
REFERENCES
Tomar, B.S., Kalyanrao and Kumar, V. (2011). Seed production: An entrepreneurial venture.
Indian Farming 61(4): 4-9.
 85

MUSHROOM PRODUCTION FOR

SUCCESSFUL ENTERPRISE
DEVELOPMENT
Chandra Bhanu and Veena Yadav

1. INTRODUCTION
Mushrooms have been recognized as valuable health food and
contain almost all essential components of a balanced diet. They are rich in
highly digestible lysine rich protein (12-37% on dry wt. basis), vitamins and
minerals, dietary fibers, lacking fat and low in carbohydrates (low calorie
food). The mushroom protein contains almost all essential amino acids in
balanced proportions as denoted in FAO reference proteins (Chaube,1995).
Mushrooms are rich in vitamin B (folic acid, thiamine, riboflavin, niacin,
biotin, pantothenic acid etc.), C, D and K. Their alkaline nature and presence
of dietary fibers protect from digestive ailments and strengthening the human
immune system. Some mushroom species contain complex polysaccharides
(β-1,6 glucan etc.) which provide anti-tumor and immune-modulating
properties. Mushrooms are also used for several medicinal purposes right
from tonic food to anti-cancerous and anti-aids medicines (Bhanu et al.,
2001).
Mushrooms are very fit food supplement for resource poor peoples
as a high protein food and also for rich peoples as a low calorie, cholesterol
free food. The incorporation of mushrooms in the diet will be very helpful in
overcoming protein malnutrition in the developing countries like India, where
nutritional security is still a big challenge particularly among small farmers
and other resource poor peoples. As the increasing population imposes
more and more pressure on pulses, milk, fishery and meat sectors for fulfilling
its protein requirements, the mushrooms have very great potential to bridge
86

the protein gap in Indian diet. This high protein production potential of
mushrooms lies in the fact that, by utilizing vertical space, one can produce
100 times more protein in the form of mushrooms than the conventional
agriculture or animal husbandry (Singh, 2011).
2. NATIONAL AND INTERNATIONAL SCENARIO OF
MUSHROOM PRODUCTION
The world production of mushrooms was 3.41 million metric tons
in 2007 and China being the highest producer accounting 46% (1.57 million
metric tons) of total world mushroom production. Other leading countries
were USA, Netherlands, Poland, Spain, France, Italy, Ireland, Canada, UK
and Japan. The major mushroom species include Agaricus spp., the button
mushroom (31.8%), Lentinula (25.4%), Pleurotus spp., the Dhingri
mushroom (14.2%), Auricularia spp. (7.9%), Flammulina sp. (4.6%) and
Volvariella spp., the straw mushroom (3.0%). A India which was producing
about 40,000 metric tons of mushrooms in 1996-97 is now showing a great
jump with more than 1 lakh metric tons mushroom production per year
(Wakchaure, 2011; Tewari and Sharma, 2010). However, the majority of
mushroom production in India is contributed by the export oriented industrial
scale units. These units perform forced cultivation mainly of white button
mushroom with temperature and humidity control at very high production
cost. Only three species Agaricus spp. (100683 Metric tons), Pleurotus
spp. (6399 Metric tons) and Milky mushroom, Calocybe indica (920 Metric
tons) are grown at commercial scale in the country. There is tremendous
scope for boosting the mushroom production in the country by involving
marginal and small farmers with location specific mushroom species and
production technologies on the line of China. Looking for the diverse
Agroclimatic conditions in the country, there is tremendous scope for
increasing mushroom production by diversifying mushroom species especially
the specialty mushrooms as prevalent in China.
Advantages of mushroom production (Mycoculture)

Food, nutrition and health security Environmental security (recycling of

(production of high protein medicinal lignocellulosic agro-industrial wastes in natural
food per unit area, time and energy) fashion and saving of water energy and other
resources in food production)

Livelihood security (through earning of

extra income and employment
generation to farmers)

Fig.1. Advantages of mushroom production (Mycoculture)

 87

3. MUSHROOM PRODUCTION SYSTEMS IN INDIA

The mycoculture history in India is about five decades old. The
mushroom cultivation systems in the country are summarizes as under:
3.1. Marginal Grower’s cropping system
The mushroom cultivation is strictly a seasonal activity and farmers
are taking 1-3 crops per season as per the availability of desired temperatures.
Locally available agrowastes and other raw materials are used as substrate.
Cropping rooms are made-up of local tree/grass materials like bamboo,
sugarcane leaves and rice straw etc. The shelves or racks are constructed
using bamboo, plywood, twigs, sarkanda etc. Mainly button mushroom is
grown which is followed by dhingri, milky and paddy straw mushrooms at
some locations. Long method of composting is common with 14-16kg
mushroom yield per quintal of compost in 8-10 weeks of cropping in case
of button mushroom. Seed is purchased from commercial spawn production
units. The produce is sold in surrounding markets and nearby cities. Small
cropping rooms (40’x20’x12-14’ to 30’x17’x10-12’) with 3-4 tiers of racks
and 5-6 tons of compost are generally used. Casing is prepared using FYM
and local soil with formaldehyde treatment. The yield potential of this system
is very low and farmers are growing mushroom as a source of additional
income along with their usual farming. The cleanliness and hygiene are not
maintained properly, hence the attack of diseases and pests are common.
3.2 Small Grower’s cropping system
A large number of mushroom growers are taking seasonal crops
of mushroom by converting their older buildings into mushroom crop rooms
or inside specially constructed crop rooms (40’x20’x12’) for the purpose.
Depending upon prevailing temperatures, 1-3 crops are taken per season.
Long method of composting is generally followed or compost is purchased
from big industrial units. Wooden trays or metallic racks were earlier
common, but are being replaced now by polythene bags. Seed is purchased
from commercial spawn production units. An average yield of 16-18 kg per
quintal compost is generally obtained. The produce is generally sold in local
markets of big cities. The cleanliness and hygiene are better than the
marginal growers hence; better yield is obtained in this case.
3.3 Big Grower’s or Industrial scale cropping system
In this case mushroom (mainly button mushroom) is grown inside
controlled crop rooms with temperature and humidity controls. The size of
crop room varies from 35’x35’x12’ to 83’x17’x12’. Compost is prepared in
88

bulk pasteurization tunnels with short method. Metallic wire racks with 4-5
tiers are used for polythene cropping bags. Around 20 tons of compost is
accommodated in each crop room. The yield varies from 18-20kg per quintal
of compost within a harvesting period of 40-42 days. This system is
harvesting maximum yield potential of mushroom with high degree of
cleanliness and hygiene and very less pest and disease attack. Big growers
are mainly export oriented units with their own canning or processing and
spawn production units.
The marginal and small growing systems have great potential for
diversification of farming system through increased emphasis on specialty
mushrooms (species other than button mushroom) along with button
mushroom. Since button mushroom cultivation is fit only to Northern parts
of the country during winter season, the inclusion of specialty mushrooms
(with high bioconversion efficiencies: 100-150%) will give a round year
production system for entire agro-ecological zones of the country. The
location specific technological interventions for growing specialty
mushrooms will be very helpful in increasing the income of farmers,
generating round the year employment and finally livelihood security which
are main concerns with resource poor small and marginal farmers. The
plenty of labour force with these systems can be utilized for mycoculture at
a cottage level along with their traditional farming systems.
4. THE POTENTIAL OF MUSHROOM CULTIVATION IN INDIA
India has vast potential for mushroom production due to abundant
availability of lignocellulosic agrowastes, cheaper manpower and input
resources and diversified agroclimatic conditions which is flexible for growing
a variety of mushroom species. The potential of mushrooms in the country
can be emphasized under following heads:
4.1 Recycling of agro-wastes
India produces about 600 million tons of lignocellulosic agricultural
wastes annually and majority of it is either decomposes naturally or used
for fuel wood for cooking or burnt in situ (Table1). These activities also
pose the problems of environmental pollution. On the utilization of only 1%
of these agro-industrial-wastes India can produce about 3.0 million tons of
mushrooms annually which will be a major share to the total world production
of mushrooms. An additional 15 million tons of compost will also be produced
which can complement the crop production through improved manuring.
 89

Table 1: The agro-wastes production in India, their major uses and potential for
mushroom cultivation
Crop Grain- Annual Major uses Potential as substrate for
straw production mushroom species
ratio (million
tons)
Rice 1:1.5 85 Animal feed, Button, Dhingri, paddy
thatching straw, milky, wood’s ear
mushrooms
Wheat 1:1.5 130 Animal feed Button, Dhingri, wood’s
ear, milky, reishi
mushrooms
Maize 1:1.0 30 Animal feed, Dhingri, wood’s ear
thatching mushrooms
Pulses 1:1.0 13.14 Animal feed, Dhingri, wood’s ear
thatching, fuel wood mushrooms
Sugarcane 1:0.2 186 Fuel wood Button, Dhingri, wood’s
(bagasse) ear mushrooms
Oil seeds 1:2.0 25.58 Fuel wood, thatching Dhingri, wood’s ear
mushrooms
Other agrowastes include millets straw, cotton waste, wastes of coconut and jute, tea
wastes, saw dust, forest woods and other agro-industrial wastes which are suitable for
production of various mushroom species
(From Bhanu, 2000; Tarafdar and Yadav, 2009; Tewari and Sharma, 2010)

4.2 Use of vertical space for cropping and suitability for landless
and marginal farmers
Mushroom cultivation is highly economical on land, area and time.
It does not need arable land, since it is not cultivated in soil and hence non
productive lands can be efficiently utilized for its cropping. Cultivation of
mushrooms is done in tiers, utilizing vertical space, thus it is a fit component
for small and marginal systems and particularly in hilly, tribal, plateau and
other unproductive areas. The production per unit area of mushrooms is
many times higher than the field crops. Due to shorter cropping duration of
most of mushroom species, it highly productive per unit time and economical
in terms of water, labour and energy requirements. Obviously, this enterprise
is an ideal activity for landless, marginal and small systems.
4.3 As an economic activity for livelihood security
Mushroom production is an economically viable enterprise in the
90

farming system. It can be adopted by landless, marginal, small, medium and

big farmers by investing few thousands to lakhs or even crores of rupees
depending upon their investing capacity. Besides high profit, mushroom
production starts giving returns within very short time. Marginal farmers of
the mountain region, tribals of the forestlands, and even landless labourers
may also take up mushroom production at a small scale to earn for their
livelihood and nutritious food for their families. Mushroom cultivation is
labour intensive and generates employment. Various activities of this
enterprise like spawn production, crop production, processing and marketing
can be carried out by women-folk and the farmers may involve their family
members to augment their income. Thus, mushroom production is a highly
profitable
4.4 As an eco-friendly activity
Mushroom cultivation is basically a recycling process which produces
highly nutritious food from agricultural, horticultural, forest, animal residues/
wastes and other agro-industrial wastes. In addition, the spent substrate
left over after the crop harvest is also invaluable, since it ameliorate the
exhausted soil by improving its texture, water holding capacity and nutrient
status. The spent compost of button mushroom is comparable to FYM in
terms of nutrient. It can be utilized for reclamation of soil, as a good manure
in horticultural crops, bioremediation of contaminated soil and water,
management of some diseases of crops, regrowing of mushrooms, animal
feed, biogas production and other uses (Ahlawat, 2011). As per one estimate,
5% and 25% spent compost of button mushroom by volume, are sufficient
to meet the P, K, and N requirement of crops respectively (Verma, 2007).
Hence the spent mushroom substrate can potentially replace the inorganic
fertilizers with organic one and promote the organic agriculture.
4.5 Round-the-year cropping
In contrast to field crops, mushroom production can be done round
the year, since they do not require sunlight and are cultivated indoors under
controlled conditions and not exposed to climatic variations outdoors. There
are different species of mushrooms fitted to different climatic conditions of
various locations of India and can be scheduled in production module in
year-round-fashion (Table 2) without investing on climate control facilities.
Hence, this enterprise can provide year-round employment to farmers.
 91

Table 2: Suitability of various mushroom species to different temperature range

S.No. Mushroom species Common names Temperature range (0C)
For spawn For
run cropping
1. Agaricus bisporus Button mushroom 23-25 14-16
2. A. bitorquis Summer white button mushroom 28-30 25
3. Pleurotus spp. Dhingri mushroom 25-30 22-26
4. Calocybe indica Milky mushroom 25-30 30-35
5. Volvariella spp. Paddy straw mushroom 32-34 28-32
6. Lentinula edodes Shiitake mushroom 22-28 12-20
7. Auracularia spp. Wood ear mushroom 20-30 20-30

4.6. Mushroom cropping vs. natural calamities

Most of agricultural crops are prone to the destruction caused by
various natural calamities like heavy precipitation, drought, cold, floods etc.
leading to medium to complete losses of farmer’s livelihood depending upon
the intensity. Mushrooms being the indoor and short duration crop have an
advantage in such situations also, either it escapes such damage or even if
it is damaged, a fresh mushroom crop as an emergency source of food and
income can be re-started within a short time.
5. MUSHROOM PRODUCTION MODULES
Mushroom cultivation involves a number of operations. While, some
big growers undertake all the required operations, others are involved in
only one operation or one step of the entire production cycle. Some culture
collection units provide culture only, spawn (seed) production units involved
only in mass production of spawn, and some units produce compost
(substrate) only. Some of the prevalent and possible modules are may be as
follows:
1. Culture producers Spawn producers Compost/substrate producers
Crop growers mushroom sellers
2. Culture and spawn units composting, growing and marketing units
3. Spawn producers compost producers growing and marketing

4. Spawn and substrate producers individual/co-operative grower and seller

92

Further each of above activities of mushroom production has the

full time employment and income generation potential (Fig.2).

Mycoculture activities as separate enterprise

Culture production units Mushroom marketing units

Spawn production units Mushroom growing units

Compost/substrate producers

Fig.2. Mycoculture activities as separate enterprise

5.1 Mushroom production systems for India

In India the possible agri-systems which include mushroom
production may be the followings:
1. Agri-mycoculture system: involves field crops+ mushroom
production (for most of farmers)
2. Agri-horti-mycoculture system: involves field crops+ fruit crops+
mushroom production (for most of farmers)
3. Silvi-mycoculture system: involves forest crops+ mushroom
production (for tribal areas)
4. Agri-horti-silvi-mycoculture system: involves field crops+ fruit
crops+ forest crop+mushroom production (for technically skilled
farmers having agri-horti-silviculture and organic production system)
5. Agri-horti-silvi-myco-vermiculture system: involves field
crops+ fruit crops+ forest crop+mushrooms+vermicompost
production (for organic farmers)
6. COST-BENEFIT STATUS OF DIFFERENT MUSHROOMS
Mushroom production is a profitable agricultural enterprise being
indoor crop, it does not require arable land. The cost of production and net
gain in the production of various mushroom species is given in Table 3.
 93

Table 3: Cost benefit status of different mushrooms

S.No. Mushroom species Yield Cost of Market Net gain
production rate (Rs./kg) (Rs./kg)
(Rs./kg)
1. Agaricus bisporus/ 15-16% of 28-35 50-60 22-35
bitorquis Button compost wt.
mushroom
2. Pleurotus spp. Dhingri 50-60% of 20-25 35-45 15-20
mushroom substrate wt.
3. Calocybe indica 40-50% of 22-28 40-50 18-22
Milky mushroom substrate wt.
4. Lentinula edodes 15-20% of 25-30 60-80 35-50
Shiitake mushroom substrate wt.

7. PRODUCTION TECHNOLOGY OF MAJOR MUSHROOM

SPECIES
The production technology of many mushroom species is undergoing
dynamic changes and varies slightly from region to region depending upon
the availability of various resources and cultivation technologies. The major
events in the cultivation of some common mushrooms are given in flow
diagrams as below:
Production of button mushroom

Substrates (wheat straw)+supplements (fertilizers and others)

Composting
20-22 days
Spawning (mixing of seeds) and spawn run

12-15 days Casing

12-14 days Pin head initiation

3-4 days
Harvesting
94

Production of Oyster (dhingri) mushroom mushroom

Substrates (wheat/paddy straw)

Dip substrate in 100 lit. water+7g Bavistin+100ml formalin for 18-20 hrs.

Drain excess water for 4-5 hrs.

Spawning @2% , filling in polybags and spawn run for 15-20 days

Remove polybags

Harvesting after 6-7 days

Production of milky mushroom

Substrates (wheat straw)

Dip substrate in 100 lit. water+7g Bavistin+100ml formalin for 18-20 hrs.

Drain excess water for 4-5 hrs. or pasteurize untreated wet straw

Spawning @4% , filling in polybags and spawn run for 12-14 days

Casing (4cm thick)

Harvesting after 10-12 days

In view of the challenges faced by Indian farmers in general and

small/marginal, mountain and tribal farmers in particular, and considering
the advantages of mushroom production for food, nutrition, health, economic,
livelihood and environment security, it can be safely concluded that mushroom
based composite integrated farming system might be an ideal enterprise. It
will prove a highly sustainable in a few years as and when full advantages
 95

of mushroom based organic recycling with multi-crop, multi-enterprise, and

eco-farming are realized and the soil productivity, rural economy as well as
employment and health status are restored. In fact, this type of integrated
farming systems, based on eco-regional planning needs to be popularized
as early as possible.
REFERENCES
Ahlawat, O.P. (2011). Recycling of spent mushroom compost. In: Mushrooms: Cultivation,
Marketing and Consumption (Eds. Manjit Singh; Bhuvnesh Vijay; Shwet Kamal
and Wakchaure, G.C.). Directorate of Mushroom Research, Solan, India.pp:189-
196.
Bhanu, C.; Kushwaha, K.P.S. and Singh, R.P. (2001). Medicinal values of mushroom.
Intensive Agriculture. XXXIX (3-4): 9-11.
Chang, S.T. (1999). World production of cultivated edible and medicinal mushrooms in
1997 with emphasis on Lentinula edodes (Berk) Sing. In China. International J.
Med. Mush., 1(4):291-300.
Chang, S.T. and Hayes, W.A. (1978). The Biology and cultivation of edible mushrooms.
Academic Press, New York.
Chaube, H. S. (1995). Nutritional and medicinal values of mushrooms. In: Mushroom
Production Technologies (Eds. R.P. Singh and H.S. Chaube). G.B. Pant University
of Agric. and Technology, Pantnagar, India. pp: 7-9.
Singh, M. (2011). Mushroom Production: An Agribusiness Activity. In: Mushrooms:
Cultivation, Marketing and Consumption (Eds. Manjit Singh; Bhuvnesh Vijay;
Shwet Kamal and Wakchaure, G.C.). Directorate of Mushroom Research, Solan,
India.pp:1-10.
Singh, R.P. and Chaube, H.S. (1995). Mushroom Production Technologies. G.B. Pant
University of Agric. and Technology, Pantnagar, India.104p.
Tarafdar, J.C. and Yadav, B.K. (2009). Residue management and composting. In: Organic
agriculture (Eds. J.C. Tarafdar; K.P. Tripathi and M. Kumar). Scientific Publisher,
Jodhpur, India.Pp-52-71.
Tewari, R.P. and Sharma, V.P. (2010). Mushroom Production: Agrowastes Utilization and
Creating Employment. In: Recent Initiatives in Horticulture (Eds. K.L. Chadha;
A.K. Singh and V.B. Patel). Westville Publishing House, New Delhi. pp-297-305.
Verma, R.N. (2007). Mushroom based eco-farming –a road map to sustainable agriculture
and rural prosperity in India. In: Mushroom biology and Biotechnology (Eds. R.D.
Rai, S.K. Singh, M.C. Yadav and R.P. Tewari). Mushroom Society of India, DMR,
Solan, India. pp-367-373.
Wakchaure, G.C. (2011). Production and marketing of mushrooms: Global and National
Scenario. In: Mushrooms: Cultivation, Marketing and Consumption (Eds. Manjit
Singh; Bhuvnesh Vijay; Shwet Kamal and Wakchaure, G.C.). Directorate of
Mushroom Research, Solan, India.pp:15-22.
96
 97

Chapter
8
ENTREPRENEURSHIP
DEVELOPMENT THROUGH
PROTECTED HORTICULTURE
Poonam Kashyap, Kiran Bhagat, Sanjay Kumar Singh, Deepa Samant,
Vijay Singh Meena , A. S. Panwar and A. K. Prusty

1. INTRODUCTION
The horticulture has gained importance in recent years as a
significant component of agriculture in India. It is distinguished from
agriculture by scale of production, specialization, and commercialization.
Horticulture sector which includes a wide variety of crops such as fruits,
vegetables, spices, plantation crops, floriculture, medicinal and aromatic
plants, cashew etc. is at present, recognised as an important sector for
potential diversification and value addition in agriculture. The new momentum
towards the development of the horticulture, particularly for growing fruits
and vegetables is getting upcoming demand of the demand and supply chain
in Indian market. Horticulture is a mother for many axillary industries like
canning industries and processing industries etc. Several agro industries,
based on horticultural products are being established there by solving the
unemployment problem to some extent, for example-rubber, coir (Coconut)
and sago (Tapioca) industries. It has been recognised that growing horticulture
crops is now an ideal option to improve livelihood security, enhance
employment generation, accomplish income and food security, and increase
income through value addition.
In the present situation, farmers are required to develop themselves
as entrepreneurs for deriving greater benefits from their agriculture.
Horticulture sector, thus, provides an immense scope in improving the present
situation of unemployment. The marketed surplus will remains small, keeping
98

in view the holdings acquired by the farmers in the state. Small farmers
having small surplus, appeared to be reluctant in marketing their produce,
as the net returns, they could attain would not cover even the cost of
marketing. The new generation of educated farmers and unemployed rural
youth has an opportunity to become entrepreneur and adopt horticulture as
a business enterprise. A farmer does not become an entrepreneur only by
adopting new agricultural technology but he becomes an entrepreneur only
when he comes to be an operator of farm business. The marketing cost of
fruits and vegetables is almost 50% of the total cost of production which
tends to be increased further with more wastage and loss of produce.
‘Assembling’ is a marketing function that can solve this problem in
horticultural marketing, but we need entrepreneurs who can manage and
save the resources for themselves and for the country. Infrastructure like
roads and markets are building in a phased manner and will surely
complement the horticultural marketing. Wastage of produce on farmers’
fields should be minimized for promoting horticulture in becoming an important
source of gainful employment. There is a long term need to remove the
distortions in the present supply chain and create better integration between
different links of the supply chain. Entrepreneurship development among
farmers is an important way of achieving that integration for bringing net
gain to producers, consumers and to the nation. E n t r e p r e n e u r s h i p
contributes to development of a country in several ways, viz., assembling
and harnessing the various inputs, bearing the risks, innovating and imitating
the techniques of production to reduce the cost and increase its quality and
quantity, expanding the horizons of the market and co-ordinating and
managing the manufacturing unit at various levels. During the Eleventh
Plan period, 16.7 lakh ha of land was brought under horticultural crops in
India (Boruah et al., 2015). Production of vegetables and flowers is
significantly influenced by the seasonality and weather conditions. The
extents of abundance and deficiency in production cause considerable
fluctuations in the prices and quality of vegetables and flowers. Vegetable
production, at present, is also characterized by a strong dependence on
chemical plant protection with its all-inherent environmental and health
hazards, both, for the grower and the consumer. Striking a balance between
all-season availability of high-quality vegetables with minimum environmental
impact, and still to remain economically competitive in this time of
globalization, is a major challenge for the modern technology of crop
production.
The crop productivity is influenced by the genetic characteristics
of the cultivar, growing environment and management practices. Under
 99

open field cultivation, while the other factors could be taken care of, it is
not possible to effect control on the environment around the plant. The
plant’s environment can be specified by five basic factors, namely, light,
temperature, humidity, carbon dioxide and nutrients. The main purpose of
protected cultivation is to create a favourable environment for the sustained
growth of plant so as to realize its maximum potential even in adverse
climatic conditions. Greenhouses, rain shelters, plastic tunnels, mulches,
insect-proof net houses, shade nets etc. are used as protective structures
and means depending on the requirements and cost-effectiveness. Besides
modifying the plant’s environment, these protective structures provide
protection against wind, rain and insects. Protected cultivation offers several
advantages to produce vegetables and flowers of high quality and yields,
thus using the land and other resources more efficiently. This becomes
relevant to growers in India who have small land holding, say less than one
hectare. They would be interested in a technology, which helps them to
produce more crops each year from their land, particularly during off-season
when prices are higher. However, growing vegetables under protected
conditions requires comparatively high input cost and good management
practices, which have direct bearing on the economic viability of the
production system. Even if the protective structures are cost effective,
proper planning, management and attention to details are needed to achieve
maximum benefits. Growing vegetables and flowers under location-specific
suitable structures may accumulate substantial benefits even to small
growers.
2. PROTECTED CULTIVATION
Protected cultivation is the technique of providing favourable micro-
climate surrounding the plant body and is controlled partially or fully as per
the requirement of the horticulture crops grown during their period of growth.
In short, it is the modification of the natural environment to achieve optimum
plant growth. Protected cultivation may also indicate comprehensive system
of controlled Environmental agriculture in which all aspects of the natural
environment are modified for maximum plant growth and economic return.
There are many challenges in open field condition:
• Rising of healthy seedling
• Isolation management
• Seed production of parental line
• Promotion of hybrid seed production
100

• Short growing period

• Poor seed yield and seed quality
• Reduced storability
So, why we go for protected cultivation? Now in days population is
increasing sharply and due to modernization or infrastructure work is
increasing day to day, agricultural land is becoming less and less.
Greenhouses have proven to be a reliable solution to achieve these goals;
however, protected agriculture has the potential to lead to serious problems.
Therefore, the main benefit of protected cultivation is Environmental
conditions can be controlled e.g. lighting, temperature, humidity. Plants can
be grown in places where plants cannot normally grow. Plants can be grown
out of season or allows a longer growing season. The inability of people to
predict the weather and control the climate persists. This is accompanied
by a rising population with increasing numbers of affluent and demanding
people who insist on improved diets. Above all, there are limitations of land,
water, energy, mineral nutrients, and the need for improved management of
all resources. Thus, we will likely see a continuing increase in the extent
and dispersion of protected cultivation throughout the world (Wittwer and
Castilla, 1995).
Crops can be grown at greater densities leading to higher yields.
Harvesting does not depend on weather. Control of crop disease may be
more effective as infection may be restricted to a single glasshouse/
polytunnel. Recently there was a technical shift towards the production of
high quality hybrid seeds in protected structures such as net houses, low
cost net cum polytunnels for production of hybrid seeds of cucurbits and
solanaceous vegetables where as fan and pad cooled greenhouses for the
production of hybrid seed of high value vegetables like sweet pepper, hot
pepper, indeterminate tomato, melon and cucumbers.
Advantages of Protected Cultivation:
 It moderates light, temperature and humidity within the structure.
 The plant propagation is effective.
 It helps in improving production in terms of quality and quantity.
 It reduces infestation of pests and diseases.
 It ensures weed free cultivation.
 It helps in saving water and fertilizer requirements as compared to
 101

open field cultivation.

 It reduces development period of the crop with better quality.
 It facilitates off-season production.
Constraints of Protected Cultivation:
 Cost of basic and infrastructure development is very high.
 Regular electric power supply is indispensable.
 Technical knowledge and expertise is decisive.
 Lack of suitable varieties / hybrids for greenhouse cultivation
3. STRUCTURES/ METHODS USED FOR PROTECTED
CULTIVATION
There is a wide scope in protected cultivation as an entrepreneur.
But before starting entrepreneurship in protected cultivation, we need to
know about various structures and methods generally used for protected
cultivation. Some of protective structures for crop production range from
simple provisions such as rain shelters, shade houses, mulches, row covers,
low tunnels, cloches to greenhouse structures with passive or active climate
control are mentioned below in brief.
3.1. Rainout Shelters
Rainout shelters are specifically designed to protect the required
land area against receiving precipitations so that the drought stress
experiments can be formulated under controlled condition. There are many
types of rainout shelters which are designed and used, with better or lesser
results by emphasizing on important issues in designing, constructing and
operating rainout shelters.

a) Static design of rainout shelter b) Movable design of rainout shelter

Fig. 1. Rainout shelter with automatic version alongwith sensors and sprinkler facility
102

There are two main designs for rainout shelter- static and movable
(Fig.1). Within the moveable design there are automatic/motorized and
manual versions. The automatic version is a signalled to move over the
protected plot by a rain sensor and an electric drive system. The manual
version is moved either by manually switching the drive on (manually driven)
or by manually pushing it (manually pushed) over the protected plot. The
‘manually pushed’ must by lightweight and hence it is cheaper and can
cover a limited land area.
The manual version is moved from its parking spot onto the protected
plot whenever a rain is expected and not when the rain begins. It is moved
into the parking space whenever rain is expected to cease completely.
Good weather forecasting service is therefore important. If forecasting is
unreliable, better have the shelter over the protected plot more time than
expected. Therefore, the shelter construction must allow sufficient light
inside as well as some ventilation. The direction of the protected plot and
the parking place of the shelter should be designed so that the parked shelter
will not shade the plot in the morning or the evening and that the direction
of the wind would not allow rain to blow under the shelter. The shelter
parking place cannot be used for growing experimental plots. Hence, many
automatic rainout shelters have become more popular even it is little costlier
than manual one. Automatic rainout shelter has installed with rain sensors,
and therefore, the shelter moves to the experimental site automatically once
the signals receive from rain sensors. It overcomes the problem of better
weather forecasting.
3.2 Shade Houses
A shade house is a structure which usually consists of a metal
frame that supports shade cloth - a type of screen that provides some
passive environmental control e.g. shading the plants from excessive sunlight
and wind. In warmer climates shade houses are useful for growing a range
of plants that grow well in cool to temperate regions but do not cope with
the amount of hot direct sun. In a cold snap, more elaborate shade houses
can be heated to prevent frost damage to the plants. A shade house is
important in plant production for gaining maximum growth, allowing plants
time to acclimatize to outdoor conditions and “harden off”. There are a
number of benefits in using a shade house:
 Protect plants from wind, hail and pests
 Protect plants from extreme hot weather
 Protect plants which are cold or frost sensitive over winter
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 Propagate new plants

 Grow tropical plants in cooler climates
 Improve space: Using multi-tier/layer shelves in a shade house
 Grow vegetables, cut flowers or berry fruits in off-season, faster
than might be achieved outside.
 Considerable savings in operation costs (energy, irrigation, spraying,
misting etc.)
 Labour cost: Better work environment increases work efficiency
 Avoid workers exposed to severe weather conditions
3.3 Row Cover
Row cover are also known as garden fabric, floating row cover or
garden netting, is any transparent or semi-transparent, flexible material,
like fabric or plastic sheeting, used as a protective covering to shield plants,
usually vegetables, primarily from the undesirable effects of cold and wind,
and also from insect damage (Hochmuth et al., 1987). Another form of
lightweight row cover is made from high-density polyethylene (HDPE) and
is a knitted fabric. It is strong, with an claimed life of eight years. It has a
low shading effect (16%) and allows natural air flow and rain and water
penetration. It also protects from light frosts, strong winds and hail. It is
used on low tunnels. It comes in a variety of widths and lengths. A protective
tunnel formed with row cover is sometimes called a cloche, although a
cloche, or bell jar, commonly refers to a distinct type of protective covering,
made of glass or plastic, usually placed over individual plants. No longer in
general use, a type of cloche employed in Europe involved panes of glass
attached with wire to form continuous tunnels to protect rows of crops.
3.4 Low Tunnels
Low tunnels are essentially miniature versions of high tunnels,
usually two to four feet tall at their peak and four to six feet wide. Low
tunnels are generally made from PVC pipe as a main frame with dome
shape structure. It is covered with plastic ploy film sheet which is weighted
down to the ground or buried rather than attached to the structure. It provides
a low cost, cost effective investment option for those seeking an entry point
to poly tunnel production or for those wishing to enhance their current poly
tunnel production capacity. It offers an alternative form of crop protection
and season extension that may work even better than a high tunnel for
some growers and in certain situations. These low cost structures can be
104

dissembled, move throughout the farm and work with the contour of the
land. Plastic covered low tunnels provide crops with several degrees of
protection against outer atmosphere. There are many advantages of low
tunnels:
 It is made up of light structure
 Cost is less
 Installation is quite easy
 It is easy to uninstall and rebuilt to other places.
3.5 Greenhouse
A greenhouse is a structure with a glass or plastic roof and
frequently glass or plastic walls. Its roof and sides have to allow light to
penetrate. The greenhouse heats up because incoming solar radiation from
the sun warms plants, soil, and other things inside the building faster than
heat can escape the structure. Greenhouses can also protect plants from
wind, rain and animals. There are different types of greenhouse structures:
a) Ground to ground
Free-standing greenhouse (ground to ground greenhouses), because
of their cost, are one of the most popular styles of greenhouse structures.
The free-standing greenhouse, ground to ground greenhouse can be designed
as a high tunnel or as an environmentally controlled greenhouse. Free-
standing greenhouses come in a wide variety of lengths and widths; most
popular is the 30 ft wide ground to ground greenhouse. The ground to
ground greenhouse often is the built with short sidewalls. It is a free-
standing greenhouse structure popular in reforestation for over-wintering;
ground to ground greenhouse can also be designed with environmental
controls and can be purchased with a number of different coverings.
Moreover, ground to ground, free-standing greenhouses are popular in every
climate.
b) Gable
A gable attached greenhouse is designed to look like an original
part of your architecture. Pick your favorite greenhouse design, glazing
and color and we will remove the gable wall to attach to your location. We
can place doors in the sidewalls or the gable end and increase sidewall
height to maximize available floor space. Convenient access to water and
power is great for those wanting to extend the season and enjoy the view
into the garden.
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c) Quonset
The Quonset, arch, clear span greenhouse is the most popular
greenhouse style for gutter connected poly or polycarbonate structures in
the world. They are available in many different widths and lengths. They
are available in roll form, round or square galvanized pipe, designed to meet
many loads. This Quonset style greenhouse is the one that is efficiently
made from virtually indestructible Kee-Klamp fittings is the one that you
need to put your money, and your trust, into building right for the very first
and very last time. The main advantage of Quonset style greenhouses are
their freestanding architecture, which lets in the greatest amount of sunlight
of any greenhouse design, including ridge and furrow greenhouses, ground-
to-ground greenhouses, and gutter-connected, arch greenhouses. This
extremely high amount of solar radiation is the best for cultivating your
crops from seedlings into full-grown, mature plants.
d) Tunnels
High tunnels are an increasingly popular trend for growers and a
proven technology for crop production. The term “high tunnel” is a loosely
defined phrase for growing fruits and vegetables in greenhouses, although
some high tunnels are used for cut flower production. High tunnels may be
used to extend the growing season by providing protection for early- or
late-season production, or they may be used for year-round growing. High
tunnels are becoming increasingly popular due to the low start-up cost and
quick rate of return on investment. High tunnels were originally greenhouses
with high sidewalls to enable tractors and tillers to easily enter and exit
greenhouses from either end. These greenhouses were simple in design,
with usually just one layer of poly, roll-up curtains and no electricity. Some
of these greenhouses only had poly on them for a few weeks before the
warmer weather allowed the cover to be removed safely without any
damage to the crops. High tunnel greenhouses enabled local growers to
produce crops during all four seasons and helped combat the forces of
unpredictable weather, particularly in the early spring.
e) Lath house/ Seran house
A lath house is a valuable asset in raising seedlings, rooted cuttings,
and young rhododendron plants prior to setting them out in the garden.
Properly used, it will modify the environment in which they are growing by
offering protection from hot, drying summer winds, reducing the intensity
of the sunlight, lowering temperatures, and by maintaining a higher humidity.
106

f) Lean to greenhouse
A lean-to greenhouse is a type of greenhouse that is built against
the side of another structure. Therefore, it has only one sloping roof and
shares a wall with another building with a different intended use. It is
considered as traditional structures, dating back to the Victorian period.
They are extremely tough and wind resistant. Lean-to greenhouses can
also be considered sun rooms when they are built against a residential
property, and can be used for both edible crops and ornamentals. There are
several factors to take into account with the lean-to greenhouses. The
height must be carefully checked, along with any metal base plinth, to make
sure that the ridge does not clash with any obstacles such as windows or
drain pipes. If the lean-to greenhouse is going over a door on the house, it
must be glazed with toughened safety glass. Another crucial point to
remember is that if there is a flue from a boiler exiting the wall, it must not
be discharged into the greenhouse. Majority of lean-to greenhouses are
built on a solid brick or concrete stem wall. They are often made with a
stone veneer that helps to retain heat as night sets in. Leaning against a
wall, which generally stores heat through the day and slowly releases it at
night, helps reduce the range of temperature fluctuations inside the
greenhouse, leading to a steadier overall temperature.
Cladding materials used for greenhouses:
There are wide varieties of materials that can be used and available
for greenhouse construction at present. With the current explosion of interest
from both commercial farmers and backyard gardeners, the options for
materials are constantly expanding. Some of the common selections by
farmers/ entrepreneurs are:
 Glass
 Fiberglass
 FRP (Fibre Reinforced Plastic)
 Polythene (Poly Venyl Chloride)
 Polycarbonate sheets
 Silpauline sheets
3.5.1 GREENHOUSE CLIMATE AND REQUIRED PLANT
ENVIRONMENT
A plant grows best when exposed to an environment that is optimal
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for that particular plant species. The aerial environment for the plant growth
can be specified by the following four factors: i) Heat or temperature; ii)
Light; iii) Relative humidity; and iv) Carbon-di-oxide (Malik and Sehrawat,
2015). While plants have precise optimum environmental conditions for
best growth, most are tolerant to variations in these conditions within some
limits. However, permanent damage would occur when they are exposed
to conditions outside these limits. At the same time, plants are subject to
attack by pests and diseases. Greenhouse crop production provides
protection against adverse environmental conditions and allows pests and
diseases to be excluded or controlled. Besides providing a protective
enclosure, a greenhouse also acts as a ‘heat trap’. It admits solar radiation
and converts this energy into heat by raising the temperature of the
greenhouse air. While this is the basis of the greenhouse’s ability to perform
its tasks, it also affects other environmental factors (Malik and Sehrawat,
2015). Environmental conditions inside the greenhouse can be modified
suiting to the potential growth of plants. The extent of climate modification
will, however, depend on the design of greenhouse and is generally related
with its cost. Higher the capability of greenhouse to modify its climate,
higher is the cost of its construction.
4. FACTORS AFFECTING THE SELECTION OF STRUCTURES
The selection of structures to be utilized for seed production depends
on the type of seed crop and local environmental conditions like sunlight,
maximum and minimum temperature, wind speed, humidity, rainfall, snowfall
etc. Simple plastic covered net houses may be enough to produce hybrid
seeds in rainy or winter seasons in many parts of south India. But it is
difficult to raise sweet pepper seed crop in summer months in such net
house because of very high temperature and very low humidity inside the
net house. In case of fan and pad cooled green house sweet pepper seed
production can be taken up throughout the year. Plastic houses with top
ventilation can be used for seed production of temperate vegetable crops in
the hills of north India. Computer controlled European type high tech glass
house are very expensive and economically not viable for seed production
under north Indian conditions (Tomar, 2015).
The cultivation of fruits plants per unit area of land provides a
comparatively larger volume of employment opportunities to the people
than the cultivation of field crops. A significant level of increase in the
labour absorption in fruit cultivation over the few years also reflects the
importance of horticulture for the overall development of the area (Nain et
al., 2013). The wealth may be created by individuals who take the major
108

risks in terms of equity, time and career commitment of providing value to

some product or services (Kuratko and Hodgetts, 2001). The product or
service itself may or may not be new or unique but value must somehow be
infused by the entrepreneur by securing and allocating the necessary skill
and resources.
5. LOCATION OF GREENHOUSE AND DESIGN CRITERIA
For locating the greenhouse, a piece of land larger than the grower’s
immediate need should be acquired. The ultimate size of the greenhouse
range should be estimated. Area should then be added to this estimated
figure to accommodate service buildings, storage, access drives and a parking
lot (Singh, 2015). The floor area of service buildings required for small
firms is about 13% of the greenhouse floor area, and it decreases with the
increase in size of the firm. On an average, service buildings occupy 10%
of the growing area. The service building is centrally located in a nearly
square design of the firm, which minimizes distance of movement of plants
and materials. Doors between the service buildings and the greenhouse
should be wide enough to facilitate full use of the corridor width. Doors at
least 3.1 m wide and 2.7 m high are common (Singh, 2015). It is good to
have the greenhouse gutter at least 3.7 m above the floor to accommodate
automation and thermal blanket and still leave the room for future
innovations.
6. PROTECTED CULTIVATION AND ENTREPRENEURSHIP
Majority of entrepreneurs are similar and an imperative query from
their side that how this protected cultivation helps in entrepreneurship to
enhance their income. As we all aware that the horticulture production in
India has achieved considerable progress during last three decades; whereas
the average productivity of different horticultural crops is quite low as
compared to the best yields at national and world level, indicating the scope
to enhance the yield in different horticultural crops by many folds along
with its quality. This is due to potential yield and the actual yield of various
horticultural crops is fluctuating with pleasing space, some vegetable crops
are realized even less than 50% of their potential yield. Sometime the
farmers who grow their horticultural crops during main season are even
not getting back their cost of production, but the prices of the same
horticulture produce are very high during off season. During rainy and post
rainy seasons, many horticultural crops are the major limiting factor for
their outdoor production especially for vegetables as they are highly
influenced by various biotic and abiotic stresses. The demand of off-season
and high quality fruits and vegetables is increasing significantly under present
 109

market scenario of big cities, and therefore, it has the right time to call the
attention of the vegetable growers for diversification from traditional way
of vegetable production to protected cultivation. Protected cultivation has
great potential in augmenting production and quality of vegetables, flowers
and in some fruit crops in main and off season and maximizing water and
nutrient use efficiency, under varied agro- climatic conditions of the country.
Since, it can be profitably used for growing high value vegetable crops like,
tomato, cheery tomato, colored peppers, parthenocarpic cucumbers, flowers
like cut flowers, chrysanthemum, lilium fruits like strawberry, grapes etc.
and for off season cultivation of vegetables and their healthy and virus free
seedlings, this technology has great potential especially in peri-urban
agriculture in near future (Malik, 2015). Protected cultivation in partially
modified environment structure is useful in combating both biotic and abiotic
stresses directly affect the productivity and quality of horticultural crops.
Therefore, protected cultivation needs proper precaution with an effective
planning and attention including timing of production and harvest so that the
entrepreneurs get higher market prices and choice of varieties adopted to
the off season environment. All the farmers who are living in urban adjacent
areas of the country can successfully diversify their traditional cultivation
practices by adopting or using various levels of protected cultivation
technologies for production of horticultural crops looking to their resources,
availability of emerging market of usual and unusual off season horticultural
produce, year round demand of high value vegetables like slicing tomatoes,
coloured peppers and parthenocarpic cucumbers etc. High quality nursery
raising in vegetables is the other area, where complete diversification in the
traditional system of nursery raising is required. All kind of protected
technologies may not be economical and useful to the farmers in India,
because of their very high initial, running and maintenance cost, but some
protected technologies are simple and highly profitable under Indian
conditions and more specifically for peri-urban areas, which can be adopted
by Indian farmers for production of different horticultural crops in the
following manners.
The improved high-quality seedlings through good quality seeds at
right time and at appropriate place is one of the cheapest but most important
ways to ensure high productivity and high quality of the produce.
Traditionally, most of the Indian farmers raise the seedlings of vegetables,
flowers and fruits like papaya seedlings under open field conditions. The
raised seedling through such types of traditional methods are always the
problem of inferior quality, as the seedlings are infected with virus when
raised in open during rainy and post rainy season. On one side soil borne
110

fungus and nematodes create severe problem for raising the seedlings in
soil media in open fields during hot summers and rainy season but on the
other hand the very high cost of hybrid seeds in vegetables has also warranted
the farmers to improve or change their traditional nursery raising method to
increase the productivity and quality of vegetables (Malik, 2015). A large
number of virus free healthy seedlings of different vegetables can be raised
in a small area of green house in plastic pro-trays by using soil-less media
for growing vegetables either for main season or for their off season
cultivation. With the use of this technology it is now almost possible to raise
healthy vigorous seedlings of different cucurbits, otherwise it was not
possible in the traditional system of nursery raising. The farmers or
unemployed agriculture graduate youths of our country can very successfully
start nursery raising as a small scale industry in major vegetable growing
pockets of the country. By this way the vegetable growers will get the virus
free or off-season healthy nursery as per their requirement and it will also
generate some employment in agriculture sector. Therefore, this is the
foremost to encourage the new generation entrepreneurs to help in
diversification in horticulture through protected cultivation with proper
guidance by providing the awareness of determine potentially successful
crops for each area based on climate, crop requirements, technology level
required, and market price potential. It is also essential to work out and
identify niche markets, domestic and export, that could generate sufficient
revenue to recover the upfront costs of protected cultivation.
7. ENCOURAGEMENT FOR ENTREPRENEURSHIP
DEVELOPMENT
Any attempt to promote the farmers perceptions towards fruit
cultivation could improve their practice. Rural farmers including their family
members are in fact soldiers who implement and improve sustainable
agriculture, so promoting their knowledge, improving their perceptions and
also increasing their practice are all the important prerequisite of sustainable
fruit production (Nain et al., 2013). Strategy emphasizes much on long-
term decision making with regard to the future of the farm. Strategies for
keeping up with business demands is related to the entrepreneur’s focus on
commercial relations, the branch and direct business relations (customers
and suppliers) and on informal contacts with fellow entrepreneurs. These
contacts are important in retrieving relevant information that will help to
keep up with business demands (Bosma et al., 2000). Proper use of the
knowledge infrastructure helps the entrepreneur to react effectively to any
new developments (Schilden and Verhaar, 2000). Nain et al. (2012)
emphasized that researcher need to be active participant in the early adoption
 111

process to nurture the technology until market selection begins to work.

Strategies are affected by the farm feature, by the environmental feature,
region and by the personal feature of the entrepreneur. As such indicative
measures can be enlisted for the policy makers, how, and if, agricultural
entrepreneurs must be dealt in the era of the radical changes in agriculture
(Nain et al., 2013). Strategies at policy level and at field extension level can
bring measurable improvement in entrepreneurial knowledge, skills, abilities
and aspirations of farmers.
8. FUTURE THRUST AREAS / RESEARCHABLE ISSUES IN
INDIA
 Standardization of region-specific designs of both Low / Hi-tech
protected structures and production technologies for Hi-value
vegetable and ornamental crops
 Standardization and validation of region and crop-specific IPM and
GAP strategies
 Standardization and adoption of modern techniques like grafting in
vegetable seedlings to manage the soil-borne pathogens
 Development of indigenous varieties suitable for protected cultivation
 On-farm value addition and cool-chain management
 Human resource development keeping in view the entrepreneurial
skill development especially for export oriented production
9. CONCLUSION
Horticulture has emerged as an engine for economic growth and
prosperity of Indian farmers. Strengthening Horticulture sector will have
positive impact on removing poverty and improving income of farmers.
Protective cultivation generates immense employment with wide boost to
horticultural production and helps the betterment of entrepreneurs. Farmers
grow up as entrepreneurs through protected cultivation and calibre to
introduce innovative techniques in protected cultivation. Thus, protected
cultivation helps to generate employment as well as proliferating income of
farmers and in turn contribute for economic development of the country.
REFERENCES
Boruah R., Sharma S.M. and Das A., 2015. Entrepreneurial opportunities through horticulture
in Assam. RASHTRIYA KRISHI, 10(1): 43-45.
Bosma N.M., Praag V. and Wit G.D., 2000. Determinants of successful entrepreneurship.
112

Research report 0002/ E. EIM, Zoetermeer: 35.

Hochmuth G.J., Hochmuth R.C., Kostewicz S. and Stall W., 1987. Row covers for
commercial vegetable culture in Florida. Institute of Food and Agricultural Sciences
(University of Florida). Retrieved 19 March 2015. Article marked reviewed by
publisher in 2012.
Kuratko D.F. and Hodgetts R.M., 2001. Entrepreneurship - A contemporary approach.
New York, U.S.A: Harecourt College Publishers.
Malik A. and Sehrawat S.K., 2015 . Protected cultivation technology. In Training Manual:
Protected Cultivation of Horticultural Crops, Eds. Arvind Singh, Surender S Dhankhar
and KK Dahiya, pp. 1-8.
Nain M.S., Singh R., Vijayragavan K., Vyas A.K., 2012. Participatery linkage of farmers,
technology and agricultural researchers for improvement wheat production in national
capital region of India. African Journal of Agricultural Research, 7(37): 5198-5202.
Nain M.S., Singh R., Sangeetha V., Chandel S.S., Kumar P. and Peer J.A., 2013. Strategies
for entrepreneurship development through fruit production in jammu and kashmir
state. Agric. Sci. Digest., 33(3): 165-171.
Schilden M. van der and Verhaar C.H.A., 2000. A concept of modern entrepreneurship in
Dutch Horticulture. In: J.P. Ogier (ed.), Proc. of the XIVth International Symposium
on horticultural economics, ISHS, Leiden, pp. 439-447.
Singh A., 2015. Designing Greenhouse. In Training Manual: Protected Cultivation of
Horticultural Crops, Eds. Arvind Singh, Surender S Dhankhar and KK Dahiya, pp.
9-16.
Tomar B.S., 2015. Vegetable seed production under protected structures. In Training
Manual: Protected Cultivation of Horticultural Crops, Eds. Arvind Singh, Surender
S Dhankhar and KK Dahiya, pp. 29-36.
Wittwer S.H. and Castilla N., 1995. Protected cultivation of horticultural crops worldwide.
HortTechnology, 5(1): 6-23.
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Chapter
9
ENTREPRENEURSHIP
DEVELOPMENT THROUGH FRUIT
AND VEGETABLE PROCESSING
Manoj Kumar Mahawar, Bibwe Bhushan, Srinivas Girjal, Kirti
Jalgaonkar, Vijay Singh Meena and Bharat Bhushan

1. INTRODUCTION
Agro-industries are those enterprises that process agricultural raw
materials into edible or consumable form. In that process, agro-processing
wastes may also be utilized for extraction of natural bioactive compounds
so as to be used in pharmaceutical and other industries. An agro-processing
plant can open up new opportunities to the farmers facilitating income and
employment generation. However, the industries dealing with fruit or
vegetable processing are characterized by seasonality, perishability and
variability of raw materials. In such industries, the raw materials can only
be procured in particular season while processing operations may continue
for the off season. For the processing of raw materials by the agro-industries,
greater speed in handling, storage and distribution is required. The raw
materials obtained for processing vary in their quality as well and hence the
emphasis must also be given towards post-processing management also.
Such characteristics make the procurement rather restrictive and the
industries are amenable and move viable to the locations nearer to the
source of raw material.
India is known as fruit and vegetable basket of the world. It is the
second largest producer of overall fruits and vegetables production in the
world, after China and one of the centers of origin of fruits and vegetables
with the total production of 81.285 million metric tonnes of fruits and 162.187
114

million tonnes of vegetables till the year end 2013 (NHB, 2013). It has the
potential to be the world’s largest food producer which is bestowed with
one of the best natural resources in the world and several factors like
Increasing urbanization, nuclear families, working women, disposable income
and changing lifestyles are gearing up the Indian food supply chains for a
better future. Organized retail and Private label penetration, demand for
functional food, and increased spend on health food are major drivers for
the growth of this sector (Viswanadham, 2007). As the population is
increasing, the demand for such food is also increasing.
India has a strong raw material base for the food processing industry.
India is one of the largest producers of certain fruits, vegetables, pulses,
cereals and dairy products such as mangoes, papaya, potatoes, onions, ginger,
check peas, rice, wheat, groundnuts, milk and eggs among others. Over
time, there has been a continuous increase in the production of food
processing industry. The total value addition of the food processing sector
as a share of GDP manufacturing was 9.8 percent in 2012-13. Yet in India
the sector suffers from several bottlenecks leading to an estimated wastage
of 25-30 percent of agriculture produce (Chari and Raghavan 2012). India
lacks agricultural raw materials of processable quality. Only 7 percent of
the total Indian perishable produce is processed, which is extremely low
compared to countries such as the US (65 percent), Philippines (78 percent)
and China (23 percent).
Food and grocery is the largest segment in India‘s retail sector,
with a share of more than 60 percent in India‘s total retail market in 2014.
The vast production base offers India tremendous opportunities for export.
During 2015-16, India exported fruits and vegetables worth Rs. 8,391.41
crores which comprised of fruits worth Rs. 3,524.50 crores and vegetables
worth Rs. 4,866.91 crores.
The food-processing sector employs about 13 million persons directly
and about 35 million persons indirectly. India’s agricultural production base
is quite strong but at the same time wastage of agricultural produce is
massive. Processing is very low at around 2.20% in fruits and vegetables,
35% in milk, 21% in meat and 6% in poultry. Value addition is only to the
tune of 20% Food processing sector contributed about 14% of manufacturing
Gross Domestic Product. India’s share in world trade in respect of processed
foods is only 1.6 percent and India was ranked 27th in 2006 in terms of
trade performance of Processed Food Products. (APEDA, 2015)
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2. RECENT TRENDS IN FOOD PROCESSING

In India, a substantial portion of net value added from agro industries
is derived from unregistered and cottage small units and the contribution of
registered units is very meagre. Generally in food processing industries,
about 90% of total value added comes only from primary processing while
secondary tertiary processing account for a small proportion.
In addition, by-product processing of major fruits and vegetables
has huge potential for industrial growth in rural areas as well.
Organizational problems of fruit/vegetable based industries and the
basic characteristics are as follows:
1. Industries based on fruit and vegetables depend upon the seasonality
of the raw material. This factor compels such industries to procure
most of their raw material requirements during the peak harvesting
season and a little after that so that they can process them during
and after the season. This enables the industries to market their
processed products round the year as per the existing demand.
2. Owing to the perishable nature of F & V’s, additional care in
handling, transportation, storage and processing is required.
3. The location also acts as a key feature for establishment of such
industries, as the raw materials are highly perishable and hence
these units should be in a close proximity to the availability of raw
materials. It also reduces the expenditure towards transportation
cost.
4. Another technical feature of this industry is that unlike other
industries, such unit’s faces variability in the quality and quantity of
their raw materials.
5. In addition, the price of raw material also does not remain steady
throughout the year which makes difficult the task of fixing the
prices of processed products.
6. The domestic demand for processed foods is very low as most of
the Indians have a habit of consuming fresh F &V’s and moreover
the prices of processed products are beyond the reach of common
man.
7. Such industries also face many hurdles in developing the domestic
market due to lack of infrastructural facilities including cold storage,
suitable transport facilities and adequate food testing laboratories.
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8. Besides, the owners of such industries do not have strong

information network for marketing of their products.
9. Another characteristic of this industry is that government play
supplementary role in fruit processing by providing facilities to the
people at certain agricultural centers at very nominal cost for
consumers. However, such facilities are very limited and are
confined to only one or two products. Such services rendered at
subsidies price create competition for the private enterprises.
10. The raw material represents a large investment. It is therefore
important that strict orderliness and method are employed to ensure
accuracy in preservation and safety at all stages of raw materials
movement and custody.
11. Owing to the perishable nature, the F & V’s required to be preserved
in cold storage to avoid wastage and decay. But the entrepreneurs
of the local units with their limited capital neither could afford to
have their own cold storage nor has the government come forward
to help them in this regard. Moreover, though most of the units are
started by the entrepreneurs at their own residential houses with
sufficient space for production yet they are carried on in an
unorganized way.
12. Since most of such processing units are being operated through
household and hence are having a small scale of operation. And as
the space available in very limited, the minimum space requirement
as per FSSAI license/standards could not be fulfilled. As a result,
their product though of good quality is deprived of getting FSSAI
license.
13. In certain rare instance, there is also a capability of foreign uneatable
particles found in the processed foods. This is because the items
are often prepared in an unhygienic manner.
2.1 Production of an industry
For the success of any industry, production should be carried on in
a smooth and uninterrupted way. It can be only possible when the purchasing
of the raw materials, machines and other equipment required for production
is done in an effective manner. In addition to this, the brought materials
need to be stored in an adequate manner to avoid wastage and decay.
Moreover, the production department has to see whether an efficient quality
control process is adopted to test the quality of finished products. The
production activities comprises of following:
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 Purchase: The requirement of proper materials, machines and other

accessories are must for any industry. Before going for large scale
production, sufficient quantity and assurance of continuing supply
to meet production needs and schedules must be managed. The
material quality must be adequate for the intended purpose and
suitable for the process and the equipment used. Procurement of
raw materials at consistently lower cost with quality is desired.
Efficient inventory management is also a contributory factor for
economic and successful operation.
 Storage: It is the function of receiving, storing and issuing of
materials. The raw material represents a very large investment
and hence strict orderliness and method are employed to ensure
accuracy in preservation and safety at all stages of material
movement throughout the production line.
 Quality control: The quality awareness must begin at the very
conception of a product and continue during the various stages of
its manufacturing till consumption. The quality cycle begins and
ends with the user. It starts when the users need is analyzed and
ends when the final product is accepted for consumption.
 Transportation: It plays a vital role both in production and marketing
of products. Bringing the raw materials from distant places and
inadequate cold storage facility may become the reason of
deterioration inevitably increasing the transportation cost.
 Preservation: Necessary steps need to be adopted for increasing
the keeping life of processed products. It can be achieved using
physical methods (heating, refrigeration, freezing, drying,
dehydration, and concentration), chemical methods (sugar, salt,
vinegar, potassium meta- bisulphate and sodium benzoate) and
fermentation.
 Finance: It is the most essential criterion for initial establishment
and further modernization of any business. Both the central as well
as state government has many financial schemes for establishment
of such processing ventures.
 Personnel: An industrial or commercial organization comes into
existence when a number of persons come together and work in
coordination. These people work together to achieve organizational
objectives. Human resource is of paramount importance for the
success of any organization. The management must deals with
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maintaining a satisfactory workforce.

 Labour: It is always and everywhere the largest critical factor for
any industry. It represents people employed or capable of being
employed in a productive activity. The manpower can be divided
into three main categories: skilled, semi-skilled and unskilled.
However, most of the times, there is a dearth of skilled manpower
in and around the established industry. In addition, there must be
uniformity in the standard rate of wages and timely payment of
wages must also be ensured.
 Training: It involves the transfer of defined and standard procedures
to the workforce to cope up with the future challenges in the
industry. The various institutes under Indian Council of Agricultural
Research (ICAR), State Agricultural Universities (SAU’s) and
Krishi Vigyan Kendra’s (KVK) must conduct training on processing
and value addition of F & V’s and train the manpower.
 Marketing: It is the aggregation of all those activities that are related
to the free flow of goods from the points of production to the points
of consumption. The pertinent marketing problem faced by the
units seems to be the most vital one.
 Packaging and labeling: Ordinary and simple type of labeling is
mostly preferred by the local units.
 Advertisement: The level of advertising the products must be
rigorously increased in order to compare with the commercially
available materials.
 Market research: It is among the most prominent step before
initiation of any industrial setup. A survey/study must be carried
out in order to understand the probable market behaviour before
launching of the products. In addition, few persons must be employed
for door to door sales and to bring feedback information regarding
the acceptance/ limitations of the product for further improvement.
3. METHODOLOGY TO TAKE UP FOR DEVELOPMENT OF
ENTREPRENEURSHIP
Indian agriculture is severely suffering with unacceptable level of
wastages and failed to provide remunerative prices to farmers. This problem
could be curtailed if appropriate strategies can be adopted for processing
of agricultural commodities (especially fruits and vegetables) at their
production catchments. In a study conducted by Nanda et al. (2012), the
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estimated losses are 5.8 to 18% for fruits and 7.5 to 13% for vegetables,
respectively. The food processing sector surrounds with plentiful
opportunities for the entrepreneurs, nevertheless the industry is forced to
revamp the overall value and speed of its innovations. Significant progress
of entrepreneurship in food processing segment will create work
opportunities for rural youth and thereby augmenting the living standard of
the people across the country (Negi, 2013).
3.1 Role of government
The government must create conducive business environment and
promote financial help via venture capitals, investors and business houses.
The ideal role for the government to be the enabler and provide adequate
infrastructure, ease in taxation, raising of fund, attract investments etc.
The MSME sector has taken few initiatives in this regard,
 Udyog Aadhar Memorandum- to promote ease of doing business
 Employment exchange for industries
 ASPIRE (Promoting innovation and rural entrepreneurs)- setting
up a network of technology to promote startups for innovation and
entrepreneurship in rural and agriculture based industry
3.2 Agricultural and Processed Food Products Export Development
Authority (APEDA)
This agency was established in December 1985 with its head quarter
at New Delhi. The main objective of the organization is to promote and
develop the exports of various processed products including the fruits and
vegetables. It plays a very important role in promotions of agricultural
commodities export from the country. APEDA has established cold storage
facilities at metropolitan cities of the country. It has also developed standards
of marketing for processed products. APEDA acts as a platform to take
the products to various national and international fairs and exhibitions. It
also arranges many seminars and conferences where experts are invited to
address the entrepreneurs regarding the different aspects of processing of
F & V’s and their export (Choudhury and Barua, 2006).
3.3 Indian Institute of Entrepreneurship (IIE)
This was established in the year 1993 by the Ministry of Industry
with its head quarter at Guwahati (Assam). The institute undertakes training,
research and consultancy activities in the field of small scale industry and
entrepreneurship. The institute also acts as catalyst for entrepreneurship
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development by creating suitable environment in a way by organizing

seminars and workshops for sharing experience on implementation of
programs of self-employment. The institute conducts various training
programs related to processing of fruit and vegetables which help them for
developing their technology, marketing, quality improvement etc (Choudhury
and Barua, 2006).
3.4 Ministry of skill development and entrepreneurship (MSDE)
The prime focus of this ministry is to focus on enhancing
employability of the youth through skill development. The proposed schemes
on Entrepreneurship Development by the government are:
1. Educate and equip potential and early stage entrepreneurs across
India
2. Connect entrepreneurs to peers, mentors, incubators
3. Support entrepreneurs through Entrepreneurship Hubs (E-Hubs)
4. Catalyze a culture shift to encourage entrepreneurship
5. Encourage entrepreneurship among underrepresented groups
6. Promote Entrepreneurship amongst Women
7. Foster social entrepreneurship and grassroots innovations
3.5 National Horticultural Board (NHB)
It was set up by the Government of India in 1984 as an autonomous
society with a mandate to promote integrated development of horticulture
to help in coordinating, stimulating and sustaining the production and
processing of F & V’s and to establish a sound infrastructure in the field of
production, processing and marketing with a focus on post-harvest losses.
The HQ’s is at Gurugram and total 33 offices are functioning throughout
the country. Developing post-harvest management infrastructure, provide
training and as well as education to farmers and processing industry personnel
for improving agronomic practices and promote consumption of F & V’s in
fresh as well as processed form are among the major objectives of this
board (Choudhury and Barua, 2006).
3.6 Small Industries Development Bank of India (SIDBI)
It was set up as an apex institution for promotion, financing and
development of industries in the small scale sector.
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4. FOCUS ON ENTREPRENEURIAL OPPORTUNITIES AND

RESOURCES
According to GEDI (Global Entrepreneurship Development Index)
2018, India ranked 68th out of 137 countries in the world and ranked 14th
out of 28 countries among Asia Pacific region a “middling” performance.
India performed above its overall score and its strength areas where are in
product and process innovation, start-up opportunities, risk acceptance,
internationalization, opportunity perception and robust competition in the
marketplace. Its accomplishment on human capital is broadly at par with its
overall performance. The entrepreneurial potential in India is on rise as per
the latest Global Entrepreneurship Monitor (GEM) Report on India for the
financial year 2016-17. According to the report rate of entrepreneurial
intention stood 14.9% compared to 9% in 2015-16. Whereas, the fear of
failure rate has decreased from 44% in 2015-16 to 37.5% in subsequent
year. It is also noted that India with its peers in BRICS economies suggests
that perceived opportunity is the highest and perceived capability is the
second highest among all. Thus, Entrepreneurship positive performance
leads to development of a country in several ways, viz., wealth creation
and distribution, employment opportunities, balanced regional development,
GDP and Per capita income, exports and community development at various
levels. Education, entertainment, retails, transportation, manufacturing, e-
commerce are some of the sectors in India which have been revolutionized
by entrepreneurship.
Agriculture and allied sectors are known to be the mainstay of the
Indian economy, which provides food and nutrition to 1.3 billion people and
creates forward and backward opportunities to support 60% of Indian
population contributing about 16% of Gross Domestic Product (GDP) of
India. Every individual, communities, corporate industries, etc., are directly
or indirectly dependent on agriculture either for raw material, farm labour,
marketing etc. to run their business smoothly. But, Indian agriculture is still
seen low in tech-industry with limiting the individual business towards quantity
oriented business rather than quality oriented profit. Over the last decade,
this situation has changed drastically due to economic liberalization,
government policies, a reduced shelter of agricultural markets and fast
changing, individual awareness and more decisiveness society.
Thus Agriculture and allied oriented entrepreneurship are moving
progressively more to adapt to the vagaries of the market, changing consumer
lifestyle, enhanced sustainable approach, improved ecological regulations,
new requirement for product quality, chain management, food safety and
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security so on. These changes have paved the way for new participator,
innovation, and portfolio entrepreneurship in agriculture and its allied
segments such as horticulture and its allied sectors (including fruits and
vegetables, plantation crops, flowers, spices, aromatic and medicinal plants).
India bestowed with a varied agro-climate and is highly favorable
for growing a large number of horticultural crops which includes fruits and
vegetables. It is the second largest producer of fruits and vegetables.
Entrepreneurial development through the fruits and vegetable mainly lies in
the rural India, where development agencies look into rural entrepreneurship
as an enormous employment potential, farmers take it as an instrument for
improving farm earnings and women see it as an employment possibilities.
With respect to fruits and vegetables, there are plenty of
opportunities in processing and value addition sector. Processing of
commodities (F & V’s) which are cheaper along with abundant availability,
results in higher profit margin for entrepreneurs. A brief description of such
fruits and vegetables with relevant information on number of valorized
products that can be prepared is described below:
4.1 Aonla
Aonla is amid such category of fruits which is available at a very
low price during its peak production season and a variety of value added
products can also be prepared. It has been in use for jam, jelly, segments,
pickle, preserve, chavanprash, candy, juice, squash, mouth freshner etc.
There are established machineries for different unit operations of aonla
processing with variable capacity and efficiency. The major unit operations
include grading, pricking, shredding, juice extraction and drying. There are
machineries available for each of the unit operation. Few tools/machineries
were fabricated and few were procured and arranged sequentially under
pilot plant facility at ICAR-CIPHET Abohar (Punjab). Description of the
machineries is as follows:
Table 1: Machineries to be used for aonla processing
S Machine Specifications Picture
1. Aonla harvester  Consists of a stainless
steel pipe with a hook type
structure and a net structure
composed in such a way that
it surrounds the tree system
 The hook on the top of
harvester is mired to the branch
and shaken vigorously
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 The fruits are collected by

the surrounded net.
 Capacity: 5-6 trees/h or
6 kg/min aonla
2. Aonla size grader  Based on size grading of
aonla fruits and has a capacity
of around 350-400 kg/h
 It consists of 10 cylindrical
rollers made of PVC plastic
which are placed at an
inclination of 3-10° from
horizontal
 Machine grades Aonla into
three sizes i.e. below 20 mm;
20-40 mm and 40-60 mm
 Grading efficiency was 75%.
3. Aonla pricking  The machine consists of a
machine feed hopper, pricking part
and outlet.
 About 50-70 holes are made
on each fruit before it comes
out of the machine
 Capacity to prick: 100 kg/h
4. Aonla shredding  Power operated machine is
machine designed for extracting whole
stone from Aonla
 Aonla gets scraped continuously
by the rotating blades, against
the concave and shreds are
obtained
 Capacity: 250-300 kg/h
5. Aonla pulper  Fruits are first heated in water
for about 10-15 min to separate
the segments from the stone
 Pulp is extracted by addition of
water equal to the weight of
segments and passing through
pulping machine.
6. Heating kettle  Can be used for concentration
of fruit juice/pulp.
 Capacity: 100 kg
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7. Tray dryer  For dehydration of aonla

shreds or stones to make
value added products like
mouth freshener and
powder etc.

Establishment of Aonla processing plant

Government institutes like ICAR, SAU’s etc. have given consultancy
to establish aonla processing plant in the production catchments of some
progressive farmers/entrepreneurs. Such type of technical guidance was
given to Mr. Kailash Chaudhary, by ICAR-CIPHET Ludhiana and the
established firm is named as Chaudhary Agro Bio- Tech, Keeratpura,
Kotputali, Dist. Jaipur (Rajasthan). At present, this industry is involved in
making value added products from aonla like juice, powder, candy, squashes,
pickles, sweets and exporting to countries like USA, UK, UAE and Japan
under brand name of KS BIO FOODS besides the domestic sale.
4.2 Kinnow
Kinnow is a high yielding hybrid mandarin in Punjab (India) having
48182 ha area under this fruit with production about 1.11 million tonnes in
2014 -15. It is also grown to some extent in Rajasthan, Haryana, Himachal
Pradesh, Jammu and Kashmir, Maharashtra, Tamil Nadu and Karnataka
also. Kinnow is grown in all the districts of Punjab but Fazilka and Hoshiarpur
are the main kinnow growing districts followed by Firozepur, Faridkot and
Amritsar. In Punjab, Kinnow occupies 55% of the area under citrus. The
overall post-harvest losses in kinnow were earlier about 25-30%, however,
subsequent the establishment of waxing and grading plants in Punjab and
Rajasthan, the losses are reduced to below 15%.
Harvesting and post-harvest handling operations of kinnow in pack
houses.
With respect to Kinnow, the general pack house operations after
fruit harvest include washing, waxing and grading. The sequential operations
by means of a pictorial flowchart are shown below (Fig 1).
Machines used for kinnow waxing, grading and packaging
 Feeding cum sorting conveyor
 Washing, sponging and waxing machines
 Waxing unit
 Drying section
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 Grader
-Rotary cylinder Grader (Reel grader)
-Roller Grader
 Packaging
-Regular slotted corrugated board box:\
-Telescopic corrugated board box
 Accessories:
-Plastic crates: (18-20 kg capacity)
-Labeling and sealing equipment
-Quality inspection tables
-Fork lift: used for lifting of crates, bags or packed kinnow boxes
-Conveyors
Sponging

Fig. 1. Pictorial view of pack house operations of Kinnow fruit

Fruit and Vegetable pilot plant established at ICAR-CIPHET Abohar

A pilot plant for processing and value addition of Aonla has also
been established at ICAR-CIPHET Abohar. This facility holds the purpose
of demonstration and providing hands on training for the upcoming
entrepreneurs who wish to have such type of facility at their vicinity for
Aonla processing and product development. The fruit processing plant
established at ICAR-CIPHET Abohar comprises of following machineries-
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Table 2: Machineries available in fruit and vegetable processing pilot plant

S. No. Machine Capacity Operation of machine
1. Fruit washer 100-200 kg/h Washing of fruits
2. Fruit crusher 40-50 kg/h Crushing of fruits into pulp
3. Juice extractor 80-100 kg/h Juice extraction from fruits
4. Juice pasteurizer 100 l/h Pasteurization of fruit juice
5. Storage tank 100kg Handling of product
6. Steam jacketed kettle 100 liters Concentration of product
7. Vacuum bottle filling machine 0-1000 ml, Bottle filling of products
Filling speed:
20-30 bottles/
min
8. Bottle Crowning Machine 100-150 Placing of crown over bottles
bottles/h
9. Blancher Container 50kg Blanching of fruits

Common utilities available in plant are listed below:

a) Baby boiler
b) Tray dryer
c) Sealing or packaging machine
d) Vacuum packaging machine
e) Weighing machine
f) Material handling devices and utilities
g) Volume measuring devices
The facilities of established pilot plant are being used by the
entrepreneurs for preparation of several value added products from fruits
like Aonla, Mango, Guava, Kinnow, Sapota, Plum etc. Further the value
added products that can be prepared using the established pilot plant from
different fruits is given below:
Table 3: Value added products that can be prepared from listed fruits
Commodities Value added products
Aonla Whole aonla/ segment based products: Preserve (Murabba), aonla
candy, aonla pickleJuice based products: Aonla juice, squash, Ready
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to Serve (RTS) beverageAonla powder based products: Aonla shred

powder, mouth freshner, churanOther products: Laddu, dry shreds,
jam, sauce, chutney
Mango Pulp based products: Slices/ amchur, leather/ aampapad/ slab/ amawat,
jam, preserve chutney, toffeeSegment based products: preserve
(Murabba), candy, pickleJuice based products: juice, squash, nectar,
Ready to Serve (RTS) beverage
Pomegranate Anardana, frozen arils, seed oil, juice, squash, RTS, nectar, jam, jelly,
peel powder
Guava Pulp, squash, juice, RTS, nectar, jam, jelly, leather, cheese, toffee
Sapota Pulp, squash, RTS, nectar, jam, jelly, leather, dried shreds, powder
Plum Squash, jam, jelly, chutney, sauce
Kinnow Juice, squash, syrup, marmalade, candied peels
Tomato Puree, ketchup, sauce, soup, peel powder, dried slices, lycopene
Potato Chips, shreds
Onion and Garlic Dried flakes, powder, paste
Okra Dried slices
Chilli Paste, powder, puree, pickle, chutney

5. ENTREPRENERIAL OPPORTUNITIES IN FRUITS AND

VEGETABLES AND THEIR RESOURCES
Overcoming challenges can be a game changer in augmenting
opportunities to setup entrepreneurship in fruits and vegetable business.
Some of the challenges and opportunities are been discussed here under
1. Post-harvest loss and their preventive measure
The fruit and vegetable segment has grown vigorously both in
volume and in variety of outputs which are traded globally. Improved
and precise technology, falling transportation costs, improved
channelized marketing and evolving international markets, have all
contributed towards robust growth. This increased level of fruit
and vegetable output has, unfortunately, mismatched by processing,
value addition, preservation and certainly developments in supply
chain management. While minimal and traditional processing
technologies present considerable opportunities for innovation and
vertical diversification in the fruit and vegetable sector, relatively
few small and medium enterprises (SMEs) are able to tap into and
benefit from these opportunities.
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Foreign Direct Investment (FDI) of 100% in food industry and

streamlining the norms to set up business unit has increased the
number of processing unit in India. Further, 100% FDI under
Government route for retail trading through e-commerce, is
permitted in respect of food products manufactured and/or produced
in India. Establishment of 42 mega food parks, a primary processing
center for grading, sorting, packing and collection center various
producers. Agro-Processing Cluster (APC) enables to facilitate
modern infrastructure, common facilities and encourages group of
entrepreneurs to set up food processing units based on cluster
approach by linking groups of processors with farmers/ producers
and markets through well-equipped supply chain.
2. Challenges and avenues in cold chain
The estimated annual production of fruits and vegetables in the
country is about 130 million tones. This accounts for 18% of our
agricultural output. Due to diverse agro climatic conditions and
better availability of package of practices, the production is gradually
rising. Although, there is a vast scope for increasing the production,
the lack of cold storage and cold chain facilities are becoming major
bottlenecks in tapping the potential. The cold storage facilities now
available are mostly for a single commodity like potato, orange,
apple, grapes, pomegranates, flowers, etc. which results in poor
capacity utilization.
As per National Centre for Cold-chain Development (NCCD), the
Current gap in cold storage infrastructure estimated to be 40 million
metric tons. The investment is expected to grow rapidly in India’s
cold chain in next 5 to 10 years. For instance, refrigerated transport,
it is required 3 times the present infrastructure to handle full service
in storage capacity i.e the current estimate of refrigerated transport
shows that the available on road capacity is of 3.6 million MT only.
The other opportunities lays in testing cum certification labs, research
and framework development centers, training centers, IT network,
handling and packaging equipment. Moreover, service tax has been
exempted for various project erections pertaining to cold storage.
3. Fruits and vegetable exports
With production base of fruits and vegetable, India has tremendous
opportunities for export. During 2017-18, India has exported fruits
and vegetables worth Rs. 9,400 crores. But, India’s share in the
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global market is still nearly 1% only, but there is an increasing

acceptance of fruits and vegetables from the country especially
for Pomegranates , Mangoes, Grapes, Bananas, Walnuts in fruits
and Onions, Mushrooms, Bitter Gourd, Okra, Chilles and Potatoes
from vegetables . This may be due to concurrent developments in
the post-harvest management such as quality assurance, packaging,
strict regulation, standard operating procedures, cold chain
infrastructure etc. Even large investment pumped in by public sector
as well as initiatives of private sector with APEDA’s assistance
integrated post-harvest handling facilities and several centers for
perishable cargoes and have been set up in the country. Initiatives
to build capacity building at the farmers, processors and exporters’
levels have also contributed towards this effort. These are some of
the key factors have placed the food processing industry on a high
growth track as reflected by the increase in food processing from
11 per cent in 2009 to 17 per cent in 2017.
4. Technology delivery systems
a. Farm level intervention: Enabling farmers to cultivate multiple
superior varieties with higher juice and brix content with
distributed production. A distributed time for yielding varieties
prevents glut and ensures stabilized prices, making lesser market
risk for farmers. Development of clusters at different places
for same agriculture commodity can create forward and
backward linkage with better logistics and marketing channels.
Consultancy on farm extension and sustainability are the fast
and thrust area to grow entrepreneurs at full scale.
b. Industry level intervention: Processor level interventions in citrus
and apple fruits may get tax exemptions and financial subsidies
for capacity expansion and improving the financial viability of
existing units. The government is keen in looking at subsidizing
the integrated units to setup for by-product processing.
c. Corporate level interventions: Fragmented lands are often
considered the biggest challenge for Indian agriculture;
however, there has been success of a cooperative system in
the fragmented dairy sector. There could be projects to address
all aspects of fruit juice concentrate processing thus leading to
a Fruit Circular Economy. These projects can be new venture
in terms of developing new varieties, , farm extension services
and providing e-marketing, digital market linkage to the farmers.
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6. RESOURCES FOR AUGMENTING HORTI-ENTREPRENEURIAL

OPPORTUNITIES
 Agro processing clusters set up by Project Execution Agency
(PEA)/ Organization such as Govt/PSUs/ Joint Ventures/ NGOs/
Cooperatives/ SHGs/ FPOs/ Private Sector/ individuals etc. and
are eligible for financial assistance.
 Under central governments scheme SAMPADA, financial
assistance in setting up integrated cold chain, preservation and
value addition infrastructure facilities are provided with an
objective to arrest post-harvest losses of horticulture produce
by providing infrastructure from farm gate to the consumer
 Under PMKSY Scheme for Infrastructure for Agro Processing
Clusters, which aims at development of modern infrastructure to
encourage entrepreneurs to set up food processing units based on
cluster approach
 Technical Agencies (TA) of Ministry of Food Processing Industry
(MoFPI) will be organizing capacity building workshops, training
for Board of Directors (BoDs), business planning and other key
members of the FGs on entrepreneurship and management related
to food processing.
 Scheme under APEDA which provides financial assistance for
development of an adequate infrastructure for export of agricultural
products. The scheme covers fresh produce and processed food
products. It primary role is on setting up of post-harvest handling
facilities to entrepreneurs.
 Indian Institute of Horticultural Research (IIHR) provides on-site
incubation facility in order to encourage start-ups in fruit and
vegetable processing
 Food Processing Training centres (FPTC) established under various
institutes recognized by MoFPI imparts training on various area
such as cluster creations, processing of fruits and vegetables, frame
work and export regulations, analysis procedure , startups to
producers, entrepreneurs etc.
7. ECONOMICS INVOLVED TO TAKE UP THE VENTURE FOR
ENTREPRENEURSHIP DEVELOPMENT
Indian Council of Agricultural Research (ICAR) in its Consortium
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Research Platform (CRP) project scheme has directed the respective

institutes for establishment of pilot plants with respect to processing and
value addition of fruits, vegetables, spices, oilseeds, grains etc. These
established are serving as training cum incubation center for the local
farmers/entrepreneurs. They can process their raw material under the
guidance of trained professionals of the institute. The operating cost is also
very minimal so as to encourage the local community for processing of raw
produce. Utilizing the incubation facilities will not only ease the whole process
for the farmers but also the collaboration with institutes will help them in
gaining authenticity of their processed produce. ICAR-CIPHET is actively
engaged in conducting entrepreneurship development programs (EDP’s)
on different aspects of processing of cereals, oilseeds, horticultural produce
etc. The duration of such trainings will vary from 3-5 days and the fee
structure also varies with technology/product.
Suggestions for further improvement in EDP (Dixit et al. 2014)
 The nomination of participants to the training must be based on
certain criteria based on need assessment, willingness, socio-
economic status, occupation, resources availability and market
accessibility etc.
 There must be a continuous monitoring system of trained
entrepreneurs so as to keep them updated with changing
technological and market environment.
 Awareness on marketing aspects and funding source are vital and
guidance should be given to the participants.
 The basic information about the ‘Food safety and standards’ and
procedural guidelines for acquiring license from Government or
any other authorized body.
 The fees should be waived off so as to increase the number of
interested participants.
8. CONCLUSION
India abides to its agro climatic condition is a place suitable for
growing wide range of fruit and vegetables. The post-harvest losses while
handling and marketing are substantial and processing of these horticultural
produce into various kinds of value added products not only stabilizes the
market, it also creates opportunity for employment of rural youth which in
turn will help in increasing the farmers income. The role of entrepreneurship
in agro-processing in developing countries like India is very significant.
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Entrepreneurship development programs conducted by ICAR-CIPHET

have impacted well in terms of motivation and adoption of post-harvest
technology. The establishment of processing units has resulted into economic
benefits to the intended beneficiaries besides generating direct and indirect
employment to the society. Finally, need based EDP’s considering the socio-
economic conditions, willingness, resources availability, geographical
dimensions and market for final product are to be promoted so as to
encourage processing in production catchments.
REFERENCES
APEDA (2015). Database of Agricultural and Processed Food Products Export Development
Authority
Chari A, Raghavan TCAM (2012). Foreign Direct Investment in India’s Retail Bazaar:
Opportunities and Challenges. The World Economy: 79-90
Choudhury M, Barua N (2006). Marketing of processed fruit and vegetable. Book (ISBN
81-7035-365-3): 1-193
Dixit AK, Rawat I, Chopra S, Jain D (2014). Entrepreneurship development programme
on ICARCIPHET technologies: An impact assessment, Technical bulletin no: ICAR-
CIPHET/Pub./2015/01
Negi S (2013). Food Processing Entrepreneurship for Rural Development: Drivers and
Challenges. In IIM, SUSCON III Third International Conference on Sustainability:
Ecology, Economy & Ethics (pp. 186-197). New Delhi: Tata McGraw Hill Education.
NHB (2013). Area and Production Statistics. Retrieved February 4, 2014, from National
Horticulture Board: http://nhb.gov.in/ area%20_production.html
Viswanadham N (2007). Can India be the food basket for the world?, Working Paper series,
IBS, Hyderabad. Retrieved from http:// www.cccindia.co/corecentre/Database/Docs/
DocFiles/Can_ India_be.pdf
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Chapter
10
COMMERCIALIZATION OF
FLORICULTURE FOR
ENTREPRENEURSHIP
Mukesh Kumar, Madhu Bala, Kiran Bhagat and
Anant Kumar

1. INTRODUCTION
Floriculture is the segment of horticulture concerned with
commercial production, marketing, and sale of bedding plants, cut flowers,
potted flowering plants, foliage plants, flower arrangements, and
noncommercial home gardening. Floriculture crops include bedding plants,
flowering plants, foliage plants or house plants, cut cultivated greens, and
cut flowers. As distinguished from nursery crops, floriculture crops are
generally herbaceous. Bedding and garden plants consist of young flowering
plants (annuals and perennials) and vegetable plants. They are grown in
cell packs (in flats or trays), in pots, or in hanging baskets, usually inside a
controlled environment, and sold largely for gardens and landscaping.
Geraniums, impatiens, and petunias are the best-selling bedding plants.
Floriculture is an ancient farm activity with immense potential for generating
remunerative self-employment among small and marginal farmers. Flowers
are being cultivated in India from time immemorial. Since ancient times
ornamental plants have been an integral part of life with gardens, flowers,
and ornamental horticulture being noted in most of our historical references.
Now a day’s floriculture is one of the commercial businesses which
not only provides a handsome profit but also provides ample employment
opportunity. In order to encourage floriculture business both central and
state government has accorded export-oriented status. In India floriculture
is considered as an industrial activity comprises flower trade, production of
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nursery plants, potted plants, seed and bulb production. Flowers were
cultivated for aesthetic purposes as also for their fragrance, perfumes and
medicines. Changing life style of people has led to the commercialization of
flower cultivation. The huge demand for flowers coinciding with various
occasions has led to growth of market for flowers. Though, India has
controlled climatic condition for floriculture states like Maharashtra,
Karnataka, Andhra Pradesh, West Bengal is leading state on flower
production. Hence floriculture business is one of the profitable
entrepreneurial opportunities of our country.
2. WORLD FLORICULTURE MARKET
Floriculture as an industry began in the late 1800s in England, where
flowers were grown on a large scale on the vast estates (Wikipedia, 2009).
The industry continues to advance since that period. It is a profitable agri-
business throughout the world. The present day floriculture industry is very
dynamic and fast growing. In the 1950s, the global flower trade was less
than US $3 billion (The flower expert, 2008). It has been reported that the
world production of floriculture products was valued at US $40 billion (Getu,
2009). The Netherlands, Japan, and United States of America (USA) account
for nearly half of the world flower trade. In the 1990s, a niche market was
developing for field-grown cut flowers, perhaps because many specialty
cut flowers can be field-grown (Armitage and Laushman, 2003; Starman
et al., 1995). The increasing interest in the production of specialty, field-
grown cut flowers (Kelly, 1991) and their developing market (Starman et
al., 1995) helped create the new niche for U.S. growers. Niches are
specialized markets. Starman et al. (1995) identified specialty cut flower
species that can be field-grown and profitable, provided a niche market
exists. Floriculture is a lucrative industry in many parts of the world. The
advancement of scientific techniques in flower cultivation has given a
tremendous impetus to the growth of this industry. India has yet to cash-in
on the production, marketing and export potentials in this field. Both domestic
market and export potentials are prodigious. Floriculture sector, all over the
world is experiencing rapid changes. Growing of flowers and ornamental
crops is rapidly expanding dynamic global enterprise in to-day’s world
(Bhattacharjee, 2006).
Floriculture, a $40 billion global business, is engaged in the struggle
to transform something “natural and unspoiled” into a mass produced,
transportable product, says Amy Stewart, bestselling author of Flower
Confidential: The Good, the Bad, and the Beautiful in the Business of
Flowers. This transformation relies on an extensive network of breeders,
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field workers, auction houses, sales representatives, shippers, and florists

to offer consumers a variety of choices well beyond those found in backyard
gardens. Flower growers don’t wait for nature to introduce the genetic
mutation that will make them millionaires; in the lab, they painstakingly
cross-pollinate promising varieties to develop new plants with marketable
characteristics, creating hundreds of new varieties every year.
3. PRODUCTION AND CONSUMPTION
Globally more than 145 countries are involved in floriculture industry
and the global floriculture trade is estimated to be at US$ 70 billion at
present (ICAR Vision, 2050). According to The International Association
of Horticultural Producers (AIPH, 2010), 702,383 ha area was under flower
production in different countries of the world, of which the total area in
Europe was 48,705 ha, North America was 21,067 ha, Asia was 523,829
ha, the middle East was 4,026, Africa was 7,604 ha, North America was
21,067 and Central and South America was 97,152 ha. According to Indian
Horticulture Database, India occupied a floriculture area of 183,000 ha,
which was 26% of the global area. The global floriculture industry is
experiencing rapid changes due to globalization and its effect on financial
development in the different regions of the world. At the same time,
competition is increasing worldwide. The Netherlands, USA, Columbia,
Japan and Italy are well known as traditional growers of flowers. Some
Asian countries like India, China, Bangladesh, Thailand, Vietnam, etc., are
also steadily improving horticultural production. Also in Latin America and
Africa, production is increasing very rapidly. Major flower consuming
countries in the world concentrate in the Western Europe and North
America. Germany, USA, UK, the Netherlands, France and Switzerland
together consume around 80 percent of the total flower production (Global
Horticulture, 2014 -2018). Of the world’s ten largest domestic markets for
cut flowers, six are in Europe, namely Germany, the UK, France, Italy, the
Netherlands and Spain. Other important markets are the US and Japan,
accounting for around 20 percent each. Recently, Russia and the Middle
East have also become important markets demonstrating rapid market
growth. In the earlier years, Netherlands (Euro 3901 million), the United
States (Euro 2992 million), Japan (Euro 2987 million), Italy (Euro 1627
million), Germany (Euro 1289 million) and Canada (Euro 1067 million) are
the largest producers of cut flowers and plants. However, due to stagnation
in production in these traditionally recognized centers, developing countries
have emerged as large production centers in the past few decades. This is
further supported by low production cost and seasonal advantages in the
developing countries, which ensures supply of floriculture products
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throughout the year. Some of the major developing country producers and
exporters of cut flowers and plants are Colombia, South Korea, Kenya,
Israel, Ecuador, Poland, Ethiopia, Costa Rica, Thailand, India, China,
Zimbabwe, and Mexico. The economies of some of these countries are
even dependent on floriculture industry, such as Colombia and Kenya,
China (286,068 ha) and India (161,000 ha) having the majority of the world
acreage under cut flowers and plants production, the Asia-Pacific region
has the major share (75 percent) of the total world area under floriculture
production. Europe has a 10 percent share in the world area under
floriculture. The acreage under flower cultivation in Africa is very small
(1.5 percent). With around 2200 ha, Kenya is the largest producer of flowers
and plants in Africa, followed by South Africa and Zimbabwe both growing
over 1000 ha of flowers. Latin America has an 8 percent share in the world
area under floriculture, with Mexico having the largest area under flower
production (21,129 ha).
4. GLOBAL PROFILE OF FLOWER PRODUCTION AND
EXPORT POTENTIAL
It is seen that the Netherlands is the world leader. Total world
export of floriculture products stands at USD 9,784,525,000 and Netherlands
claims 47.7% of total world exports. The other major countries are
Colombia, Ecuador, Kenya, Ethiopia and Belgium. India is in 14 position in
exporting floricultural products (Fig-1). In the year, 2007, worldwide export
value of cut flowers and foliage amounted to US$ 8.41 billion. Europe still
maintains its position as the leading exporter in the world with a share of
over 60 percent of total exports of cut flowers and foliage. However,
European exports of cut flowers and foliage (US$ 5.06 billion) are largely
intra-European in nature with only about 11 percent exported to other non-
European countries. The share of non-European countries in the worldwide
export value of cut flowers was about 25 percent in 1994, which has gone
up to around 30 percent in 2007. Re-exports are very common from some
of the leading European exporting countries such as the Netherlands and
Italy. The world exports of live plants, bulbs and cuttings are estimated to
be about US$ 8.58 billion in 2007. This is more than the three times the
value of flowers exported in 1994 (US$ 2.8 billion). As in the case of cut
flowers, Europe is the leading exporter of live plants, bulbs and cuttings,
supplying predominantly to the European countries.
During the year 2003-2007, The Netherlands was the largest cut
flower producer in Europe. The production value of flowers and pot plants
in the Netherlands increased by 10 percent annually, amounting to Euro
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3,901 million in 2007. In USA, the total production area under floriculture
crops declined by 2.5 percent in 2007 compared to 2006. The flower industry
in the United States is undergoing a period of consolidation. The large
operations account for 96 percent of the total value of floriculture crops.
Annuals and perennials are the largest selling items accounting for 32 percent
of the total floricultural sales in 2007. The wholesale value of sales of
floricultural products in 2007 was estimated at US$ 3.9 billion, registering
an increase of 2 percent over the year 2006. In Canada, the area under
cultivation increased by 10 percent over the five years between 2001 to
2006. Total number of operations, both farms and nurseries, declined to 11
percent and 16 percent respectively between 1981 to 2006. The flower
industry in Canada is generally concentrated in Ontario, British Columbia,
and Quebec, which together account for about 85 percent of total production.
Japan is one of the largest flower growing countries in the world. Around
47 percent of land area under flower cultivation is currently, under protected
cultivation such us greenhouses and covered structures. Chrysanthemums
are the most important flowers cultivated in Japan. Japan is one of the
largest consumers of cut flowers and potted plants. Japanese cut flower
retail market is estimated to be worth US$ 9.3 billion. Japan is the tenth
largest flower importer in the world. Only 7 percent of the cut flower
consumption in volume terms is imported by Japan. The country Ecuador
has around 3,500 ha under floriculture, of which, 2,500 ha is under rose
cultivation. Other flowers grown in Ecuador are Chrysanthemum and
Carnation. The sector employs around 60,000 people directly and over
100,000 people indirectly. Israel’s cut-flower industry is regarded as one of
the most advanced flower industries in the world by virtue of the technologies
used in production of large varieties of flowers in the desert-like conditions.
Flowers and ornamental plants account for 8.0 percent of Israel’s total
agricultural production. Israel’s flower sector is relatively small by
international standards, but is highly profitable. Flowers are Israel’s leading
agricultural export item (29 percent). Israel ranked 12th amongst world
exporters of floriculture products and its share in world exports was around
1.5 percent (US$ 259 million) in 2007. In Kenya, the flower industry employs
around 100,000 people directly and around 2 million people indirectly. Kenya
is currently, the world’s seventh largest exporters of flowers accounting for
2.6 percent share in world exports. Kenya has the largest market share in
European flower imports (51 percent) compared to other Sub Saharan
African country exporters. The Ethiopian flower industry took-off in 2005,
and currently, ranks 22nd amongst world exporters of floriculture products,
with a share in world exports of around 0.51 percent. There are over 70
flower farms in Ethiopia. Ethiopia grows Roses, Carnations, Chrysanthemum
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and Statice. The sector generated employment for over 50,000 persons
(permanent and temporary), and has become one of top five foreign
exchange earning products of the country. In Ethiopia, about 40 percent of
the farms are fully foreign owned, 23 percent are joint ventures, and 36
percent are fully domestic owned. China’s ornamental plants growing area
was only about 3,000 ha in 1985; which has currently crossed over 700,000
ha. In 2007, China ranked 17th amongst world exporters of floriculture
products with a share in world exports of around 0.76 percent. It is the third
largest supplier of floriculture products to Japan. Thailand covers about
6,000 acres, mainly in Bangkok and nearby provinces, namely Nakhon
Pathom, Samut Sakhon, Ratchaburi, Pathum Thani, Ayutthaya, Suphan Buri,
and Chon Buri. The flowering season in Thailand usually takes place during
the rainy season, from July to October. There are more than 1,000 species
of Orchids in the country.Besides Orchids; over 30 types of flowers are
commercially cultivated in the country, which include Roses, Carnations
and Chrysanthemums.
5. INDIAN SCENARIO
India’s, commercial floriculture has gained momentum in the 1990’s.
The development of Indian commercial floriculture has centered around
the production of rose, marigold, gerbera, chrysanthemum, gladiolous,
anthurium, carnation, orchid, tuberose, lilium, alstroemeria etc. In India,the
area under flower cultivation has more than doubled from 53,000 hectares
(1993-94) to 1,61,000 hectares ( 2007- 08) and has been growing at a
CAGR of 8. 26 per cent. Out of which, 500 ha of production is in greenhouse;
around 5 percent of greenhouse production is domestically consumed and
the remainder is exported. In 2007-08, flower production in the country
was estimated at 870,000 MT of loose flowers and 4,342 million (numbers)
of cut flowers. It is seen that the growth rate has drastically changed during
the year 1995-96, 2003-04, 2011-12 and it is decreased in the year 2012-
2013 and again increased in 2013-14 (Fig-2). Indian floricultural products
have been attaining to the world floriculture trade by increasing the
productivity. The Agricultural and Processed Food Products Export
Development Authority (APEDA) manages for developing and promoting
agri-exports including flowers. India’s exports of floricultural products in
the year 2007-08 decreased by 48 percent to US$84.5 million (Rs. 340
crores), from US$ 144 million (Rs. 653 crores) in 2006-07, which further
decreased by 5.18 percent in the year 2008-09 to US$ 80.31 million.
However, in rupee terms there was a marginal increase of 8.4 percent
from Rs. 340 crores in 2007-08 to Rs. 368.8 crores in 2008-09. It is also
observed that from 2006-07 production quantity as well as value slowly
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decreases up to 2009-10. It is evident from the (Fig -3) that there is a

gradual rise of
flowers production in the following years. Loose flowers production almost
keeps uniformity in its incremental rateFrom the graph, it is clear that the
cultivation of cut flowers is in the process of accelerating the floriculture
development in India. Since at present cut flowers are highly demanding
particularly for export purpose and India has been shifting from traditional
flowers to cut flowers production . In the time periods 2009-10 to 2014-15
though the quantity of the total exported products varies slightly, export
value has significantly increased. It has happened due to the increasing
trend of global market price. Thus, India has an opportunity to increase the
export potential by increasing the productivity of commercial flower (Fig-
4).The country’s share in the world trade of fresh flowers is 0.40 per cent
to 0.50 per cent as compared to Netherlands 65 per cent, Columbia 12 per
cent, Italy 6 per cent, Israel 4per cent, Kenya 1 per cent and other countries
20 per cent. Recently, It is observed that the export to the different countries
is quite uneven. In the year 2014-15 the floricultural products have been
exported to 105 countries, of which 86.3% are exported to the 18 countries
shown in the figure. It is clearly seen that the biggest export market is the
USA importing 5490 MT quantity by 98.13 crores. The USA imports 23.9%
of the total exported quantity followed by UK, Germany, the Netherlands,
UAE, Canada, Japan, Australia, Italy and Singapore. These ten countries
together import more than 70% of the total exported quantity. The
Netherlands, which is known as the leading exporter in the world trade of
flowers, also imports a large amount of floricultural products from India
(Fig-5).The area under floriculture although high compared to many
countries, the area under protected cultivation is low compared to these
countries. The proportion of area under protected to total area floricultural
area is 99 per cent in Colombia, 70 per cent in Netherlands and 57.51 per
cent Italy and in India it is 0.56 per cent. The investments in this sector and
per capita consumption of flowers are also considerably low when compared
to other developed countries like Western Europe, Japan and USA. In other
words, the vast potential in the country does not seem to be fully tapped.
140

Fig- 1: World’s leading cut flowers and buds exporting countries Source: ITC
Trade Map- International Trade Statistics, 2014

Fig- 2: Area under floriculture (ha) in India from 1993-94 to 2013-14

Source: Indian Horticulture Database, 2008 and 2014

Fig- 3: Yearly production quantity of important Indian loose flowers (MT) and cut
flowers (Million nos) Source: Indian Horticulture Database, 2008 and 2014
 141

Fig-4: Export of the floricultural products from India in quantity (MT) and value
(Crores)
Source: APEDA 2000-01 to 2014-15

Fig- 5: Floricultural products export from India to major importing countries by

quantity (MT) and value (Crores)

6. CONSUMPTION OF FLOWERS IN DIFFERENT COUNTRIES

Europe (Germany, UK, France and Italy), USA and Japan are the
major consumers of floriculture products. Flower consumption in the United
States is relatively low as compared to Western Europe; however, the
industry has been consistently growing. The consumption in the developed
markets in the Europe and Japan has been showing stagnancy or declining
trends, in the recent years. In case of cut flowers, per capita consumption
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in Japan is the highest, followed by Europe and USA. The European Union
(EU) consumes over 50 percent of the world’s flowers, and includes many
countries, which have a relatively high per capita consumption of cut flowers.
Germany is the major consumer, followed by the UK, France and Italy, in
the order of importance (Fig- 6). In 2006, per capita consumption of
floricultural products was highest in Switzerland followed by Norway,
Denmark, The Netherlands, Sweden, Germany and Austria. Currently, the
per capita expenditure in East European countries on flowers and plants
amounts to approximately Euro 7 to Euro 8 per person per year. Flowers in
EU are sold mostly in auctions at the Netherlands and also some through
direct sales. The Netherlands auctions are generally considered as indicator
for the best sold cut flower species in the EU. Rosa is the most important
cut flower traded at the Netherlands auctions, followed by Dendranthema,
Tulipa, Lilium and Gerbera.

Fig- 6: World’s leading cut flowers and buds importing countries

Source: ITC Trade Map- International Trade Statistics, 2014

7. Global leaders in cut flower exports (Top ten countries)

Netherlands continues to be the largest exporter of cut flowers in
the world market, having a 52% share of the global market for cut flowers
today. Columbia occupies 15% of the global market share in the cut flower
export sector, generating revenue of around $1 billion dollar. Eucador
occupying a 9% share of the global market in terms of cut flower export
values. 7% of the global market share of cut flowers is held by the Kenyan
 143

cut flower industry. Belgium is also cut flower producers in the world,
holding 3% of the total global market share for cut flower exports. Ethiopia
holds a 2% share in the global flower export market and it is predicted that
by the end of 2016 the country will be earning $550 million from annual
exports of cut flowers. Malaysian cut flower exports account for 1% of the
global market share of these products. 1% of the global market share of
cut flowers today is held by Italy. Germany occupying 1% of the global
market share in flower export and Israel is holding a 1% share of the global
market in terms of cut flower exports (Fig. 7).

Fig- 7: World’s largest cut flower export countries, 2005 vs. 2015
Sources: UN-Comtrade, Royal FloraHolland, Rabobank, 2016

8. FLOWER PRODUCTS FOR HIGHER ECONOMIC VALUE:

8.1 Dehydration of flowers and foliage and floral craft
Dehydration technology can also be exploited for dehydration of
promising colourful cut flowers in its original colour and shape for long term
enjoyment and for commercial utilization of unutilized/underutilized plant
species. Dry flowers that are near natural, dried and preserved, have an
everlasting value that can be cherished for longer periods and require little
care. Dry flower market has grown exponentially as consumers become
“eco-conscious” and choose dried flowers as the environmentally friendly
and biodegradable alternative to fresh flowers. There is large potential to
develop the dry flower industry in every country and to provide employment
to house wives and rural women.
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Methods of dehydration
Press Drying : The flowers and foliage are kept in blotting sheet/news
paper and pressed dried with the help of “Plant Press”. The plant press
has been specially designed in a very simple way. The plant press is made
up of two wooden board fixed with nuts and bolts at four corners. The size
of plant press may vary (6" X 12" to any desired size). Collected leaves and
flowers are kept between blotting sheets and one type of leaves/flowers
are always pressed in one sheet. All blotting sheets containing leaves/flowers
are kept between two ply boards and tightened with nut and bolt. The
materials may be kept at room temperature for dehydration. Blotting sheets
are changed every 3rd and 5th day to avoid fungal effect/ contamination.
This helps maintenance of original colour of flowers and leaves. For quick
drying, the pressed materials may be kept in hot air oven at 60o C.
Embedding and Drying: Flowers are embedded either in sand or in silica
gel in earthen/plastic/tin/glass pots and pots are kept for dehydration in hot
air oven / micro wave oven / solar cooker. The hot air oven is thermostatically
controlled.
Hot air oven : In hot air oven, the temperature is maintained 40 – 450C.
Microwave oven: Flowers are dehydrated within 5 – 10 minutes. Pots
after taking out from micro wave oven are kept for two hours at room
temperature for setting
Solar Cooker : Flowers can be directly embedded in the container of
solar cooker and it can be dried under sun. The time of exposure vary
according to day temperature. The solar cooker can also be operated
electrically. Solar cooker will be most suitable for rural women. They can
cook their food in solar cooker and rest of the time can utilize for dehydration
work.
Suitable methods of drying and dehydration of flowers and foliage
plants
Press drying: Candytuft, Chrysanthemum, Euogirua keyciceogakam,
Lantana, Ixora, Mussaenda, Galphimia nitida, Pentas carnea, Grasses,
Foliage of cassica biflora, Golden fern, Silver fern etc.
Hot Air Oven drying : Helpterum roseum, chrysanthemum, Candytuft,
Gerbera, Gomphrena globosa, Helochrysum bracteatum, Euphorbia,
leucocephala, Delphinium ajacis, Rose, Zinnai linearis, Bougainvillea,
Narcissus, Dahlia, Gladiolus, Tagetes petula, Tagetes erecta, Nymphaea
sp.
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Different flowers take different time to dehydrate in hot air oven

like Acroclinum, Aster, Bougainvillea, Candytuft, Marigold (small), Zinnia
linearis - 48 hours; Ixora – 36 hours; Chrysanthemum(small flower) – 45-
48 hours; Dahlia (pompon), Marigold (large), Narcissus, Zinnia liliput – 72
hours; Nymphea – 120 hours.
Microwave oven drying: Antirrhinum majus, Callistephus chinensis,
Chrysanthemum, Gerbera, Gladiolus, Legestroemia indica, Narcissus sp.,
Delphinium ajacis, Helichrysum bracteatum, Phlox, helipterum roseum,
Ixora coccinea, Nymphaea sp
A quantitative estimation has also been done i.e. fresh flowers
approx. 8,000 of Acroclinum, 2,600 of Helichrysum, 2,700 of Aster, 350 of
Rose, 800 of Marigold large, 550 of Dahlia, 1,17,500 of Ixora and 16,000 of
Annual Chrysanthemum are required for preparation of one Kg. of dry
flowers.
Techno-economics
Hot air oven is easily available in the market or it can be fabricated of any
desired size. The price varies from Rs. 5,000/- to Rs. 40,000/-. Micro wave
oven costs from Rs. 6,000/ to Rs. 20,000/ and the price of Solar Cooker
varies from Rs. 2500/- to Rs. 3,500/-. Therefore, initial capital cost for
starting dry flower business is not high. For press drying approx. Rs. 2000/
- and for Hot Air Oven drying Rs. 10,000/- (along with other raw materials)
initial investment required to start dry flower business. (Datta, 2011)
Production Cost and profit margin : Rs. 4,250/- are the production cost
for 1600 Greeting Cards (9 x 25 cm size) and profit is Rs.3,744/-. Similarly
for production of 100 pieces of three dimensional floral arrangements in
sealed glass containers Rs. 3,515/- are the production cost and the profit is
Rs. 2,485/-. (Datta, 2011)
8.2 Essential oils
Essential oils are a concentrated hydrophobic liquid containing
volatile aroma compounds from plants. Essential oils are also known as
volatile oils, ethereal oils or aetherolea, or simply as the “oil of the plant”
from which they were extracted. Oil is “essential” in the sense that it
carries a distinctive scent, or essence, of the plant and is therefore used in
food flavouring, perfumery and therapeutically in aromatherapy.
Scenario of essential oils
Global: Estimated world production of perfume oils, for all applications
146

taken together is about 250,000 tons. The global export of these oils, perfumes
and flavours increased from US $ 2149 million in 1986 to US $ 8254 million
during 2002. Imports recorded an increase from US $ 2008 to US $ 5316
during the same period. On the production side, the total worldwide
production of essential oils is estimated at about 1,00,000 to 1,10,000 tonnes.
The production of geranium essential oil alone is estimated to be nearly 400
tonnes per annum, with a value of US $ 20-30 million. The world’s largest
importer of aromatic materials is the USA followed by Japan (Verma et al.,
2012).
Indian: India ranks 26th in import &14th in respect of export in world in
the trade of essential oil. India holds around 0.7% of import & 1.1% of
export. Jasmine and tuberose concentrate from South India have created a
marks in world marked. The major buyers of Indian essential oil are Former
USSR, USA, France, UK, Netherlands, UAE and Saudi Arabia. Growth in
perfumery is higher i.e., 15% in India compared to 7% in America and 5%
in Europe (Verma et al., 2012).
Opportunities in the essential oil industry:
Manufacture of perfumes, creams, aftershave lotions, soaps,
detergents, agarbattis, incense, shampoos, bath oils, hair oils, talcum powder
and other cosmeceuticals. Flavouring all types of food products like candies,
beverages, tobacco, soups, chewing gum, sauces, desserts, cake mixes,
etc. As therapeutics, antiseptics, bactericides or germicides and are also
used in making balms, tooth pastes, mouth washes, antiperspirants,
deodorants, insecticides and aerosols. For protecting fur, wool, silk clothing
and for making shoe polish, and also as solvents in the paint and varnish
industry. Manufacture of paper, plastics, textiles, paints as well as synthetic
odour and flavours.
Aromatherapy: It is a form of alternative medicine that uses volatile plant
materials, known as essential oils, and other aromatic compounds for the
purpose of altering a person’s mind, mood, cognitive function or health.
Different oil extraction methods for flowers
There are six methods of extracting essential oil from flowers;
i. Distillation:There are three types of distillation used: Water or Hydro
distillation; Water and steam or wet steam distillation; and Direct steam or
dry steam distillation.
ii. Enfleurage: This process is useful to extract delicate floral scents from
flowers that produce essential oils even after being picked (for example;
 147

jasmine, tuberose, violets, etc.) or where the oil is affected by higher

temperatures.
iii. Maceration: In this method, successive batches of chopped plant
materials are digested with hot oil at 45-80o C for several hours. The filtrate
is heated with successive batches of fresh flowers up to 20 times.
iv. Solvent extraction: When oil with natural flavor is required, direct
extraction with solvents such as petroleum ether or benzene is practiced.
v. Mechanical expression: In this process, the fruits are compressed or
squeezed in claw-shaped bowls where juice is sucked out of the fruit through
a cannula inserted in the pulp, while the oil released from the oil released
from the oil cells is rinsed with water and then the two are separated by
centrifugation or the fruits are placed in a revolving vessel fitted with spikes
to release the oils.
vi. Adsorption: In this process, hot air or inert gas is passed over the
aromatic plant material which is then led through the activated carbon from
which the essential oils are recovered by solvents.
Flowers yielding essential oils:
Rosa sp oil: About 10 tonnes of rose oil is produced in the world out of
which Bulgaria produces more than 5 tonnes. India produces a very small
amount of rose oil, which does not exceed 10 kg. Important constituents of
rose oil are : 1citronellol (40-65%), nerol, gereniol, linalool, eugenol etc.
Recovery and Yield: In Bulgaria, Rosa damascene yielded 1 kg oil/4000 kg
of flowers, when extracted in industrial still. Rosa damascene yields 0.05%
oil, of highest quality which fetches highest price.
Jasminum sp oil: Next to rose, jasmine is the most important perfumery
raw material used since the beginning of human civilization. The word
‘jasmine’ is derived from Persian word ‘yasmyn’ meaning ‘fragrance’.
Jasmines are cultivated throughout our country in an area of 8000 ha. Egypt
is the largest producer (10-15 tonnes concrete/yr) followed by Morocco,
France, Algeria, Italy and India. Main constituents of jasmine concrete are
benzyl acetate, benzyl benzoate, geraniol, eugenol, benzaldehyde, indole,
nerol, methyl jasmonate etc. Jasminum auriculata also known as ‘Juhi’
has highest oil recovery (0.29%). Important varieties are Parimullai, CO-1
Mullai, CO-2 Mullai, Jasminum grandiflorum or ‘Chameli’ has best Quality
oil (0.25-0.30%). Other important varieties are JG 1, JG 2, JG 3, JG 4, JG
5, JG 6, CO1 Pitchi and CO2 Pitchi.
148

Polianthes tuberosa oil: About 30,000 kg loose flowers give 27.5 kg of

concrete and this concrete gives 5.50 kg absolute. Generally, 1 kg concrete
is obtained from 1150 kg of flowers. Oil is used on heavier types of scents
and also used in nonalcoholic beverages, ice cream, candy, baked goods
etc.
Lavandula angustifolia oil: The fragrant oils of its flowers are used in
aromatherapy, baked goods, candles, cosmetics, detergents, jellies, massage
oils, perfumes, powders, shampoo, soaps, and tea. Yield is 0.81% on steam
distillation. Known chemical constituents of volatile oil: linalyl acetate, linalool,
borneol.
Pandanus fascicularia oil: It is distributed in tropical areas and in India,
it is found growing in the coastal district of Orissa, Gujarat, Andhra Pradesh
and Tamil Nadu. Male inflorescence exhales odour and it is an economically
important part of the plant which is highly scented. Attar is used for
flavouring hair oils, soaps, bouquets, cosmetics, snuff and incense.
Tagetes sp oil: In India, four species T. erecta; T. patula; T. signata; T.
minuta have been naturalized for processing of essential oil. The plant and
essential oils have been found to be repellent to the common house fly,
Musca nebulo. The ethanolic extract of the entire herb showed antiviral
activity against Ranikhet disease virus. Volatile oil isolated from Tagetes
minutaexhibites Tranquillizing, Hypotensive, Spasmolytic, bronchodilatory
and anti inflammatory properties.
Achoruscalamus oil: Its essential oil is extracted from the roots by steam
distillation and has been used since ancient times as one of the ingredients
of the holy anointing oil. Traditionally, this herb was smoked, eaten, or brewed
into a tea, decoction, extract and syrup. The oil has the compound asarone
which has tranquilizing and antibiotic activity but is also potentially toxic
and can cause mild hallucinations. So it should be well diluted before use.
Other important essential oil-bearing ornamentals: The other
ornamental plant which are used as essential oils i.e. Michelia champaca,
Narcissus, Magnolia sp., Cestrum nocturnum, Gardenia jasminoides,Iris
sp.,Dianthus caryophyllus, Michelia champaca
Essential oils as therapeutics:
Shunying et al., (2005) evaluated the antimicrobial activity of essential
oils from air-dried and processed flowers of Chrysanthemum indicum and
found out that the oil of the processed flowers with higher percentage of
camphor, exhibited greater bacteriostatic activity. Adamczak et al., (2011)
 149

determined the variability in the content of oil and main fatty acids in hips of
all native rose species of section Caninae. Katsukawaet al., (2011) identified
geraniol and citronellol, the major chemical components of rose oil, as
suppressors of COX-2 expression and activators of PPAR and this may
be important in understanding the anti-inflammatory and antilifestyle-related
disease properties of these chemicals.
Essential oils as food preservatives
Lodhia et al., (2009) tested the anti-bacterial activities of essential
oils extracted from flower petals of palmarosa, evening primrose, lavender
and tuberose against gram-positive and gram-negative bacteria. Palmarosa
oil showed the highest activity against both bacteria among the tested
essential oils.
9. FUTURE PROSPECTS OF FLORICULTURE IN INDIA
Today, a significant growth in Indian floriculture is observed and a
significant increase in acceptability of Indian flowers in the global market is
perceived. Indian floriculture is slowly progressing towards becoming globally
competitive with the new global trade rules under the WTO regime. The
growing urbanization and changing lifestyles have given a boost to the per
capita consumption of flowers and plants and as a result flower retail shops
and boutiques have mushroomed all over the cities and towns. Thus, Flora
Industry in India is shining and holding great promise with immense
investments and employment opportunities along with several challenges.
Here, pockets in Maharashtra, West Bengal, South Gujarat, are fast
approaching towards becoming ‘A hub of Floriculture’ in near future and
soon may become a candle of inspiration for the entire India. Also, a large
number of export-oriented units have created facilities of precooling
chambers, cold stores and reefer vans and their produce coming for
domestic market sales are also, thus, of good quality and have longer vase
life, and fetch higher price. Further, research based on postharvest and
transportation problems observed in cut flower trade need to be focused
and innovative approach and ideas among growers need to be encouraged.
Efforts are needed to popularize cut flower use among the high income
group in the country and indigenous flowers outside the country. Further,
nursery industry need to be given boost and should be considered as a
major component of floriculture as it is being excluded so far. In view of the
unorganized set up, it is difficult to estimate the size of flower trade, both in
terms of volume and value. Realizing the importance of floriculture’s
contribution to national agricultural economy, the Government of India has
introduced many developmental programmes through the schemes of
150

Ministry of Agriculture implemented under (National Horticulture Board),

National Horticulture Mission, Ministry of Commerce and Industry,
implemented by (APEDA) and Technology Mission for North Eastern
States. All these have generated ample scope for the industry to expand in
domestic and global sales. Today, flowers have become an integral part of
ceremonies, they are yet to enter our homes and offices on regular basis
and to explore at industrial level. There is a need to promote and explore
the flower trade in addition with the other value addition techniques including
pot plant trade along with infrastructural support and market intelligence
study as major steps for strengthening the flower trade in India. Thus,
potential for flower industry in India, including production for domestic and
export sales of flowers and plants is unlimited, provided the challenges are
converted into opportunities through strategic planning, creating awareness,
infrastructural development and collaborative and cooperative approach.
10. CHALLENGES OF FLORICULTURE IN INDIA
As there is ample opportunity for flower cultivation in the state but
its commercialization is a recent development by the horticulture
department. The problems in this area are mentioned below.
10.1 Lack of infrastructural facility:-
Despite increasing demand of flowers day by day in the India, one
of the major drawbacks is a requisite infrastructural facility. The scope of
infrastructure like flower mandi , cold storage, facility of an auction sale,
are some of the requirement which is not available plentily in the state for
development of floriculture.
10.2 Poor scientific knowledge:-
The traditional practice of plantation of the flower is one of the
major problems for the farmers of the India. The farmers should be provided
update scientific method of the plantation of the flower so that the flower
production will increase both in quality and quantity.
10.3 Post harvesting situation:-
Marketing is one of the most important problem for floriculture
business. Due to poor post harvesting situation in India there is no enough
scope for marketing of flowers. At the time of harvesting, the farmers have
to either depend on traditional sale or they have to depend on govt. agency
to get the right price of the product. There is no formal agency either in
govt. sector or in the private sector for selling of the product after harvesting.
 151

10.4 Middle man exploitation: -

This is another problem which poses a serious challenge for the
entrepreneurs of the flower. Most of the farmers fall into the trap of middle
man as they have no idea or knowledge regarding the demand and the right
price of the flower. In such a situation the middle man gets the opportunity
to exploit the genuine farmer of the flower.
10.5 Inadequate institutional support:-
One of the major problem in floriculture business in the India is a
lack of adequate financial support by the banks and other sources. The
Govt/ Institutions/ Universities should ensure the supply of qualitative seed,
proper marketing facility storage of flower during production season is some
the support in order to promote floriculture in the state.
REFERENCES
Armitage, A.M. and Laushman, J. M. (2003) Helianthus annuus L.Annual Sunflower. In:
Specialty Cut Flowers. The production of annuals, perennials, bulbs, and woody
plants for fresh and dried cut flowers.2nd ed. Timber Press. Portland, P 319- 330
Bhattacharjee, S.K. (2006) Vistas in floriculture, pp, 355
Datta, S.K. and Roy, S. (2011) Employment generation using dehydration technology for
drying flowers and foliage and floral craft. Sci. & Cult. 77 (1–2) 58–61
Flower Council of Holland (2008). Facts and figures. http://www. flowercouncil.org/us/
marketinformation/(Accessed 14th June 2009).
Getu M (2009). Ethiopia floriculture and its impa ct on the environment. Regulations,
Supervision and Compliance. Mizan Law Rev. 3(2): 242
Kadoglidou, K.; Lagopodi A.; Karamanoli, K.; Vokou, D.; Bardas, G.A.; Menexes, G.;
Helen, I.A. and Constantinidou (2011). Inhibitory and stimulatory effects of
essential oils and individual monoterpenoids on growth and sporulation of four
soil-borne fungal isolates of Aspergillus terreus, Fusarium oxysporum, Penicillium
expansum, and Verticillium dahliaeEur. J. Plant Pathol., 130: 297-309.
Kelly, J.W. (1991). Field production of cut flowers. Hort Science 26:1136–1138
Misra, D. and Ghosh, S. (2016). Growth and export status of Indian floriculture: A review.
Agricultural Reviews, 37 (1): 77-80
Prajapati, P., Singh, A.and Jadav, P.B. (2016).Value addition in floriculture through essential
oils. International Journal of Information Research and Review, 3(9): 2795-2799
Shunying, Z.; Yang, Y.; Huaidong, Y.; Yue, Y. and Goulin Z. (2005). Chemical composition
and antimicrobial activity of the essential oils of Chrysanthemum indicum.
Ethanopharmacology. 96: 151-158
Sing, A. and Ahlawat, T.R. (2014). Floriculture as an upcoming industry in india: present
scenario and future prospects. Indian Farmer 1(1): 28-32
152

Starman TW, Cerny TA, Mac Kenzie A J. (1995). Productivity and profitability of some
field-grown specialty cut flowers. Hort Sci, 30(6):1217- 1220.
The Flower expert (2008). Looking to flowers to a special someoneÿ2711 enterville red
120, 2711.W ilmington. DE .www. the flower expert.com/flower.news..(Accessed
13th July, 2009
Verma, A.K.; Gupta, A.; Kumar, D. and Dhiman, M. (2012). Post Harvest Technologies
for Commercial Floriculture. New India Publishing.
Wikipedia (2009). Floral Industry.http://en.wikipedia.org/wiki/ Floral_industry. (Accessed
2nd June, 2010)
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Chapter
11
AGRI-ENTREPRENEURSHIP
DEVELOPMENT THROUGH BOVINES
Varij Nayan and Anuradha Bhardwaj

1. INTRODUCTION
Agriculture has been the mother of humanity. Agriculture including
the animal agriculture has shaped the landscape of various civilizations for
thousands of years and the world as we see it today, is unimaginable without
it. In India, animal husbandry is not only complementary to agriculture but
also plays an important role in its economy by providing livelihood to
unemployed and rural youth and women. Agriculture and animal husbandry
can be heralded as an opportunity for “cultivated thought”. No doubt, there
has been a significant revolutionary development in small farm management
in respect of all the sub-sectors, i.e., crops, animal husbandry and fisheries.
This process needed to be encouraged to provide ‘the power of mass
production to production done by the mass of small farmers’. The challenges
that India’s agriculture faces in the coming years are also enormous. In
fact, the agricultural setting has also transformed considerably in modern
era and a second green revolution is needed in the ignored and lesser
privileged parts of our country with radical and novel measures and
technologies. The economic scenario in India is also undergoing a sea-
change, with Indian economy slated to remain as the top three world
economies by 2050 (Chateau et al., 2011; Hawksworth and Chan, 2013,
Nayan, 2015).
In this context, it is important to realize that livestock sector is
contributing more than 4 percent of the total Indian GDP since last three
decades and is well set for bigger roles with inputs of right policy initiatives.
The percentage contribution of agriculture in total gross value added (GVA
154

at constant prices-2011-12) is 9.3% (for 2015-16), whereas it is 4% to total

GVA (for 2015-16) (Fig. 1). It clearly implies that the livestock sector is
expanding much faster than any other agricultural sector. It will not be
surprising if the livestock sector produces more than half of the total
agricultural output in coming decade. This gigantic contribution of livestock
sector can be largely owed to the bovines especially the domestic cattle
and the river buffaloes.

Figure 1: Recent trends in livestock sector’s contribution to the agriculture

sector of India

The contributions by other members of bovidae family are lesser

though. The species-wise percentage contribution towards total milk-
production during the period of 2016-2017 is exhibited in the Fig. 2. Similarly,
Figure 3 depicts the all-India average milk productivity (Kg/day) of the
popular bovines.

Figure 2: Contribution by different bovines and bovidae in the total milk-pool

(2016-17) of India
 155

Figure 3: The all-India average milk productivity (Kg/day) (Y-axis) of popular

bovines over time (X-axis)

2. TYPES OF PROMINENT BOVINES IN INDIA

The Bovidae are the biological family of cloven-hoofed, ruminant
mammals that includes bison, African buffalo, water buffalo, antelopes,
wildebeest, impala, gazelles, sheep, goats, muskoxen, and domestic cattle.
A member of this family is called a bovid. With 143 extant species and 300
known extinct species, the family Bovidae consists of eight major subfamilies
apart from the disputed Peleinae and Pantholopinae. The family evolved 20
million years ago, in the early Miocene. The biological subfamily Bovinae
includes a diverse group of 10 genera of medium to large-sized ungulates,
including domestic cattle, bison, African buffalo, the water buffalo, the yak,
and the four-horned and spiral-horned antelopes. The general characteristics
include cloven hoofs and usually at least one of the sexes of a species
having true horns. The largest extant bovine is the gaur. In India, cattle and
buffalo are prominently reared as livestock and the cow is considered sacred.
2.1 The Cattle
India is endowed with large cattle population which constitutes an
integral part of majority of the livelihood of rural farmers since time
immemorial. The cattle is considered as one of the important livestock
species in the country, as it provides milk, draught, dung, hide etc. India
owns the largest cattle population of 190.90 million (19th livestock census)
which constitutes 37.28 per cent of the national livestock population and
13.00 per cent of world cattle population. The country has rich cattle genetic
diversity composed of 41 acknowledged breeds classified according to their
utility as draft (28), dual (9) and milch (4). The estimates of breed wise
cattle population revealed that the crossbred cattle constitute 20.81 per
156

cent while the non-descript and defined cattle breeds constitute the rest of
the population. Out of the 79.19 per cent, the non-descript cattle constitutes
nearly 74.90 per cent of the total indigenous population while the rest 25.10
per cent covers the defined indigenous cattle breeds. The cattle breeds viz.
Sahiwal, Gir, Red Sindhi, Tharparkar and Rathi, are known for their milking
prowess. The Kankrej, Ongole and Hariana, belong to dual breeds that
have both milch and draught qualities. The rest are pure draught breeds.
Each of the breeds of cattle are important and needs attention based on
their geo-climatic adaptation to a particular region. Though, the cattle
population has decreased by 4.1 per cent from year 2007 to the year 2012
as per the 19th livestock census, the cattle breeds of India are playing a
momentous role in meeting the national demand of milk and milk products
due to the consumer preference. There has also been renewed consumer
and academic interest in the sacred cow and the ancient ways and
relationship between the Bos indicus and the Homo sapiens.
2.2 The Buffalo
The domestic water buffalo (Bubalus bubalis) has an important
role in the agricultural economy of India and recognized as a triple purpose
animal providing milk, meat and draught power. It is also used in some
Mediterranean and Latin American countries as a source of milk and meat
for specialized markets. Buffaloes are now very important in India’s
contribution to milk and meat. Buffaloes are emerging as the “Black Gold”
or “Black Platinum” with great potential as the “Bank on Hooves” for
Indian agrarian community and entrepreneurs. India is a breeding tract
and home not only for the world famous Murrah and Nili-Ravi Buffaloes,
but also for other buffalo breeds such as Bhadawari, Jaffarabadi, Surti,
Pandharpuri and Mehsana, which are well known for their milk producing
ability. There are 13 registered breeds of buffaloes (Figure 4 and Table 1).
High productivity of Indian buffaloes is evident by their contribution to total
milk pool, which is about 10% more than that contributed by cattle.
Resultantly, India now occupies the pride position of being the highest milk
producing country in the world. About 56% of milk and 16% of meat
produced in India are from buffaloes. Owing to their multifaceted
contribution, buffaloes are increasingly becoming a preference among Indian
livestock entrepreneurs and farmers as indicated by a consistent increase
in buffalo population from 84.21 million in 1992 to 105.34 million in 2007
(Taneja, 2012). As per 19th livestock census, the buffalo population has
increased by 3.19 per cent in year 2012 from the year 2007. This particular
livestock species has immense potential for poverty alleviation and rural
entrepreneurship. It can be visualized with the fact that milch buffalo
 157

population increased from the period 2003-07 to 2007-12 by 46 per cent in

rural areas. The total milk production was about 165 million tonnes in 2016-
17, in which Buffaloes share was 49%. The domestic water buffalo, being
one of the most important livestock animals in India has an important role in
the agrarian economy and will continue to have a bigger role in future as
well.

Figure 4: The Recognized and registered breeds of buffaloes mapped to the

Indian map

Table 1: Recognized and registered breeds of buffalo

Sl. No. Registered Breed of Buffalo Home Tract
1. Bhadawari Uttar Pradesh and Madhya Pradesh
2. Jaffarabadi Gujrat
3. Marathwadi Maharashtra
4. Mehsana Gujarat
5. Murrah Haryana
6. Nagpuri Maharashtra
7. Nili Ravi Punjab
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8. Pandharpuri Maharashtra
9. Surti Gujarat
10. Toda Tamilnadu
11. Banni Gujarat
12. Chilika Odisha
13. Kalahandi Odisha

3. AGRI-ENTREPRENEURSHIP DEVELOPMENT THROUGH

THE BOVINES
The term “entrepreneur” is rooted in the French word,
“Entreprendre” which means,”to undertake”. The term was first used as a
technical economic term by the 18th century, French economist Richard
Cantillan. He portrayed an “entrepreneur” as one discharging the function
of direction and speculation. It was further stated that, “the entrepreneur
was a person endowed with the qualities of judgment, perseverance and a
knowledge of the worldas well as of business. An entrepreneur is traditionally
heralded as someone who produces for the market. An entrepreneur is a
determined and creative leader, always looking for opportunities to improve
and expand his business. An entrepreneur likes to take calculated risks, and
assumes responsibility for both profits and losses. An entrepreneur is
passionate about growing his business and is constantly looking for new
opportunities. They always look for better and more efficient and profitable
ways to do things. Being innovative is an important quality for a farmer-
entrepreneur, especially when the business faces strong competition or
operates in a rapidly changing environment.
The agri-entrepreneurs are the crucial elements for futuristic
innovations which are essentially required for a low-tech industry such as
the agriculture with limited dynamics dominated by numerous smallholder
families and firms. They could also be instrumental in our fast and growing
economy. The entrepreneurship development using bovines will be a key
driver for promoting & sustaining the momentum of growth. Governments,
Institutions and individuals have increasingly visualized entrepreneurship as
a strategic intervention for accelerating the pace of development in any
economy. Entrepreneurship development is essential for exploiting full
potential of dairy and food industry on one hand and providing job
opportunities to the teaming population of the country on the other. The
scope for wage employment is not only limited but decreasing very fast.
Even the nature of wage employment is undergoing drastic transformation
 159

from the security-oriented job to performance based contractual assignment.

Under such situation entrepreneurship development is a must.
Entrepreneurial development is a systematic and a controlled development
of a person to an entrepreneur. The development of an entrepreneur refers
to inculcate the entrepreneurial skills into a common person, providing the
desirable knowledge, getting higher the technical, financial, marketing and
managerial expertise, and building the entrepreneurial approach.
Entrepreneurial development programmes may be defined as a program
designed to help an individual in strengthening his entrepreneurial motive
and in acquiring skills and capabilities necessary for playing his
entrepreneurial role effectively. This situation can be changed by generating
employment opportunities for them in rural areas itself. Agro entrepreneurship
can be used as paramount medicine for the solution of this complexity.
Developing entrepreneurs through the bovines will solve the entire problem.
(a) Trim down the burden of agriculture (b) Create employment opportunities
for rural youth (c) Control migration from rural to urban areas (d) Increase
national income (e) Sustain industrial development in rural areas (f) Cut
down the pressure on urban cities etc. Moreover, the intended beneficiaries
include the farmers, individual entrepreneurs, NGOs, companies, groups of
organized and unorganized sectors, etc. Groups of organized sector include
Self-help Groups (SHGs), dairy cooperative societies, milk unions, milk
federations, etc.
3.1 Probable objectives for agri-entrepreneurship development
through the bovines
 Promotion of the setting up of modern dairy farms for production
of clean milk
 Encouraging heifer calf rearing, thereby conserving good breeding
stock
 Bringing structural changes in the unorganized sector so that initial
processing of milk can be taken up at the village level itself
 Up-gradation of the quality and traditional technology to handle
milk on a commercial scale
 Generation of self-employment and provide infrastructure mainly
for unorganized sector
3.2 What should be the the agri-entrepreneurial environment?
Being an entrepreneur is a way of life and a way of looking at the
world. Entrepreneurs enjoy independence and freedom. They decide for
160

themselves what to do and when to do it. Entrepreneurs also face risks,

work under pressure and are immediately accountable for the outcomes –
good or bad – of their decisions. While farmer-entrepreneurs are free and
independent, they do not work alone. They operate in a complex and
dynamic environment. They are part of a larger collection of people including
other farmers, suppliers, traders, transporters and processors, each of whom
has a role to play in the value chain (Figure 5).

Figure 5: An entrepreneurial cattle and buffalo farmer makes farming decisions

in a complex competitive and collaborative environment.

One should also understand that entrepreneurial environment is

very much dependent on the regional preference for the bovines being
utilized. The Figure 6 explains the latest population of buffaloes (in millions)
state-wise. It can be well-understood that the buffalo is pre-dominant in
states of Haryana, Punjab, Gujarat, UP and AP, where they contribute
between 54-85 percent to total milk. Therefore, for any farming decision,
the dairy entrepreneur has to balance his opinion in a dynamic, complex
and collaborative setting.
 161

Figure 6: The Buffalo population in states of their prominence in India

3.4 Setting the agri-entrepreneurship development process using

bovines:

Figure 7: The agri-entrepreneurship development process

3.3 Possible areas of agri-entrepreneurship development through

bovines
3.3.1 The milk and dairy products:
The dairy entrepreneur should be aware of “4 P” i.e. Procurement,
Production, Processing and Promotion. The procurement covers milk
collection from rural producers or contractors including setting up of chilling
centers, provision of laboratory equipment and supplies, milking machines,
162

cattle welfare, including feed and fodder and last but not the least the
transportation. Production includes activities of producing various types of
liquid milks like the conventional whole, toned and standardized as well as
innovative like milk with extra nutrition for children, pregnant mothers, the
aged and the infirm and low fat milk for the calories- conscious. The key is
to sale milk also as a fun product and not merely as something, which is
good for health. Processing of products such as butter and cheese spread,
pre-sliced butter and cheese, dairy whiteners, milk beverages (Plain and
Carbonated), butter oil as a cooking medium, whip-and-serve milk shake
powders, wet and dry kulfi and ice cream mix, high protein whey drinks for
sports man, milk sweets, Shrikhand, dried condensed milk, dried khoa and
many more can be added the list. The promotion covers activities like brand
promotion, setting up of dairy parlours, buying milk in bulk and repacking to
sell, distribution, devising attractive packaging and other such activities,
which will result in building an image either nationally or even regionally
and enhance the marketing of the products.
3.3.2 The meat, meat and livestock products:
Globally livestock products account one-fifth of global trade of
agricultural products, however, India does not have significant presence in
global livestock trade. It shares only 0.3% world exports and 0.4% imports.
In India, bovine meat has been a major export commodity with around 70
per cent share in the total livestock exports value. Also, its value share has
increased more than twice in 2016 than that in 2001. Buffalo meat export
has lion share. In addition to fetching 4 billion US $ foreign exchange,
employment intensive meat sector provides job to about 14.44 million people.
It also associates with development of sectors-such as leather sector
(increased quantity of quality hide); poultry sector (with supply of quality
protein and energy feed ingredients as meat and bone meal and tallow);
and a number of other sectors such as soap, textile, which utilize different
by-products. This sector also has great potential for agri-entrepreneurship
development.
3.3.3 Businesses related to bovine farming:
The dairy farming is not just about cows, buffaloes, their milk and
meat. There are several businesses related to dairy farming like selling
fodder, transportation of milk, processing, selling cow-comforts like rubber
mats and cubicles, selling medicines for the cattle and buffaloes, and the
most profitable one –breeding of cattle and buffaloes. The agri-entrepreneur
can breed the bovines and sell them when they start milking. Proper record
keeping of their milk production potential including those of their parents
 163

can also maximize the economic returns in terms of their selling prices.
Understanding the whole value chain of the dairy Industry can provide
great opportunities to the agri-entrepreneurs. The whole story can be
enriched with incorporation of different feeding regimes including selling of
green fodder, silage and area specific mineral mixture with the help of local
NGOs, universities and research institutes. There is severe derth of semen
availability too in most of the parts of our country. The agri-entrepreneurs
can utilize the vast potential available in the area of frozen semen production
by setting of their own semen station within the framework of extant rules
and regulations. Apart from this, the services rendered as trained artificial
inseminators are also the need of hour for livelihood generation and improved
conception rate in their own farms and nearby areas.
4. CONCLUSION
It is heartening to see that the livestock sector especially the bovines,
viz. cattle and buffaloes are contributing much in the domestic GDP and
poised for great leap with right policy initiatives. Simultaneously, it also
provides opportunities for development of agri-entrepreneurs utilizing the
tenets of farming practices employing these bovines. Gone are the days
where the farmers treated their livestock such as cattle and buffalo as a
non-essential commodity of their livelihood. The era of the “Urban Dairy
Farmer’s model” has come and with right vision, willingness and support of
the policy-makers and funding agencies new breed of agri-entrepreneurs
will willingly enter in this field. The entrepreneurship development through
bovines has great potential in reducing migration of agrarian community to
cities and also facilitating the reverse-migration too.
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Chateau, J., Rebolledo, C. and Dellink, R. (2011). An economic projection to 2050: The
OECD “ENVLinkages” model baseline. OECD Environment Working Papers. 41:
OECD Publishing.
Hawksworth, J. and Chan, D. 2013. World in 2050-The BRICs and beyond: prospects,
challenges and opportunities, PricewaterhouseCoopers LLP.
https://www.scribd.com/doc/6138516/Entrepreneurship-Development-in-Dairy-and-Food-
Industry
Kahan, D. (2012). Entrepreneurship in farming. Food and Agriculture Organization of the
United Nations, Rome.
Kular, I.K., Brar, A.S. (2011) Transforming Indian Agriculture through Agripreneurs. Indian
Journal of Marketing. 42(3).
Nayan, V. Peptide based functionalization of gold nanoparticles for sensing buffalo
164

luteinizing hormone. PhD dissertation, ICAR-National Dairy Research Institute,

Division of Animal Biochemistry, October (2015).
Taneja, V. K. (2012). Report of the working group On Animal Husbandry & Dairying 12th
Five Year Plan (2012-17).
The Complete Guide to Becoming an ‘Urban Dairy Farmer’ Without Quitting Your Job.
The Better India (2017). Available at: https://www.thebetterindia.com/92664/
santhosh-singh-amrutha-dairy-farm-urban-dairy-farmer-workshop/. (Accessed: 9th
September 2018)
Uplaonkar, S.S., Biradar, S.S. (2015). Development of agriculture in India through
agripreneurs. International Journal of Applied Research. 1(9): 1063-1066.
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Chapter
12
AGRI-ENTREPRENEURSHIP
DEVELOPMENT THROUGH EQUINES
Yash Pal, Parvati Sharma, Anuradha Bhardwaj, RA Legha and
BN Tripathi

1. INTRODUCTION
Approximately, 98% equine in India contributes to the employment
and income of the poor farmers and landless labourers under unorganized
sector who primarily depend on livestock. The remaining about 2% of the
equine population as organized sector is owned by elite sections of society
and is used for sports such as racing, polo and for national security purpose
by military and paramilitary forces. Indigenous horses like Marwari,
Kathiawari and Manipuri have been utilized for equestrian events, polo and
ceremonial events. Equine being an important animal for draught and
transport plays a significant role in rural economy and constitute main source
of income for sizeable underprivileged section of society in many parts of
the country. The major aspects of Agri-Entrepreneurship development
through equines lies with the application of farming in connection with
marketing of byproducts or value added products. There are limitations on
economics for development of market with equines and the end users and
clientele is very limited.
2. INDIAN SCENARIO OF EQUINE POPULATION
India has about 2% of the total World’s equine population or 5% of
Asian equine population (Chauhan, 2005). As per last livestock Census
(2012), the total population of equids in India is 1.13 million, comprising of
0.19 million mules and 0.32 million donkeys (Table 1). Major population of
equidae viz., donkeys, mules and ponies provide livelihood to the rural
societies living in arid, semi-arid and hilly regions, especially in the foot hills
166

of Himalayas, through transport and draught where as remaining small

population of equines is used in army, police, border security force, racing
industry and sports.
Table 1: Population Trends of Equines from 1966 to 2012 in India.
(Population in Millions)
Species/Year Horses & Ponies Mules Donkeys Total
1956 1.50 0.04 1.10 2.64
1961 1.30 0.04 1.10 2.44
1966 1.10 0.08 1.10 2.28
1972 0.90 0.08 1.00 1.98
1977 0.90 0.09 1.00 1.99
1982 0.90 0.13 1.00 2.03
1987 0.80 0.17 1.00 1.97
1992 0.80 0.20 1.00 2.00
1997 0.70 0.29 0.78 1.77
2003 0.79 0.31 0.67 1.77
2007 0.61 0.14 0.44 1.19
2012 0.62 0.19 0.32 1.13
% Change from (-) 59.33 (+) 250.00 (-) 60.00 (-) 54.92
1956-2007
% Change from (-) 12.85 (-) 51.72 (-) 43.59 (-) 32.77
1997-2007
% Change from (+) 2.08 (+) 43.34 (-) 27.22 (-) 0.05
2007-2012
Source:
1. Basic Animal Husbandry Statistics, 1999; 2004, Deptt. Of Animal Husbandry & Dairying,
Ministry of Agriculture, Govt. of India.
2. Agricultural Statistics at a Glance, 2002, Directorate of Economics and Statistics, Ministry
of Agriculture, Govt. of India.

It seems from population dynamics that population of horse and

donkeys reduced by 1.07% per year from 1956 to 2007. Contribution of
mule as pack animal has increased considerably registering an annual growth
rate of 0.57% per year during the above said period. A negative annual
growth rate of (-2.84%) animals for pack work over the year 1956 to 2007
(2.64 to 1.19 million) indicate farmer’s preference for faster mode of
 167

mechanized transport. There has been a continuous decline in the equine

population starting with 1966 up to the last census conducted in 2012. From
this it is evident that equine population is continuously declining but we do
not have any check on this decreasing trend and in coming future this
animal species will become an extinct one. In view of decrease in world
fuel reservoirs, we have to conserve and preserve this species for future as
at present we do not know future requirement related to equines.
3. TYPES OF EQUINES IN INDIA
Presently, India has a rich biodiversity of equids in the form of
seven distinct indigenous breeds of horses namely Marwari, Kathiawari,
Kachachi-Sindhi, Bhutia, Spiti, Manipuri and Zanskari. FAO has recognized
3 more breeds, namely Chummarti, Deccani and Sikang besides indigenous
donkeys and wild asses in the Rann of Kutch in Gujarat and Kiang in
Laddakh. These equines are well adapted to different agro climatic regions
and possess certain unique characteristics which are discussed here. The
Arab, the first to be introduced is believed to have contributed substantially
for the evolution of Kathiawari, Marwari, and Manipuri horses. Besides
this, the exotic breeds of horses introduced in India include English
Thoroughbred, Waler, Arab, Polish, Connemera and Halflinger.
3.1 Horses
Marwari
As the name indicates this breed of horse has its origin in Marwar
and Mewar region of Rajasthan. The breeding tract of Marwari breed is
Jodhpur, Udaipur, Jalore, Nagore, Pali, Sirohi, Barmer, Jaisalmer and
Rajsamand districts of Rajasthan. These horses facially resembles
Kathiawari breed probably due to mixing of Arabian blood. However both
the breeds can be differentiated on the basis of a set of biometric indices
(Gupta et al. 2012). The common colours of Marwari breed are bay, kumet
(chestnut), surang (liver chestnut), bhanwar (black or dark brown), dun
and cream. Their heights are 14-15 hands and weigh about 360 kg. The
ears are located at 90° axis and can rotate at 180° angle. Tips of ears are
pointed and curved inward like a sickle. The ears meet or overlap each
other when the animal rotates them. In comparison to Kathiawari horses,
Marwari horses have more height, length of ears, face, pastern and neck,
and prominent nostrils and convex nasal bone. The number of true to breed
Marwari horses is quite low probably due to indiscriminate cross-breeding
in the native area.
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Kathiawari
Kathiawari breed of horses is considered to be the oldest equine
breed in India (Gupta et al., 2014).The breeding tract of Kathiawari horses
is Rajkot, Bhavnagar, Surendranagar, Junagarh and Amreli districts of
Gujarat and in parts of Rajasthan adjoining Gujarat. This breed is believed
to have evolved from the wild horses of Kathiawar of Gujarat State and
Arabian horses which happened to land on sea shore after the crash of a
ship in Arabian sea. The prevalent colours of this breed are mainly chestnut,
bay, brown, grey, piebald, skewbald and cream. These animals measure
about 14-15 hands in height and weigh about 380 kg. The ears are of medium
length located on 90° axis and can rotate at 180°. As compared to Marwari
breed the ears of Kathiawari are smaller in length, less in width, broad
forehead and mandible, large expressive eyes, small muzzle, big nostrils,
shorter face and shorter back with concave profile.
Kachchhi- Sindhi
This indigenous horse breed is inhabitant to Kachchh district of
Gujarat and Jaisalmer and Barmer districts of Rajasthan. Total population
is about four thousand only. Unique features include roman nose fascia of
face, ears curved at tips but not touching each other, 56 to 60 inch height,
squat back, short pastern bone length, broader hoof for better grip and
compliant temperament. Coat colour is mainly bay. These horses are famous
for its ‘Rewal chal’ as it performs with great speed and stamina covering
long distance. The horse possess admirable drought and heat tolerance
capacity in arid & semi arid region.
Bhutia
These animals were supposed to be bred from Punjab to Bhutan in
the foot hills of Himalayas. Kaura et al. (1961) had linked Bhutia ponies
with Punjab area which is very close to home tract of Marwari horses.
Recent finding have indicated that there is some link between Bhutia ponies
and Marwari horses (Gupta et al., 2014). .It is quite possible that some
Marwar animals might have migrated long back from plane to hilly area
with Indian army.
The prevailing colours are usually grey, iron grey, occasionally
chestnut and roan. The height of Bhutia ponies is 13 to 13.2 hands and
weighs about 270 kg. These ponies have a short neck, with low withers, a
straight back, sloping quarters, deep chest, straight shoulders, and a well-
set tail. Their mane is long. They are similar to the Spiti pony and the
Tibetan pony, as these breeds have been interbred for years. The Bhutia
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Pony can live on much smaller food rations than other ponies of its size.
Population of Bhutia breed has decreased drastically from 5436 in 1997 to
546 in 2007. Thus, immediate attention and efforts are required to conserve
this precious breed of ponies in India.
Spiti
The breeding tract of Spiti horses is Kaja subdivision of the Lahul
and Spiti district and the Yanthang area of the Kinnaur district of Himachal
Pradesh in India. They are reared as pack animals at high altitude. The
mane is long and has hairs of 25 to 40cm in length. The body colours are
grey, brown, black and piebald. On an average, Spiti ponies stand 129cm
height, 100cm body length, 148cm heart girth and weigh about 320 kg.
Generally, they are hardy, surefooted and used mainly for riding and also as
pack animals in cold hilly regions. These horses are capable of tolerating
extreme cold conditions very easily as their legs are covered with coarse
and long hairs. It has also been ascertained from various sources that their
number is declining rapidly. Therefore, an urgent need is felt to conserve
this breed taking important and quick steps.
Manipuri
Manipuri ponies are well known as Polo ponies. These are bred
and found in State of Manipur and are considered as descendant of both
the Mongolian wild horse and the Arab. On genetic analysis these were
clubbed with Spiti and Zanskari ponies (Gupta et al., 2014). The prevailing
colours are not specific, but brown or reddish brown is common. These
horses have small sized body with a fairly long face and well known for
elegance, endurance and speed. The height of Manipuri horses is about 11
to 13 hands and they weigh about 300 kg. The legs of these animals are of
fine quality, knees and hocks are strong and pasterns possess a gradual and
proportionate slope. Ears are alert and almond shaped. Head is light and
well proportionate with straight profile. Withers are moderately built, neck
well formed with a full mane, chest deep, back straight and shoulders nicely
sloping. Since the population of this breed has drastic decreased, its
conservation is quite important along with other pony breeds (Gupta, 2012)
Zanskari
These are bred in Leh Laddakh region of Jammu and Kashmir.
Common body colours are grey, bay and black. These horses are known
for their hardiness and ability to work at high altitude. Their tail is long
which touches the ground. Body hairs are fine, glossy and long. The height
of the animal of this breed is between 13.2-14.7 hands. Hair coat of Zanskari
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ponies is thick and quite similar to that of Spiti ponies. Special mention is
made of equines of this region for their exceptional ability to survive and
perform under very harsh climatic conditions of their high altitude habitat
(between 3000 to 5000 meters). As per information received from local
people, only a few hundred horses at present exist in Zanskar and other
valleys of Laddakh. For breed improvement and conservation through
selective breeding, Govt of Jammu & Kashmir has specially established a
Zansakri Equine Breeding farm at Chuchot, Leh, Ladhakh (Gupta et al.
2010).
3.2 Donkeys
The Donkey is a domesticated version of the wild ass. The donkey
was domesticated about 5,000 years ago in Egypt, Iraq and Iran and was
important, along with horses and camels in the development of trade and
mobility. They were an important pack animal for the Roman legions who
introduced the donkey to Britain. Genetic fingerprints indicated that wild
African asses were the ancestors of domestic donkeys, making donkeys
the only important domestic animal known to come from Africa. Donkey
DNA analysis showed that there were 2 distinct populations of domestic
donkey (Science Vol 304, p 1781): one descended from the Nubian wild
ass Equus asinus africanus and the other being similar to the Somalian
wild ass Equus asinus somaliensis (http://www.arthurgrosset. com/
mammals/donkey.html, retrieved August 21, 2010). The Indian donkeys
are not much studied animals using molecular genetics tools. However,
based on the phenotype, the Indian donkeys have been grouped under “Large
White” or “Small Grey” categories. There are no breeds assigned to donkeys
(Varshney and Gupta, 1994) except Spiti donkeys (INDIA_DONKEY_
0600_SPITI_05001). The total Donkey population in the country has
decreased by 27.22% over the previous census and the total donkeys in the
country are 0.32 million numbers in 2012.
Poitou Donkeys
Breeding tract of Poitou donkeys is in Europe (France). These
donkeys were imported from UK in 1990 for superior quality mule production
and breed improvement of indigenous donkeys. Good quality donkey jacks
and jennies of exotic breed obtained from France and other European
countries are maintained by NRCE, State Animal husbandry Deptt. of
Haryana and Uttar Pradesh, and at Equine Breeding Farms of the Army.
Indian Donkeys
Indian donkeys range from white to grey or black in colour. They
 171

usually have a dark stripe from the mane to the tail and a crosswise stripe
on the shoulders. The mane is short and upright and the tail has long hair
only at the end. The very long ears are dark at the base and tip. The
different breeds of donkey vary greatly in size and shape but the average
donkey stands 40 inches (102 cm) at the shoulder, the Sicilian donkey stands
24 inches (61 cm), the large ass of Majorca stands at about 62 inches (158
cm), while the American ass may reach a height of about 66 inches (168
cm) (http.//student.britannica.com, retrieved May 13, 2009).
(a) Large white Donkey
These donkeys were earlier abundant in Punjab, Haryana and
Gujarat state. But, now they are localized to parts of Gujarat state only.
The larger size donkeys are light grey to almost white in colour. The average
height at withers is 110cm and weighs about 150 kg. These donkeys are yet
to be characterized. Population of these donkeys has decreased drastically
due to preference of end users is small size donkeys.
(b) Small Grey Donkey
Donkeys of this type prevail in almost all parts of northern India.
The smaller size ones are dark grey in colour. They usually have a dark
stripe from the mane to the tail and a crosswise stripe on the shoulders.
The average height at withers is 90cm and weighs about 120 kg. The donkeys
of this breed are yet to be characterized.
(c) Spiti Donkey
Donkeys of this breed are found in Spiti valley of Himachal Pradesh.
These donkeys are of dark brown to black in colour. These donkeys look
like exotic donkeys (Poitou) in appearance and colour. The height at withers
varies from 80-95cms of Spiti donkeys. Ears are long. The donkeys of this
breed are yet to be characterized at phonotypic and genotypic levels.
Donkey Population Trend
The great majority of donkeys in the world (probably over 95%)
are kept specifically for work. Their most common role is for transport,
whether riding, pack transport or pulling carts. In most countries, donkeys
can be owned and used by either men or women. Children are frequently
given responsibility for working with donkeys. Some farmers keep donkeys
for guarding sheep. Since donkeys are seldom owned and maintained unless
they are worked, estimates of national and regional donkey populations
provide useful indicators of donkey work worldwide. Overall population
figures cannot provide information on the frequency of donkey use.
172

Donkey’s population has declined dramatically in the most

industrialized countries of Europe and North America. Although donkey
populations are low in the developed countries, but it is the relatively stable
in many rapidly industrializing countries such as Brazil, China, Dominican
Republic, Ecuador, Egypt, Mexico, Morocco and Pakistan. These countries
may be rapidly urbanizing, but they also have large rural populations with
low incomes. These rural people continue to benefit from donkeys for local
transport. The countries that have shown major declines in donkey numbers
in recent years, have often have been those where the rural populations
have had access to private motor vehicles (e.g., Italy, Ireland). The
implication is that urbanization and industrialization only starts to have a
significant effect on donkey populations when rural people are wealthy
enough to replace donkey power with motor power. This is still a long way
off in many parts of Africa, Asia and Latin America.
Certainly, declines have been recorded from Turkey, Israel and South Africa.
In these countries (as in others) the use of donkeys is perceived as
‘backward’ and there are sometimes psychological pressures to remove
the donkeys and become modernize. In Indian context also somehow more
industrialization/mechanization may be responsible for decreased trend for
donkey population.
In industrializing countries, expectations of declining donkey
populations could become self-fulfilling prophesies, if accompanied by social
pressures or legislation that marginalize donkey owners.
4. SCOPE OF EQUINE BASED LIVELIHOOD SYSTEM IN
INDIA-AGRI-ENTREPRENEURSHIP OPPORTUNITIES
The present scenario with respect to equines in the economic and
social milieu varies in different parts of the world and so is in India. In
contrast to the affluent Western societies which prefer horses for sports
and recreation, in India it is for the livelihood of the landless, small and
marginal farmers the equine serve. However equines are playing a silent
but an important role in human life.
Approximately, 98% equine in India contributes to the employment
and income of the poor farmers and landless labourers under unorganized
sector who primarily depend on livestock. The remaining about 2% of the
equine population as organized sector is owned by elite sections of society
and is used for sports such as racing, polo and for national security purpose
by military and paramilitary forces. Indigenous horses like Marwari,
Kathiawari and Manipuri have been utilized for equestrian events, polo and
 173

ceremonial events. Equine being an important animal for draught and

transport plays a significant role in rural economy and constitute main source
of income for sizeable underprivileged section of society in many parts of
the country. Though horses and ponies are scattered all over India, the
donkeys are mainly concentrated in North-Western India (Rajasthan, Gujarat,
Haryana, Uttar Pradesh, Uttaranchal and Delhi). The use of equines for
draught purpose has special economic significance in difficult hilly terrains,
arid and semi-arid zones where motorable roads are inadequate. The
improvement of equine production has great potential and significance for
uplifting the economic status of the poorest of the poor in rural and semi-
urban areas. Inspite of mechanized transport and all unfavorable
circumstances, the use of mules for draught and of Thoroughbred and other
horses for sports, tracking and racing has increased considerably. This clearly
indicates the distinct role played by the mule as a draught animal for
transporting the agricultural commodities and household goods in the states
where agricultural and horticultural produce is affluent requiring transport
from the point of production to the point of sale and consumption.
4.1 Role of Equines at Pilgrimage places and in tourism: As saddle-
horses, ponies of the Kashmir valley are providing entertainment to
numerous tourists since many decades in world famous places like Gulmarg,
Pahalgam, Sonamarg and Yousmarg etc. They also carry the tourists and
their belongings up and down the Himalayan Mountains while tracking over
the beautiful slopes of the valley. The Amar Nath (Kashmir) and Vaishno
Devi Yatra (Katra pilgrimage, Jammu) by millions of Hindus every year
would not have been possible without this quadruped. Besides these places,
equines are also used in places of tourist attractions in other parts of the
country in earning livelihood for their owners.
4.2 Role of horses in Safari: In many parts of Rajasthan, horse safaris
and trekking has also been initiated during the last 10-15 years by some of
the organized Marwari equine breeders for earning a handsome amount
from the tourists. Mostly such safaris are preferred by tourists coming
from American and European countries. This has also highlighted the
importance and quality of Marwari horses in foreign countries which may
pave way for export of this breed.
4.3 Equestrian events: There are many ways to show off your horse,
competitions being one of them. Some of the competitions are Endurance
riding, Show Jumping, Tent pegging, Polo and Horse racing etc. A lot of
people take interest in such equestrian events at different levels in earning
their livelihood. Some people are engaged in feeding & watering, exercising,
174

grooming, foot care and farriery, as Jockey and general management of

horses. Livelihood of these people is based on existence of horse and their
use in equestrian events.
4.4 Patrolling: In most of the states, horses are being used by police/
BSF/ Para-military forces to patrolling purposes in their routine activities.
Beside this good quality horses including Marwari horses are also being
maintained by important Govt houses including Rashtrapati Bhawan also.
Presence of equines at such places results in employment of a fleet of
trained personnel in earning their livelihood.
4.5 Riding School: Horse riding is becoming an integral part of school
education in different parts of our country. Students are being trained in
horse riding and handling during their schooling in India. This has also lot of
potential in equine based livelihood system in India if State Govts and
education institutions make it compulsory for all young students during their
school education itself. This will definitely help in developing a bond between
horse and rider and ultimately interest in riding of such riders will help in
horse development and conservation.
4.6 Transportation: In many parts of northern India especially in western
UP, horses, mules and ponies are being used for transporting the children to
schools, passengers from villages to main roads/high ways. These horse
owners earn their livelihood through transporting the human beings from
one place to other. As a transport animal, donkeys are used by owner for
earning livelihood in different manners viz., use of donkeys at brick-kilns,
construction sites, construction of multi-storied buildings, sale of vegetables,
milk transport etc. In different parts of the Country, one can find utility of
equines in transporting various items.

Livelihood resources from equines

 175

5. UTILITY OF EQUINE PRODUCTS

i) Equine milk: It has been observed that equine milk has tremendous
medicinal value, curative agent for metabolic and allergic diseases, use in
cosmetics and anti-aging property. In some part of the country, donkey milk
is sold for medicinal uses. The donkey milk fetch a good amount of money
for donkey milk providers and is in fair demand. Donkey milk based cosmetics
and health mixtures can be an attractive agribusiness for equine framers in
India. This new possibility of increasing the income of the equine owners is
very widespread among general public.
ii) Vermi-composting: Earlier disposal of equine dung was havoc. But,
now the same is being used for production of vermi-composting at some
research and private farms. The vermin-compost is quite beneficial in
agricultural fields also. This can also be exploited as a source of livelihood.
6. ECONOMIC EVALUATION
Some economic studies have been carried out previously related to
earning obtained by the equine owners. Pal et al. (2013) reported that
average income per donkey per day of donkey owners was Rs 75.0±1.89
and Rs 187.2 ±7.74 in SE and NE Rajasthan, respectively. Average income
per donkey per day in NE Rajasthan was high may be due to use of donkey
in carting to carry more goods in small duration of time. But, overall income
from donkeys per household and their economic status was higher in SE
Rajasthan than NE Rajasthan. In another study, donkey owner earned Rs
100 to 250 per day with cart including his own salary. Slightly low (Rs 100
to 200) earning was observed at brick kiln and construction sites (Singh et
al. 2007). The study indicated that donkeys contribute to sustainable rural
development in Rajasthan. At certain Pilgrimage, equine owners earn a
handsome amount (Rs. 250-500) from their ponies and mule per day per
animal.
REFERENCES
Chauhan, S.K., 2005. General Scenario of Equines in Equine Husbandry in the Mountains:
A Socio Economic Analysis. Mittal Publications, New Delhi, pp: 26-30.
Gupta, A. K. (2012). Manipuri Ponies: Need and Strategies for conservation. In : 30 th
ISVM National Symposium on “Animal Health vis-à-vis Animal Welfare with
Application of Biotechnology with Special Reference to North-Eastern Region: &
Annual Convention of Indian Society for veterinary Medicine (ISVM), Feb., 1-3,
2012.
Gupta, A.K., Chauhan, M., Bhardwaj, A., Gupta, N., Gupta, S.C., Pal, Y., Tandon, S.N.
and Vijh, R.K.(2014). Comparative Genetic Diversity Analysis among Six Indian
176

Breeds and English Thoroughbred Horses. Livestock Science 163: 1–11.

Gupta, A. K., Pal, Yash and Tandon, S. N (2010) “Zanskari Pony” (eds. A. K. Gupta, Yash
Pal and S. N. Tandon) Publisher : Director, NRCE, Hisar pp 1-16.
Gupta, A. K., Tandon, S. N., Pal, Y., Bhardwaj, A., Chauhan, M. (2012). Phenotypic
characterization of Indian horse breeds – a comparative study.
Anim.Genet.Resour.50, 49–58.
Kaura, R.L., (1961). Breeds of horses and donkeys. In: Kaura, R.L. (Ed.), Indian Breeds of
Livestock (Including Pakistan Breeds), Prem Publisher, Golaganj, Lucknow, India,
pp. 48–57.
Pal, Yash, Legha, RA., Lal, Niranjan., Bhardwaj, Anuradha., Chauhan, Mamta., Kumar,
Sanjay., Sharma, RC and Gupta, AK (2013). Management and phenotypic
characterization of donkeys of Rajasthan. Indian Journal of Animal Sciences 83
(8): 793–797
Singh M K, Gupta A K and Yadav M P. 2007. Performance evaluation of donkeys in arid
zone of India. Indian Journal of Animal Sciences 77 (10): 1017–20.
Singhvi, N. M. (2001). Conservation and management of equines. Indian J. Animal Genet.
Breeding 23: 292-295.
Varshney, J.P. and Gupta, A.K. 1994. The donkey and it potential - a review. Int. J. Anim.
Sci. 9 : 157-167.
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Chapter
13
ORNAMENTAL AQUACULTURE FOR
AGRI-ENTREPRENEURSHIP
DEVELOPMENT
Saroj K Swain, Sunil Ail1, Mukesh Kumar Bairwa, A. K. Prusty
and Peyush Punia

1. INTRODUCTION
Aquaculture is a big platform which provides vast opportunities to
become a successful entrepreneurship and ornamental aquaculture is a
limited risk business. The scope differs with investment varying from
minimal capital of Rs. 50,000 to Rs. 50,00,000 roughly. A beginner has to
learn the skills with limited facilities and later on venture into expansion.
The business is built on market of around 300 exotic fish species and their
variants. There are around 100 indigenous ones catering to the needs of
export and domestic market. Creation of new varieties and introduction of
new attractive species into the market is the key to this profession.
Ornamental fishes are nature’s wonderful creation. They create a
peaceful and relaxing ambience that’s why they are often referred as Aquatic
Jewels. Keeping the ornamental fish is the second most important hobby in
the world followed by photography. There is a steady increase in aquarium
fish trade and more and more people are entering in the farming and trade
as there is a great demand of ornamental fish and aquarium accessories
among the hobbyist. Ornamental fish farming is one of the most lucrative
business opportunities within aquaculture which creates ample opportunities
in terms of growth and expansion. FA0 (2014) estimates the size of the
world trade of ornamental fish to be US $ 362 million. So far India has only
explored only a minor fraction of the international market potential. But in
recent times, the sector has shown tremendous growth due to the efforts of
178

the farmers and entrepreneurs and developmental efforts of Govt agencies.

Therefore many entrepreneurs are venturing into this lucrative business
which in turn facilitates the growth of the overall subsector.
The hobby of ornamental fish keeping in India started momentum
in the country since the beginning of 21st Century though it was started
during British raj during 18th century. The hobby of ornamental fish keeping
started at Kolkata during 19th century. The ornamental fish are mainly
produced in large quantities in small villages in and around Kolkata, Chennai,
Mumbai and other cities like Bangalore, Kochi, Madurai and small cities of
India. Several backyard units have been developed involving all the family
members for a secondary source of income. To sell their products several
pet shops mainly comprising aquarium fishes are also established in India.
There are about more than 5000 aquarium shops and almost same number
of ornamental fish production units in the country. It is estimated that
presently, the number of house-holds in country keeping an aquarium is
only 2% of a total number of about 50.00 million middle income group
house-holds whereas in developed countries it is as high as 20%.The
National Fisheries Development Board (NFDB), Department of Animal
Husbandry, Dairying and Fisheries, Ministry of Agriculture and Farmer’s
Welfare (MOAFW), Hyderabad, have introduced few schemes for
development of ornamental fisheries in the country.
Export of ornamental fishes from India accounted to Rupees 567
crores (US $ 1 Million) in 2014-15 as stated by Marine Products Export
Development Authority (MPEDA). The major share of export market of
ornamental fishes is done to Singapore amounting Rs. 170 crores. There is
a huge market as far as indigenious fishes are concerned with much of the
fish diversity remains unexplored.
Kolkata has been the largest exit point for ornamental fish export,
followed by Mumbai and Chennai. These metropolitan cities are also the
major breeding centres for freshwater ornamental fishes. In the recent
years, people in the States of Kerala, Andhra Pradesh, Gujarat, Karnataka,
Orissa and other places have started producing ornamental fishes. It has
been observed that most of the aquarium breeding centers and the related
trade have been confined in and around the metropolitan cities like Kolkata,
Chennai and Mumbai, obviously due to ready urban market and availability
of international airport facilities for import and export business.
Ornamental fish village have been developing throughout India.
The main attractions include Udairampur in Amtala (West Bengal) and
Kolathur (Chennai). The cities of Karnataka namely Bangalore and
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Mangalore has few ornamental fisheries commercial production units

developed in private sector. In Mumbai, there are many indoor breeding
units, where breeding of high value fishes like Angels and Discus are done.
2. BREEDING STRATEGIES AND SPAWNING ENVIRONMENT
Many of the ornamental fish species readily spawn in the aquarium
or cement tanks, but the eggs or hatchlings often do not survive due to
predatory nature of the parents. Sometimes the mortality occurs due to
unfavourable, polluted or adverse water conditions. It is always preferable
to check the water quality before planning for any breeding programme. It
is always better to breed the fish in a separate spawning tank. Depending
on the spawning method, the spawning tank can be set up in number of
ways based on the spawning behaviour of the fish.
A. Ovo-viviparous (Livebearers)
Livebearers are fish that bear live young. They are ovoviviparous
in nature, where the eggs form and hatch within the female before birth.
Livebearers are often prolific, easily bred species. Breeding of most of the
livebearers is relatively easy. They are mostly molly, platy, swordtail and
platy. Development of young ones takes place inside the female body and
they are released after about four weeks. The species of livebearers include
the guppy (Poecilia reticulata), black molly (Poecilia sphenops), swordtail
(Xiphophorus helleri) and platy (X. maculatus). The number of babies
produced by a livebearer is normally 50-60 only, though some larger
swordtails and guppies may produce as many as 100 nos. If the livebearers
are fed properly with natural feed and supplemented with better artificial
feed, the mother produces more than 100 young ones. Soon after the baby
comes out from the mother, they have to be separated out to reduce mortality
caused by predation. Small livebearers can be bred in breeding traps where
the newborn come out of the reach of the brood mother. However, a more
traditionally preferable set-up is a separate, densely planted tank where
only gravid females are kept. As the young ones are visible in the water
surface, they are to be removed and fed the powdered feed and zooplankton.
As soon as all the young are born, the mother is to be removed and fed
suitably.
B. Oviparous (egg layers)
Most of the aquarium fish are egg-layers with external fertilization.
Egg-layers can be divided into five groups’ viz., egg-scatterers, egg-
depositors, egg-burriers, mouth-brooders, and nest-builders.
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(i) Egg-scatterers
Zebra fish (Zebra danio) which is considered as an egg scatterer,
lays non-adhesive eggs. The larger ones are grouped under the genus Danio
and other smaller varieties are under genus Brachidanio. The important
varieties of danios include the giant danio (Danio aequipinnatus), pearl
danio (Brachidanio albalineatus) and zebra danio (Brachidanio rario).
Since the egg scatterers and often drives the egg do not show parental care
and eat their own eggs, the spawning tank has to be set in such a way that
the eggs fall out of the reach of spawning parents.
For breeding such fishes the male and female ratio should be
maintained at 1:1 or 2:1. Around 40-50 l capacity tank is sufficient for
spawning for most eggs scatterers. The female is introduced in the breeding
tank one day earlier than the males. But it is very difficult to know whether
the female has already laid the eggs because of the smaller size of eggs
that may remain hidden behind the pebbles. Sometimes the brood fishes
are kept in a mesh net happa from where the eggs drop to the bottom. If
the temperature is favourable, the eggs require two-three days hatching
time. As soon as the tiny hatchlings are seen in the aquarium tanks the
parents are to be removed. The hatchlings take 2-3 days to absorb their
yellow yolk sac. Then they are fed with infusorians for 4 days followed by
rotifers and smaller zooplanktons for a week, after which they can be
provided powdered formulated feed along with zooplankton.
The egg scatters laying adhesive eggs are mostly the Gold fishes,
Carassius auratus. When secondary sexual characters appears (by
observing the maturity condition), the male and female gold fish are selected
and kept in glass tanks or ferro-cement tanks. Since gold fish eggs are
sticky in nature, they require some surface for adhesion. With various types
of natural submerged aquatic plants such as Hydrilla can be used after
treatment for this purpose. Artificial nests can be prepared by making split
plastic ropes with one end tied or burnt to make it blunt. Even polythene
strips have been found suitable for the purpose.
The female and male in the ratio of 1:2 are released into breeding
tank during late evening hour. The male chases the female, presses its
operculum against female’s abdomen and fertilizes the eggs while swimming
beside her. Egg laying usually takes place within 6-12 hrs of releasing the
broods. After spawning the nest is transferred to a different container, or
alternatively, the parent fish transferred from the breeding tank. If this is
not done, the parents are most likely to eat away the eggs to compensate
the post-spawning loss of energy.
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Generally, the female lays about 2000-3000 eggs. Healthy eggs

are golden transparent in colour and the unfertilized eggs will remain opaque
and continue to remain as such with arrested growth. These dead eggs
become pale white and hair such as aquatic fungus would grow on all the
sides, giving it the appearance of a small powder-puff. Under ideal condition,
within three days, the eggs hatch out with a hatching rate of 80-90% when
the young larvae start to float, the nest materials are taken out from the
tank. Generally, the tiny hatchlings remain clinging to the nest, so precaution
has to be taken while transferring the nest from the breeding pool
(ii) Egg-depositors
These species deposit their eggs on a substrate (tank glass, wood,
rocks and plants). Egg depositors usually lay fewer eggs than egg-scatterers,
and the eggs are larger. Depending on the type of egg depositor, the tank
should be furnished differently. For those egg-depositors that care for their
young, the parents can be retained in the tank after spawning.
Substrate spawners, depending on the species, should be given a
tank furnished with glass panes, broad-leafed plants, or flat stones for
spawning sites. Some species such as Discus and Angelfish prefer vertical
surfaces. From a group of such fishes a pair is selected by providing a
slanting serrated glass surface plate, where a suitable pair comes near the
plate for cleaning the surface for laying eggs. At that time, the pair is carefully
removed for further breeding in a separate tank. For cavity spawners such
as Badis badis, Chameleon fish, flower pots turned on their side, coconut
shells, and rocky caves are suitable spawning sites. The tank should be
furnished with either live or plastic plants to give the fish a sense of security.
Egg-depositors that do not care for their young should be given a
tank furnished with fine and broad-leafed plants. After spawning the parents
or plants with the eggs are to be removed. If the plants containing eggs are
removed, new plants should be placed in the tank for future spawning. The
very common ones are Rasbora daniconius (Slender rasbora). They require
soft, slightly acidic (pH 5.5-6.5) waters with a pivatal temperature on
28oC. After conditioning the male and female, they are placed in a breeding
tank planted with flat leaved plants. Rasboras prefers peace and quiet
environment for breeding with low lighting conditions. The male and female
brooders are placed together in breeding tank. Once spawning has occurred,
as indicated by the slimness of the female fish, both parents from the breeding
tank need to be removed. The eggs laid on the underside of the flat levels
will hatch after 25-30 hours. Generally from a larger female up to 250 eggs
are produced and resultant hatchlings become free swimming after 3-4
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days. At this stage the tiny hatchlings should be fed infusorians and newly
hatched brine shrimp. As they grow bigger they should be fed zooplankton.
They can also be bred by another method by putting the gravid brood fish in
a mesh net through which eggs are dropped to the bottom and hatching
takes place.
(iii) Egg-burriers
These species usually inhabit waters that dry up at some time of
the year. The majority of egg burriers are Killifish which lay their eggs in
mud. The mature parents lay their eggs before dying when the water dries
up. The eggs remain in a dormant state until the fresh rains which stimulate
hatching. These fishes are Aplocheilius lineatus, A.panchax A. dayi and
A. parvus. some breeders prefer a peat-moss substrate for egg-burying
species . In order to initiate hatching, the stored peat can be immersed in
soft water.
(iv) Nest-builders:
Nest builders build the nest for their eggs. The nest is usually in the
form of bubble-nest formed with plant debris and saliva-coated bubbles
(labyrinth fish), or an excavated pit in the substrate (cichlids). Nest builders
practice brood care. Therefore, they should be provided with a wide leafy
material with which to build their nests and the tank should have no water
current to disturb the nest. good nest builders are Gouramies ( Colisa lalia,
C fasciata ) and fighter fish (Betta splendens).
For breeding such fishes the sexes are kept separately for few
weeks. As the abdomen of female becomes grossly distended with eggs it
is transferred to a smaller breeding tank containing few floating plants with
water level of 5-6" at a temperature of 28-30oC. After one or two days a
good male is introduced in the breeding tank. A transparent perforated
plastic sheet or a glass is covered over the tank to keep the humidity and
temperature at high level and help to maintain the bubble nest in good
condition. The male soon begins building a bubble nest. This is possible by
taking a large gulp of air at the water surface and converting it into many
smaller bubbles that are passed into gill chamber and coated with an anti-
burst agent before release. During and after making the nest, the male
displays to the female which usually ends with both fish embracing near the
nest resulting in the deposition of a large numbers of eggs in the nest. After
making the bubble nest if the female do not lay eggs then the male become
very aggressive and may kill the female. After breeding, the female is
removed. The male guards the eggs which remain attached to the floating
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bubble nest. Within 24 hours, hatching takes place. The moment, the fry
begin leaving the nest, the male is also removed from the tank. After 36
hours, the young ones remain in free swimming stage, they are provided
with infusorians as starter feed. After a week the fry starts taking small
zooplanktons. During this stage the fry require vigorous feeding.
Subsequently when they grow little bigger they can be stocked in larger
cement tanks for further growth.
(v) Mouth-brooders:
These are species that carry their eggs or larvae in their mouth.
Mouth brooders can be divided into ovophile and larvophiles groups. Ovophile
or egg-loving mouth-brooders lay their eggs in a pit, which are sucked up
into the mouth of the female. The small number of large eggs hatches in the
mother’s mouth, and the fry remain there for a period of time. Fertilization
often occurs with the help of egg-spots, which are colorful spots on the
anal fin of the male. When the female sees these spots, she tries to pick up
the egg-spots, but instead gets a mouthful of sperm, fertilizing the eggs in
her mouth. Many cichlids and some labyrinth fish are ovophile mouth
brooders.
Larvophiles or larvae-loving mouth-brooders lay their eggs on a
substrate and guard them until the eggs hatch. After hatching, the female
picks up the fry and keeps them in her mouth. When the fry can fend for
themselves, they are released. Ovophile mouth-brooders can be bred in the
main aquarium because the eggs are protected in the mouth cavity. However,
it is better to separate mouth-brooders with eggs because of their potentially
aggressive behavior. There are no special breeding tank requirements other
than the usual tank set-up for the species. Larvophile mouth-brooders should
be placed in a breeding tank because the eggs are not protected in the
mouth, but laid on a surface where they are open to predators. For mouth
brooders, open cement cisterns of 2 feet water depth with planted long
leafed plants are generally used for commercial production.
3. RANGE OF ORNAMENTAL FISH SPECIES
A large number of the exotic ornamental fishes are accepted by
the hobbyist and are enlisted in Table 1. The fishes that are acclimatized in
captivity range from cheap guppies to costly neon tetra, discuses and other
expensive fishes, are bred by the aqua-culturists and available with retailers
at every city and town. But for commercial production, the infrastructures
needs to develop are a number of cement tanks of various sizes, aerators,
overhead tank, bore well, electric/diesel pump, a hatchery shed and other
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necessary items. For the same one may require Rs 80,000 to few lakhs of
rupees depending on the production capacity.
Table 1. Important exotic ornamental fish traded in India ( Swain et.al. 2010)
Category /Common name Scientific Name Family Remarks
LIVE-BEARERS
Swordtail
1 Red velvet swordtail Xiphophorus helleri Poecillidae PE
2 Black swordtail Xiphophorus helleri Poecillidae PE
3 Marvel swordtail Xiphophorus helleri Poecillidae PE
4 High-fin tangerine swordtail Xiphophorus helleri Poecillidae PD
5 High-fin lyre tail Xiphophorus helleri Poecillidae PD
6 pineapple swordtail Xiphophorus helleri Poecillidae PE
7 Tuxedo swordtail Xiphophorus helleri Poecillidae PE
8 Tangerine swordtail Xiphophorus helleri Poecillidae PE
9 Orange pineapple swordtail Xiphophorus helleri Poecillidae PE
10 Green swordtail Xiphophorus helleri Poecillidae PE
Molly
11 Black molly Poecilia spenops Poecillidae PE
12 Spotted molly Poecilia spenops Poecillidae PE
13 Chocolate molly Poecilia spenops Poecillidae PE
14 Silver molly Poecilia spenops Poecillidae PE
15 Albino molly Poecilia spenops Poecillidae PE
16 Albino lyre-tail molly Poecilia spenops Poecillidae PE
17 Sail fin molly Poecilia latipinna Poecillidae PE
18 Veil-tail molly Poecilia latipinna Poecillidae PE
19 Lyre-tail molly Poecilia latipinna PE
Guppy
20 Neon guppy Poecilia reticulata Poecillidae PE
21 Cobra guppy Poecilia reticulata Poecillidae PE
22 Butterfly guppy Poecilia reticulata Poecillidae PE
23 Mixed guppy Poecilia reticulata Poecillidae PE
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24 Golden guppy Poecilia reticulata Poecillidae PE

25 Black guppy Poecilia reticulate Poecillidae PE
26 Swordtail guppy Poecilia reticulata Poecillidae PE
Platy
27 Variatus platy Xiphophorus variatus Poecillidae PE
hybrid
28 Maculatus platy X. maculates hybrid Poecillidae PE
29 Red wagtail platy X. maculatus hybrid Poecillidae PE
30 Gold crescent platy X. maculatus hybrid Poecillidae PE
31 Blue platy X. maculatus hybrid
32 Bleeding heart platy X. maculatus hybrid Poecillidae PE
33 Red tuxedo platy X. maculatus hybrid Poecillidae PE
EGG-LAYERS
Gold fish
34 Shubunkin gold Carrassius auratus Cyprinidae PE
35 Red cap gold Carrassius auratus Cyprinidae PE
36 Red cap oranda Carrassius auratus Cyprinidae PE
37 Black moor Carassius auratus Cyprinidae PE
38 Pearl scale gold Carassius auratus Cyprinidae PE
39 Calico gold Carassius auratus Cyprinidae PE
40 Peacock tail gold Carassius auratus Cyprinidae PE
41 Bubble-eye Carassius auratus Cyprinidae PD
Shark
42 Red-tailed Black shark Epalzeorhyncus Cyprinidae PD
bicolor
43 Tiger shark Pangassius species Cyprinidae PD
44 Silver shark Balantiocheilius Cyprinidae PD
melanopterus
Gourami
45 Kissing gourami Heleostoma Anabantidae PE
temminckii
46 Golden gourami Trichogaster Anabantidae PE
trichopterus
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47 Siamese fighting Fish Betta splendens Anbantidae PE

48 Chinese paradise fish Macropodus Anabantidae PD
opercularis
49 Pearl gourami Trichogaster leeri Anabantidae PD
50 Blue three-spot gourami T.trichopterus Anbantidae PE
sumatranus
51 Moonlight gourami Trichogaster Anbantidae PE
microlepis
Angel and Discus
52 Pearl scale angel Pterophyllum scalare Cichlidae PD
53 Vail tail angel P. scalare Cichlidae PD
54 Ghost angel P. scalare Cichlidae PD
55 Black angel P. scalare Cichlidae PD
56 Marble angel P. scalare Cichlidae PD
57 Marble pearl scale angel P. scalare Cichlidae PD
58 Discus (pompadour fish) Symphysodon discus Cichlidae PD
Severum
59 Albino severum Cichlasoma severum Cichlidae PE
60 Convict cichlid C. nigrofasciatum Cichlidae PE
61 Fire-mouth cichlid Cichlasoma meeki Cichlidae PE
62 Ramerez’s dwarf cichlid Papiliochromis Cichlidae PE
ramirezi
63 Albino Oscar Astronotus ocellatus Cichlidae PD
64 Tiger Oscar A. ocellatus Cichlidae PD
65 Red Oscar A. ocellatus Cichlidae PD
Catfish
66 Sucker mouth catfish Plecostomus spp. Loricariidae PD
(Crocodile fish)
67 Albino sucker mouth cat Plecostomus spp. Callichthydae PD
68 Leopard catfish Callichthydae PD
69 Bronze catfish Corhdorismelanistius Callichthydae PD
Tetra
70 Congo tetra Micralestesinteruptus Characidae PD
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71 Diamond tetra Moenkheusiapittieri Characidae PD

72 Bleeding heart tetra Hyphessobrycon Characidae PD
erythrostigma
73 Black-widow tetra Gymnocorymbus Characidae PD
ternetzi
74 Neon tetra Paracheirodon innesi Characidae PD
75 Cardinal tetra Cheirodon axelrodi Characidae PD
76 Buenos Aires tetra Cheirodon axelrodi Characidae PD
77 Albino Buenos Aires Cheirodon axelrodi Characidae PD
78 Golden widow tetra Cheirodon axelrodi Characidae PD
79 Serpae tetra Hyphessorbrycon Characidae PD
serape
80 Boehlke’s penguin Thayeria boehlkei Characidae PD
Barbs
81 Rosy barb Pethia conchonius Cyprinidae PE
82 Tiger barb (Sumatra barb) Puntius tetrazona Cyprinidae PE
83 Albina Tiger barb Puntius tetrazona Cyprinidae PE
84 Green tiger barb Puntius tetrazona Cyprinidae PE
Koi carp
85 Two color koi ( Asia Koi) Cyrpinus carpio Cyprinidae PE
var. koi
86 Nishiki koi (3 color koi) Cyrpinus carpio Cyprinidae PE
var. koi
87 Manila koi (mongrel koi) Cyrpinus carpio Cyprinidae PE
var. koi
Knife fish
88 Black ghost knife fish Apteranotus albifrons Gymnotidae PD
89 Glass knife fish Eigenmannia virescensGymnotidae PD
(PE- Propagation easy; PD-Propagation difficult)

4. PLANNING AND IMPLEMENTATION

The success of any entrepreneur depends on planning the business
in terms of site selection, successful layout and design of the breeding or
rearing unit. Once the unit is established in any site and later on found
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uneconomical due to unavailability of certain important facilities such as

water and power. Beautification will be difficult. Therefore, proper planning
is required. At present the variety of commercial enterprises producing
ornamental fishes is varied and diverse as the species produced. The degree
of intensification and species farmed depends on following aspects.
 Capacity building is a prerequisite before starting an ornamental
fish unit.
 The minimum land are required is 500-1000 square feet for a
small scale unit whereas 1 acre and more for large scale farming
in which few earthen ponds are to be excavated for some species
such as Koi carps, Gourami, and barbs
 Site selection is one of the main criteria where the farmer should
select a cool environment for the culture and breeding.
 Breeding and rearing unit should be made near a constant supply
of clear water source and with electricity.
 In cold climates farming is too expensive as the water has to be
kept warm to culture tropical fish. The tropical climates favour the
production rate because of year round breeding, probability as
successful rearing and better growth. Hence, it a prerequisite for
the entrepreneur to select the species accordingly.
 The selection of candidate species depends on the water quality of
that area as species which prefers either soft water or hard water
for breeding at the same time. There are species that are tolerant
to a wide range of water conditions. For example all the live bearers
prefer hard water- alkaline. Egg layers such as goldfish, gourami,
danio, catfish, rosy barb and fighter etc. can tolerate wide range of
water condition. Species such as angel, discus, tetras, Oscar, Loach
prefers soft -acidic water. Therefore, water quality need to be
checked.
 In certain areas, some species are difficult to breed, where there is
a severe problem of water quality due to physico-chemical factors.
Therefore, site selection for establishing ornamental fish farms is
important.
 Bio-filtration unit is a prerequisite for smooth functioning of an
ornamental fish culture and breeding unit.
 The brood stock selected for breeding should be of superior quality,
so that good quality fish seed could be produced. If brood stocks
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are not available in an area, one can think of rearing healthy smaller
fish in to brood stock.
 Brood stocks can be allowed to breed for not more than two years.
Fresh stocks from different source may be added in every two
years to the selected parent stocks to improve the breeding efficiency
and produce healthy offspring.
 The small fish breeder should concentrate preferably on one species
so that it helps the breeder to develop expertise on the particular
species and good quality fishes can be produced as per the market
demand.
 The availability of agro-based byproducts facilitates the preparation
of pelleted diet for the fish. For preparing a pelleted diet, a mini
pelletiser may be a requirement.
 The breeding and rearing unit may be established preferably nearer
to an airport/railway station, bus stand etc. for easy transportation
for export and domestic market
 The breeders should develop market relations with pet/ retail shops,
potential farmers, vendors dealing with ornamental fish, marketing
network, etc. to facilitate the process of selling/procuring new brood
stocks.
 A committed entrepreneur should always ensure regular contact
with the recent research developments in the field and attend training
and have exposure visits.
 All new incoming fishes should be quarantined from resident stock.
Movement of fishes should be restricted from a suspected or
unknown disease status area.
 Few quarantine tanks are required little away from the unit so that
proper observations can be made on heath aspects.
 If any abnormal behaviour is observed in any culture tanks then
the fishes needs to be isolated immediately. If mass mortality occurs,
express opinion has to be sought as the lead fish as well as
equipments water be dispersed.
5. RECENT UPCOMING DEVELOPMENTAL PROJECTS IN
INDIA
5.1 Launching of Network project by ICAR
By keeping the Indian trade and export in concern, Indian Council
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of Agricultural Research has come out with a network project taking all the
expertise of ICAR fisheries research Institutes like CMFRI, CIFA, CIBA,
CIFE, CIFRI and DCFR, irrespective of Marine, brakishwater, coldwater
and freshwater indigenous species for development of captive breeding
technology besides linking the entrepreneurs for production of ornamental
fish. The productions of high value exotic ornamental fishes were also
taken in to the consideration. The net work project was launched at CMFRI,
Cochin on 25th July2018 for coming 4-5 years.
5.2 Aquatic rainbow technology park, Chennai
Now with the the facility developed by Fisheries College and
Research Institute (FCRI), Ponneri in Tamil Nadu, the second largest exporter
of ornamental fish after West Bengal. After its completion, the technology
park would be handed over to breeders and farmers of ornamental fish on
lease for three years. the concept is being developed by Fisheries College
and Research Institute in Ponneri (Tamil Nadu) with MPEDA as part of
the steering committee for the project. It is expected to cater to the needs
of 200 to 250 ornamental fish culturists, providing advanced infrastructure,
and modern production technologies for ornamental aquaculture, besides
offering assistance in skill-development.
The project’s components are multispecies ornamental fish hatchery
(10 units), indoor raceway systems (10 units), outdoor raceway cum RAS
systems (10 units), live feed culture nit (1 unit), disease diagnostic laboratory,
and quarantine (2 units). An exclusive mall of about 50 retail shops selling
both indigenous and exotic ornamental fish species will come up on the
campus, and the CM had laid the foundation for that as well. It is expected
to compete with Singapore, which remains on top of the ladder in terms of
the sale of ornamental fish.
5.3 CIFA- The gateway of ornamental fisheries
CIFA has successfully bred and standardized the successful rearing
of 16 indigenous ornamental species from NEH, Eastern and Southern
Western ghat region. They are barbs, danios, rasboras, catfish, eel, black
carp and chameleon fish. Recent achievement of captive breeding technology
of an endangered fish Dawkinsia tambraparniei has been successful at
CIFA leading to commercial production. Larval rearing of Ompak pabda
is successfully done by the Kalyani centre of CIFA leading towards
commercialization as some of their food fishes also have ornamental value.
The catfish, Mystus vittatus, tyre truck eel, Mastocembalus armatus,
yellow or sun catfish (Horabagrus brachysoma) which are successfully
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bred at CIFA also come under this category. Development of “Shining

barb” through selection process is one of the major achievements of CIFA
and in ornamental fish industry, now under field trial in a private company
at Udaipur, Rajasthan. Development of CIFACURE, a medicine for
controlling fungal and bacterial diseases is gaining the momentum in many
states of India commercialized through a Private company based at
Bhubaneswar. CIFA is playing major role for conducting research and
training programmes on freshwater ornamental fish breeding and culture in
the country by conducting several national level training programmes both
in and off-campus comprising more than 2000 participants from all over the
country.
CIFA has developed a feed for some of the commercial varieties
of ornamental fish containing 40% protein. Further, a pigment-enriched fish
feed for rosy barb and gold fish for enhancing colours in fish has also been
formulated. Institute has also made a documentary film on ‘Ornamental
fish breeding and culture’ with the collaboration with SAARC Agricultural
Information Centre (SAIC), Dhaka, Bangladesh for SAARC member
countries. CIFA has also given the technical input for making two
documentary films by UNDP and GRAMSAT. A comprehensive report
has been prepared for UNDP for development of ornamental fish farming
and trade in Orissa state. Odisha based local television channels and All
India Radio also popularizing the sector with the help of CIFA.
As regard the North-Eastern region, the Institutes regularly conduct
the training programmes as also awareness programmes to conserve and
breed the important ornamental fish species. To popularize ornamental fishes
in the North East region Four (4) demonstration portable breeding units
have been established at Killing, Meghalaya; Itanagar, Arunachal Pradesh;
State Fisheries Department, Dimapur, Nagaland and Ecology and
Environmental Science Department, Assam University, Silchar. Few
progressive farmers of Assam are engaged in ornamental fish production
after undergone training at the Institute.
6. STEPS REQUIRED TO DEVELOP ORNAMENTAL FISHERIES
 Standardization of breeding technology of important Indian
ornamental fishes for conservation and export with the guidelines
of Green certification.
 Standardization of high value ornamental fishes within the purview
of NBFGR guidelines.
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 Breeding and seed production of commercial varieties of important

ornamental fish through backyard and entrepreneurial level for
domestic trade.
 Standardization of various live food production system and supply is
important, hence research and popularization is necessary.
 Development of a common fish feed for omnivorous fishes, with
colour enhancers by enriching natural carotenoids available in our
natural resources
 Development of ornamental fish villages in different parts of the
country by involving the State Governments and other Stakeholders.
 Development of world class public aquaria’s in every state capital
especially in major metropolitan cities for the public, students,
entrepreneurs and hobbyist for popularization.
 Good quality stocks of important commercial varieties should be
available in India for farmers
 Development of large scale hatcheries in every State Fisheries
Department for seed distribution for growers.
 Development of a National Centre on ornamental fisheries, attached
to any National Institute with a mandate of exclusive research on
ornamental fish production
 Development of trained manpower on breeding and farming practice
with a exposure to Asian countries such as Singapore and Malaysia
is essential.
 Unemployed youths and rural women are to be encouraged for
production and trade.
 With the concept of “Students Ready”, more number of students
are to be encouraged for research by Educational Institutes.
7. IMPORTANT ASPECT OF WATER QUALITY
The degrees of hardness have several biological effects upon aquatic
life. Bicarbonates tend to prevent a solution from changing acidity. Soft
water, lacking this protection, may become particularly acidic when much
carbon dioxide is present; such a change creates stress for organisms. For
soft water species excessive hardness causes an organism problem in
absorbing substances through its delicate membranes. This is most true of
the sensitive naked cells of eggs and milt, so that soft water has been found
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to play a vital role in the successful reproduction of many species of

freshwater fishes. Thus, at least for purposes such as fish breeding, a soft
solution is desirable.
To maintain soft water, all sources of calcium carbonate such as
calcareous rocks, gravels, coral, broken shell and algae must be kept out of
the aquarium system whilst using only soft water initially and during
exchange. Conversely, presence of such sources will preserve the water
hardness. Some of the important water quality parameters and their optimum
ranges for tropical aquarium fish are presented in the table below:
Table-2(a) Water quality parameters for ornamental fish
Temperature 24-28oC
pH 7.0-8.5
CO 2 < 5 ppm
Alkalinity 75-120 ppm as CaCO3
Hardness 60-100 ppm as CaCO3
Dissolved oxygen 6.0-8.0 ppm
Free ammonia <0.05 ppm
Ionized ammonia <0.1-0.4 ppm

Table 2 (b) Species preferable for different types of water quality

Water Quality (Hardness) Species Preferred
Soft water (Hardness < 100 ppm) Tetra’s, Barbs, Gourami’s, Corydoras
Hard water (150-350 ppm) Live bearers, Cichlids, Betta’s
Above 350-1000 ppm Gourami’s, Rosy barb, Danio’s, Gold fish,
Koi carp, Siamese Fighter, etc

8. PRODUCTION SYSTEM
There are two types of production system existing in any aqua-
farming practice. First type is production through breeding and larval rearing
up to 2-3 months and that could be possible by constructing cement tanks
of various sizes meant for breeding and larval rearing. The second type is
culture/ farming to produce fish from larvae to marketable size for a period
of 3-6 months of rearing either in cement tanks or in pond culture system
depending upon the species. The farmer may go for any one of the above
production system for better result. Accordingly, the farmer or entrepreneur
194

has to decide to take up the breeding/culture or both as per his skilled

technical manpower. However, the small scale farmer in a back yard dealing
with small fishes like livebearers may not come in the above categories.
8.1 Pond cultures of some ornamental fish
Some of the ornamental fish can be cultured in earthen ponds, the
culture practice being followed are similar to conventional fish culture. The
technique is extensive and is characterized by low stocking densities and
with a heavy emphasis given on live food (plankton) production. Due to a
low labour requirement, pond culture is one of the cheapest production
methods but the entrepreneur enjoys limited control over the culture system.
The culture system in such a case must be provided with proper guard
against predating animals such as cormorants and snake. Small water bodies
such as tanks, cisterns and small sized lined pond are most suitable for
‘pond’ culture of ornamental fish. Small tanks or cisterns are suitable for
breeding purpose. For rearing, little larger sized tanks/cisterns are preferable.
Small sized lined ponds are suitable for brood-stock. Most significantly, the
size of tank/cisterns/ponds depends on the different species to be cultured,
though in certain cases breeding/culture practice being employed could
also be considered. However, the species like Koi carps, normal gold fishes,
Gouramies, Cat fishes and other hardy fishes can be very well cultured in
earthen tanks, provided all facilities for controlling the predators are existing.
There are farmers in Bengal, producing many egg layers and livebearers
together in pond system and as per the need they supply to the venders
without acclimatizing them in aquarium conditions and resulting large mortality
at the hobbyist tank.
9. ECONOMICS OF ORNAMENTAL FISH BREEDING AND
CULTURE
The economic viability is the foundation of the any popular and
successful enterprises. On the basis of the business scale, the ornamental
fish farms can be categorized as small scale or large scale. The large
scales are further divided into live bearers and egg layers units. The small
scale units are low investment backyard enterprises with low intensity of
production whereas, the large scale commercial enterprises involve higher
cost and returns. The detailed economics of three categories of the
ornamental farms are presented below.
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Table-3.Economics of small-scale breeding and rearing for live-bearer ornamental

fish
1. a) Fixed Capital Amount
(Rs.)
Low-cost shed of 300 sq. ft. area (bamboo frame with net covering) 10,000
Breeding tank (Brick walled 6’ x 3’ x 1’6" @ Rs. 2500/tank (4 nos.) 10,000
Rearing tank (Brick walled 6’ x 4’ x 2’0" @ Rs. 2800/tank (2 nos.) 5,600
Brood stock tank (Brick walled 6’ x 4’ x 2’0" @ Rs. 2800/tank (2 nos.) 5,600
Larval tank (Brick walled 4’ x 1’6" x1’0" @ Rs.1200/tank (8 nos.) 9,600
Bore-well facility with 1 HP Pump 8,000
Oxygen cylinder with accessories (1 no.) 5,000
Sub-total 53,800
b) Recurring Expenditure (for one year)
Brood fish of guppy, molly, swordtail & platy (800 female & 5,000
200 male @ Rs. 5.00/pc.)
Feed 150 kg/year @ Rs. 30/kg 4,500
Different types of nets 1,500
Electricity and fuel @ Rs. 250/month 3,000
Wages for labour (@ Rs. 1000/month) 12,000
Miscellaneous (chemicals, medicine, packing material, gas cylinder/ 2,500
filling, perforated plastic breeding basket etc.)
Sub-total 28,500
2. Total Expenditure
Recurring cost 28,500
Interest on fixed cost (12% per annum) 6,460
Interest on recurring cost (12% half yearly) 1710
Depreciation (20% of fixed cost) 10,760
Total 47,430
3. Gross Income
Sell of 76,800 nos. fish @ Rs.1.5/pc, reared for one month (@ 40 nos./ 1,15,200
female/cycle from 3 cycles/year, and considering survival of 80%)
4. Net Income (Gross income-Total expenditure) Rs. 76,800-43,210 67,770
5. Monthly income 5,647

Say 5500
196

It is estimated that, within a year’s time of three breeding cycle, a

beginner may earn a sum of Rs. 5500 per month. If a farmer does the
breeding and rearing work single-handedly, he/she can add the labour cost
into the income. Upon acquiring further expertise, the farmer can increase
his/her income by many ways, such as by increasing the number of breeding
cycle per year, standardizing the overall hatchery procedures that would
further reduce the expenditure on feeding, and mastering upon the breeding
techniques to increase fry/young ones production in each cycle. Therefore,
the monthly income of the three thousand rupees is the most conservative
estimation of the economics of the enterprises. The farmers can earn upto
10000 rupees per month with the same infrastructure by developing
expertise, improving efficiency and better price. This income can be
considered to be high compared to any other similar enterprises.
Table-4.Economics of large-scale ornamental fish breeding and rearing for live-
bearers
1. Investment Amount
(Rupees)
a. Fixed Capital
Land required 1 ha 5,00,000
Shed with electrical supply (4000 sq. ft.) 8,00,000
Breeding tanks (Brick walled, 6’ x 3’ x 2’, 24 nos @ Rs. 2500/tank) 60,000
Rearing tank (Brick walled, 8’x4’x2’ @ Rs. 4000/tank; 30 nos.) 1,20000
Brood stock tank (Brick walled 6’x3’x2’ @Rs. 2500/tank; 40nos.) 1,00,000
Larval tank (Brick walled 3’ x 2 x1’ @Rs.1000/tank; 20 nos.) 20,000
Pump, overhead tank and water supply facility 1,50,000
Air blower and other aeration systems 1,50,000
Sub-total 19,00,000
b. Recurring expenditure
Brood fish (6000 female, 2000 male @ Rs. 5.00 /pc for each
livebearer (potential reproductive period two years) 40000
Feed (600 kg/year @ Rs. 30/kg) 18,000
Nets and other materials 25,000
Wages for labourer (@ Rs. 5000/month x3 nos) 1,80,000
Miscellaneous 25,000
Sub-total 2,52,000
 197

2. Total Expenditure
Recurring expenditure 2,52,000
Depreciation (10% of capital cost) 1,90,000
Interest on capital cost (12%) 2,28,000
Interest on recurring expenditure (12% for half yearly) 15120
Total 6,85,120
3. Gross Income
Fish sale (for 6,48,000 nos. @ Rs 3.00/piece) (Considering 90% survival
from 7,20,000 seed produced from 4000 female in 3 times in a year) 19,44,000
4. Net Income (Gross income-Total expenditure) 12,58,880
5. Monthly income 104906
Say 1,00,000

Table-5. Economics of large-scale ornamental fish breeding and rearing unit for
Egg layers
Species maintained: goldfish (Red cap, Oranda, Subhunkin and Black moor)
1. Investment Amount
(Rupees)
a. Fixed Capital (Land requirement 1.5 ha) 7,50,000
Shed with electrical supply (5000 sq. ft.) 10,00,000
Broodstock tank (Brick walled 6’x3’x2’ @Rs. 2500/tank; 30 nos.) 75,000
Breeding tanks (Brick walled, 5’ x 3’ x 2’, @ Rs. 2000/tank; 30 nos) 60,000
Larval tank (Brick walled 3’ x 2 x1’ @Rs.1000/tank; 50 nos.) 50,000
Rearing tank (Brick walled, 8’x 4’x2’ @ Rs. 4000/tank; 60 nos.) 2,40,000
Earthen ponds (0.05 ha 2 nos)/large brick walled tanks (50 sq. m 6 nos) 3,00,000
Pump, overhead tank and water supply facility 2,00,000
Air blower and other aeration systems 2,00,000
Generator, gas cylinder and other requisites 1,50,000
Sub-total 30,25,000
b. Recurring expenditure
Broodfish (3000 female, 4000 male @ Rs. 50.00 /pc) 3,50,000
Feed (1,500 kg/year @ Rs. 50/kg) 75,000
Nets and other materials 50,000
198

Wages for labourer (@ Rs.5000/month x 4 nos) 2,40,000

Miscellaneous including power, fuel etc. 3,00,000
Sub-total 10,15,000
2. Total expenditure
Recurring expenditure 10,15,000
Depreciation (10% of capital cost) 3,02,500
Interest on capital cost (12%) 3,63,000
Interest on recurring expenditure (12% for half yearly) 60,900
Total 17,41,400
3. Gross Income
Fish sale (for 12, 00,000 nos. @ Rs 5/ piece) (Considering breeding
success in 2000 female with average fecundity of 1000/fish once in
a year 60% survival from 20,00,000 seed produced) 60,00,000
4. Net Income (Gross income-Total expenditure) 42,58,600
5. Monthly income 3,54,883
Say 3,50,000

10. CONCLUSION
A successful economic enterprise requires lot of dedication, hard
work, sincerity and timely marketing of the produce. So also in ornamental
fish, the success depends on the investment, species selection, demand,
and proper marketing. The model economic analysis of the various types of
the ornamental fish farms presented here are indicative, and average
estimation. The actual profitability varies from the place to place depending
on the condition and efficiencies in the operation and management of the
farm. As the enterprise involves live specimen, the involvement of the risk
is higher. At the same time, the ornamental nature of the product provides
opportunity to harvest comparatively higher prices then food fishes. The
demand creation and arousal of the interest of the people can fetch the
entrepreneurs’ higher prices. Therefore it is always advisable to make a
proper viable project prior to establishing any ornamental fish breeding unit
with due consultation.
Considering the proven success of involvement of women in
development of backyard enterprise in farming of ornamental fish in West
Bengal and Kerala, it is necessary that due encouragement is given for
creation of women SHGs for such enterprise. It may be interesting to note
 199

that, Malaysia with similar climatic condition like that of India has been
able to grow the industry only with small backyard units at individual levels.
Thus, development of ornament fish farming in any region, not necessarily
requires very large-scale enterprises, but a few successful clusters of back
yard units in different regions. In this regard special packages may be
provided to these SHGs and unemployed youths or Ex-service men for
establishment of such enterprise.
REFERENCES
Devashish Kar, A.V. Nagarathna, T.V. Ramachandra and S.C. Dey. (2006) Fish diversity
and conservation aspects in an aquatic ecosystem in north eastern India. Zoos’
Print Journal 21(7): 2308-2315
FAO (2005-2013). Fisheries and Aquaculture topics. Ornamental fish. Topics Fact Sheets.
Text by Devin Bartley. In: FAO Fisheries and Aquaculture Department [online].
Rome. Updated 27 May 2005. [Cited 5 March 2013]. http://www.fao.org/fishery/
topic/13611/en
Jain A.K., Saini V.P. and Kaur, V.I. (Ed.), 2016. Best Management Practices for Freshwater
Ornamental Fish Production, NFDB, Hyderabad, India. pp-171.
Singh Tarlochan and V.K. Dey. 2006. Trends in World Ornamental Fish Trade. pp-09 -18,
Souvenir· International Seminar on Ornamental Fish Breeding, Fanning and Trade.
05 -06 February, Cochin, Kerala.
Singh, T (2005), Emerging trends in world ornamental fish trade, Infofish international,
number, 3, May/June, pp.16.
Swain S. K., Bairwa M.K. and Sahoo P.K. 2017. Training manual on “Recent Advances in
Ornamental Aquaculture” (12-16 September, 2017). ICAR- Central Institute of
Freshwater Aquaculture, Bhubaneswar, Odisha, India. pp. 1-146.
Swain, S. K. and Bandyopadhyay, P (2002) Commercial Live bearing Ornamental fish
breeding: A Beginners Delight, Fishing Chimes,(June issue), Vol.22. No.3,56-60p
Swain, S.K and Das, B. K (2001). Captive mass breeding of dwarf Gourami Colisa lalia in
the cement cisterns, NBFGR-NATP Publication No. 3, Paper No. 10.
Swain, S.K, K.Madhu,Rema Madhu,G.Gopakumar (2011) Ornamental fish breeding &
culture,In: Hand book of Fisheries and Aquaculture,ICAR,NewDelhi,500-532pp.
(ISBN;978-81-7164-106-2
Swain, S.K, Rajesh, N. and A.E. Eknath (2010) Captive breeding and conservation of
Indian freshwater ornamental fish-Experience of CIFA:National seminar on
technology and trade prospects in ornamental aquaculture (Proceedings) Edt. Felix.
S pp 39-48
Swain, S.K.,D.Mallik,S.Mishra,B.Sarkar and P.Routray,(2007).Ornamental fish-a model
animals for biotechnological research. In environmental Biotechnology (Ed.Mishra
and Juwarkar) APH publ. corp. Delhi. pp-293-328.
Swain, S.K.,N.Sarangi and S. Ayyappan2010. Ornamental fish farming, DIPA (ICAR),
200

pp.145
Swain,S.K.,(2012) Freshwater ornamental fish farming and trade: A roadmap for India, In:
Anna Mercy et. Al (Eds) Ornamentals Kerala, Dept of Fisheries, Govt. of Kerala,
India, Souvenir, xiv-pp.102
Swain,S.K.,S.K.Singh,P.Routray and N.K.Barik 2008.Indigenous ornamental fishes: Status,
Issues and Strategies for propagation and conservation. e- planet, 6(2): 2, 20-22.
Swain,S.K.,Sahu,P.,Jena,J.K.and Eknath,A.E.,(2011) Development of ornamental fish
village-a success story at Landijhari (Barkot Block).Aquaculture Innovators, CIFA,
ICAR, PP. 93-99.
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Chapter
14
ESTABLISHMENT OF POULTRY AS A
PROFITABLE VENTURE
S. Malik and Sunil Kumar

1. INTRODUCTION
Poultry industry is one of the fastest growing industry in India and
registered average growth rate of 5-6% in layer and 10-15% in broiler
production during the last decade. India, with poultry population of 729.21
million (2012) and estimated more than 74,752 million eggs production (2013-
2014), ranks third largest egg producer in the world. The total poultry meat
production of the country was 1.917 million tones (2013-2014) and India
ranks 5th in broiler production in the world. Broiler chicken industry has
now occupied the second place in volume in the world just after pork. The
chicken meat represents 25 % of total meat production from farm animals.
FAO predicted that 42% of meat will be chicken meat consumed worldwide
by 2020, overtaking pork and beef.
The annual per capita consumption of egg and meat in India is only
63 and 1.56 kg., respectively (2013-2014), which is very low as compared
to world average 124 eggs and 5.9 kg. meat consumption per year. Moreover,
the recommendation of Nutritional Advisory Committee of Indian Council
of Medical Research is 180 eggs and 11.0 kg poultry meat per capita per
annum. India’s 75% of egg produce is consumed by the 25% population
living in urban and semi-urban areas. It is indicated a wide gap in availability
and demand of egg and meat, which can not be fulfilled only by the
commercial poultry sector contributing nearly 70 % of the total output. So
there is need of joint effort to establish more poultry unit in rural as well as
in commercial sector to fulfill this gap and develop poultry as profitable
venture to improve the livelihood of rural household and commercial business
202

enterprises, respectively.
2. ESTABLISHMENT OF POULTRY UNIT AND POULTRY
BASED INTEGRATED FARMING SYSTEMS
According to resources, demand and purpose, the poultry unit may
be established as rural poultry unit or commercial poultry unit. Under rural
poultry, the unit may be established as backyard, semi intensive or small
scale intensive poultry unit, may be under integrated farming system or
purely backyard system. In commercial system, it is always intensive poultry
unit specific to layer or broiler unit or may be both.
Poultry based Integrated Farming Systems:
1. Crop-livestock-Poultry-Fishery
2. Crop-Horticulture-Livestock-Poultry
3. Poultry-Fishery-horticulture
4. Poultry-fishery-Crop
Rural poultry farming may be divided into following categories as
given in table 1.
Table 1: Types of Rural Poultry Farming:
Traditional Backyard S emi Small Scale
free range poultry Intensive Intensive
Flock size 01-10 10-50 50-200 100-500
Type of breeds Indigenous Indigenous/ Improved Layers/
crossbreds broilers
Feed Resources Scavenging Scavenging & Local/ Commercial
supplementation commercial
Egg production (nos.) 30-50 50-150 80-160 250-300

2.1 Poultry Breeds and Varieties:

(A) Egg purpose:
(i) Commercial: White leghorn breed and its different strains /
varieties developed by public and private sector can be used for
commercial egg production. The age at sexual maturity of White
leghorn is 140 days and on average its egg production is 320 eggs
in a laying year. The Rhode Island Red breed can also be used for
egg production.
 203

(ii) Backyard System: The improved layer varieties have the potential
of producing 160-200 eggs in a laying year at the organized farm
conditions and 140-170 eggs in a laying year in free range
conditions. The birds have on average 1.5-2.0 kg body weight in
females and 2.5-3.5 kg. body weight in males. List of improved
varieties of poultry for egg purpose is presented in table 2.
Table.2: Improved egg purpose varieties developed for rural poultry production.
S.No. Name of the Variety Name of the Organization Breeding methods used
for the development
1. Gramapriya PDP, Hyderabad Crossing an exotic breed
with a synthetic
population
2. Krishna J. JNKVV, Jabalpur Synthetic cross
3. CARI Gold CARI, Izatnagar (U.P.) Exotic breed cross
4. CARI Nirbheek -do- Crossing an indigenous
breed with an exotic
breed
5. CARI Shyama -do- -do-
6. CARI Hitcari -do- -do-
7. CARI Upcari -do- -do-
8. Gramalaxmi KAU, Mannuthy Exotic breed cross
9. Kalinga Brown CPDO, Bhubneshwar Exotic breed cross

(B) Meat purpose:

(i) Commercial: Broiler hybrids Vencobb-100, Vencobb-400, Saguna
broiler, Hybro Hebard and Shaver stabro etc. developed by private
sector are available for commercial broiler production. These strains/
varieties can achieve 2.25 kg body weight in 40 days with feed
efficiency 1.7 kg. feed per kg. body weight.
(ii) Backyard System: The varieties developed for meat purpose have
the potential to gain 1.40-1.60 kg. body weight in 8 weeks of age in
semi intensive conditions but the dual purpose varieties may gain
only 1.20-1.40 kg. body weight during the same period.
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Table 3: Improved dual and meat purpose varieties developed for rural poultry production.
S.No. Name of the Variety Name of the Institute developed variety Purpose
1. Vanaraja PDP, Hyderabad Dual
2. Krishi- Bro PDP, Hyderabad Meat
3. CARI Dhanaraja CARI, Izatnagar (U.P.) Meat
4. CARI Devendra CARI, Izatnagar (U.P.) Dual
5. Giriraja UAS, Bangalore Dual
6. Swarndhara Vety Ani. & Fishery Univ., Habbal (Karnataka) Dual
7. Nicorock CARI, Portblair Dual
8. Nishibari CARI, Portblair Dual
9. Nandanam – 1 & 2 TANUVAS, Chennai Dual
10 Krishnapriya KAU, Mannuthy Dual
11. Gramashree KAU, Mannuthy Dual
12. Kuroiler Kegg Farms, Delhi Dual
13. Satpuda Deshi Yashwant Agro Tech, Jalgaon Dual

14. AVM Coloured AVM Hatchery, Coimbatore Meat

2.2 Storage of fertile Eggs:

The temperature for holding fertile eggs before incubation varies
10-21°C. At very low and very high temperature, the eggs do not hatch
well. Stored the eggs with broad end up, hatch better.
2.3 Hatching of eggs:
Hatching is the production of chicks from fertile eggs. In chicken
hatching period is 21 days. Hatching of fertile eggs can be done in two
ways.
(i) Natural hatching: When the fertile eggs are placed under the broody
hen. The birds provide heat from her body to the eggs. The eggs
also get humidity (moisture) from nest as well as from the soil and
oxygen from the air. Birds have natural instinct for rearranging
(turning) of eggs to make certain that they are well covered and
uniformly getting temperature. The native birds (desi) hens are
excellent for this purpose. This method is suitable only for small
scale chick production because one hen can hatch only 10-15 eggs
 205

at a time.
(ii) Artificial hatching: By this method, incubators are used for hatching
of eggs. Incubators are more efficient and suitable for large scale
chick production.
In incubators system the total incubation and hatching period is
divided into two parts. The first period is called incubation period, which is
18 days and second period is called incubation and hatching period, which
is 3 days long. The requirements of temperature and humidity for both the
periods are slightly different. For successful hatching four factors are very
important.
(i) Temperature (ii) Humidity
(iii) Gaseous environment (iv) Turning of eggs
Incubation period: The temperature in incubation period is maintained in
between 99.5 – 100.5ºF (37.5 to 38.0ºC). Very high or low temperatures
reduce hatchability by increasing embryonic mortality, weak and deformed
chicks. The relative humidity should be 60 % during incubation period. Dry
and wet bulbs thermometers are used to determine humidity. The reading
of the wet bulb should be around 85. The oxygen concentration should be
21 %, which is generally available in normal air. More or less oxygen
concentration decreases hatchability. On average the CO2 concentration
should not go beyond 0.5 %. The oxygen and CO2 concentrations are
maintained by proper ventilation and exhaust system in the incubator and
hatcher. Turning of the eggs should be done at least 4 times in a day. All the
incubators are provided mechanism for automatic turning of eggs, 8 times
in a day. Turning of eggs is essential during incubation in order to prevent
the embryo from adhering to the shell membrane in the early stage of
incubation and in later stage of incubation to avoid adhesion between yolk
and allantois. Turning of eggs improve hatchability.
Incubation and hatching period: The eggs are transferred to a separate
machine called Hatcher during this period. The eggs with live embryos are
only transferred to the hatcher. The temperature of the hatcher is maintained
at 98ºF (37.0ºC) and relative humidity is maintained at 70- 80%. The oxygen
and CO2 requirement is same as in the case of incubation period. The turning
of eggs is not required during this stage.
For small scale chick production, machines are available in which
incubation and hatching (21 days) can be performed in the same machine.
Eggs are set in upper trays for incubation during first 18 days and shifted in
206

lower trays during the last three days for hatching. However, hatchability is
slightly lower in comparison to separate incubator and hatcher.
2.4 Candling of Incubated eggs:
The eggs should be candled on 7th day to remove infertile eggs and
th
on 18 day to remove dead germs. Candling is performed in dark room
using Egg Candler fitted with electric bulb, and according to behavior of
light, the eggs can be classified into fertile and infertile eggs as follows.
Transparent eggs - Infertile eggs
Translucent eggs - Dead germ
Opaque eggs - Live embryo
Eggs only with live embryos should be transferred into the hatcher
machine.
2.5 Brooding of chicks:
Brooding is the care and management of new born chicks for
successful rearing without hen. During this initial phase of brooding, young
chicks can not regulate their body temperature so they require artificial
heat to sustain body temperature. The young chicks needs shelter /brooder
house upto 6 weeks of age to save from predators viz. crow, rats, snake,
fox, stray dog and raccoon. Brooder house should be separate from other
houses. There should be adequate ventilation in the brooder house to maintain
the balance of oxygen and carbon dioxide. Direct and chilled wind of high
speed should be avoided.
Brooder house should be thoroughly cleaned and disinfected with
a disinfectant solution (kohrosolin/Phenyle) much before arrival of chicks.
All the equipments, feeders, waterers and hovers should be thoroughly
cleaned and kept in working order. Poultry diseases are highly contagious
therefore movement of workers should be restricted in brooder house. There
should be 2-3 inches thick layer of dry saw dust /rice husk or other locally
available material in the brooder house. The moisture of the litter should be
20-25%, higher moisture may create ammonia problem, which cause ill
effect on chicks.
Optimum temperature of brooder house maintains good growth
rate and reduce mortality in chicks. The starting temperature should be
95°F during the first week and it should reduce 5.0°F per week during the
successive week till 70°F. The heat source of 2 watts /chick is adequate
upto 6 weeks of age. The season of brooding also define the requirement
 207

of heat. Monitoring chicks’ behaviour whether they are comfortable or not

is very essential, if the temperature is high than required, the chicks will
stay away from the source of heat; if it is low the chicks come closer to the
source of heat. Brooders should be warmed up 24 hours before the chicks’
arrival. The chick guard may be prepared by locally available material. The
per chick brooder space is 45-65 cm2.
Table 4: Floor, Feeder and Drinker space of different categories of chicken.
Chick Grower Adult
2 2
Floor space ½ -1.0 ft 2.25 ft 3.25 ft2
Feeder space (linear cm) 2.5-6.50 6.5-10.0 14 .0
Drinker space (linear cm) 0.50-1.50 1.50-2.50 2.50

2.6 Nutritional requirements of poultry:

(A) Average per day requirements of feed and water for the birds:
The average per day requirements of feed and water of different
age groups of birds are mentioned in the table 5. The farmers should know
per day requirements of feed and water so that according to the number of
birds’ farmer may arrange full requirements of feed and water. If birds will
not provided water for two days, the birds start moulting and cease egg
production. It requires at least 10-15 days to restart egg production if it is
good laying season. Water is very important for the poultry; a bird can drink
twice as much water in weight as it eats in feed. The quantities mentioned
in table may be slightly varying according to season and breed / variety of
birds.
Table 5: Average per day requirements of feed and water.
Age (Weeks) Amount of Water/100 birds Feed consumption/bird
(in liters) (in gms.)
0-4 2.8-4.0 6-30
5-8 12-14 32-50
9-12 20-25 55-70
13-16 35-40 70-80
16 -20 45-50 80-100
20 & above - do - 100-150
208

(B) Feeding requirements of Poultry:

The ISI requirements of chicken feeds of different categories of
birds are presented in table 6. Feeding balance feed is essential, because,
when feeds lacks essential protein type, minerals and vitamins, much more
will be eaten, and much less will be produced.
Table 6: ISI requirements of chicken feeds.
Broiler Broiler Layer Grower Layer
Starter Finisher chick starter (7-20 Wks) (21-80 Wks)
(0-5Wks) (6-9 Wks) (0-6 Wks)
Energy (Kcl/Kg) 2900 3000 2700 2700 2800
Protein (%) 22.0 19.0 22.0 16.0 18.0
Crude Fibre (%) 6.0 6.0 7.0 8.0 8.0
Calcium (%) 1.0 1.0 1.0 1.0 2.75
Available 0.5 0.5 0.5 0.5 0.5
phosphorus (%)
* Mineral mixture and vitamin mixture as per ISI.

2.6.1 Energy Sources:

The energy sources are used in feed at the levels of about 50-70
percent. Moreover, they also add about 25-35% of total protein requirement
of poultry. All the monocotyledon crops are the good source of energy. The
major energy sources are Maize, Barley, Rice, Rice polish, deoiled rice
polish, Oat, Wheat, Wheat Bran, Pearl millet, Sorghum, Sal seed, Broken/
Damaged food grains, Tapioca meal, Hominy fees, dried poultry waste,
molasses, Mango seed kernel and small millets.
Yellow maize is the major source carotene (precursor of vitamin
A) and xanthophylls, a pigment deposited in broilers and egg yolk. Due to
fibre and manganese in oats, mixing of oats in the feeds reduces the incidence
of cannibalism, feather picking and hock disorders. Wheat bran is excellent
source of manganese, iron and a good source of riboflavin, pantothenic
acid, choline, niacin and thiamine. Germ-free caged layer droppings can be
used as feed ingredient for poultry. It is high in calcium and phosphorus and
has about 10-12% of protein.
Fats as Energy Source:
Mutton fat, Beef tallow, lard and edible oils. 3-8 % included in the
ration.
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Protein Sources:
The protein of the feed supply amino acids to the body. The quality
of the protein of particular ingredient is dependent on the composition of
amino acids in the ingredient. So the amino acids are divided into two groups’
viz. essential amino acids and nonessential amino acids. The maximum
protein synthesis occurs, when all the essential amino acids are present in
the feed in proper proportions as required for growth and production. The
excess of the amino acids goes waste as the amino acids are not stored in
the body.
Vegetable Protein Sources:
All the dicotyledonous crops (mainly pulses and oil seeds) are the
good source of protein. Soybean cake, Ground nut cake, Mustard cake,
Cotton seed cake, Maize gluten meal, Maize gluten feed, Cluster bean
meal, Sesame meal, Sunflower meal, Ram til cake, Linseed meal and
Penicillin mycelium waste.
Several vegetable protein sources have anti-nutritional factors.
Antitrypsin in Soybean meal, thioglucoside (sinigrin) and erucic acid in
mustard meal, gossypol and cyclopropenoid fatty acids in cotton meal, and
antipyridoxine factor and cyanogenic glycoside in the linseed meal are most
potent examples. The vegetable protein sources in common are deficient in
both the limiting amino acids (lysine and methionine).
Animal Protein Sources:
Fish meal, Meat meal, Meat cum bone meal, blood meal, liver residue
meal, hatchery by product meal, feather meal and silk worm pupae meal.
The animal protein sources contain higher levels of limiting amino
acids (lysine and methionine) than vegetable protein sources. The animal
protein sources are good source of calcium and phosphorus and supply
vitamin B12 through natural sources. Lysine requirement is more for growth
than for egg production and a deficiency in diets not much affecting egg
production. Fish meal is chief source of all the required amino acids and
good source of riboflavin, pantothenic acid, choline, vitamin B12, calcium
and phosphorus.
Mineral Supplements:
Oyster shell meal (38% Calcium), Bone meal, Ground limestone
(Calcium) and Di-calcium phosphate. Do not give much salt, a little is put in
the feed if required, too much can become poison for poultry.
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(C) Upper limit (percent) of feed ingredients used in poultry rations:

For formulating low cost ration, farmers should know how much
maximum an ingredient can be mixed in the poultry ration. By this way
costly feed ingredient may be avoided by using cheap locally available feed
ingredients for reducing feed cost without hampering the production level.
Table 7: Upper limit of different feed ingredients.
Ingredients Chicks-/ Ingredients Chicks-/
Growers/ Growers/
layers layers
Energy Sources: Vegetable protein sources:
Maize 60 Groundnut cake/ Soybean meal 40
Wheat/ Pearl millet 50 Groundnut cake (Deoiled)/ 20
Safflower cake/ Linseed meal/
Maize gluten meal/feed
Rice Polish 40 Mustard cake 10
Sorghum (White)/ 20-40 Cotton seed meal 5
Barley
Tapioca meal 25 Animal protein Sources:
Rice polish (Deoiled) 20 Fish meal 15
Oats 10-20 Liver residue meal 10
Wheat bran 10-15 Meat meal 5-10
Poultry manure meal 10 Silk worm pupae meal/ Meat 6
cum bone meal
Molasses/Salseed 5-10 Blood meal/ Feather meal/Poultry/ 5
meal (deoiled) hatchery by product meal.
Fats as Energy Sources:

Mutton fat, Beef 3-8

tallow, lard and
edible oils

(D) Suggested rations for Layers and Broilers:

Some of the suggested rations for egg type and meat type chickens
are given below.
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Table 8: Suggested rations for Layers.

Ingredients Starter (0-6 Wks.) Grower (7-20 Wks.) Layer (above 20
(kg./100 kg.) wks.)
1 2 1 2 1 2
Maize 10.0 44.10 27.0 — 35.0 20.0
Broken Rice 38.0 — — 41.0 — 25.0
Rice polish — 18.0 40.0 40.0 30.0 30.0
Wheat bran — 6.80 15.0 — 3.30 —
Rice bran (deoiled) 8.1 — — — — —
Groundnut cake 40.0 6.0 5.0 11.0 10.0 10.0
Maize gluten meal — 6.0 5.0 — 10.0 —
Mustard cake — 6.0 — — — —
Fish meal/fish offal 2.50 12.0 6.0 6.0 4.0 5.0
Meat meal — — — — — 6.0
Bone meal 1.60 2.0
Lime stone — — 0.60 1.0 5.0 1.0
Methionine 0.06 — — — — —
Choline chloride 0.06 — — — — —
Antibiotic & 0.10 — — — — —
coccidiostat
Salt 0.45 0.50 0.80 0.50 0.50 0.50
*Minerals Mixture. 0.68 0.56 0.50 0.40 0.50 0.40
*Vit. premix 0.05 0.04 0.10 0.10 0.10 0.10
* Mineral mixture and vitamin mixture as per ISI.

1. Broken Rice, deoiled rice bran or broken rice can be mix in place
of maize as a principle source of energy upto 80 %.
2. Groundnut meal can be replaced with Til cake (100%), sunflower
(100%) or mustard (50%).
3. Rice polish can be replaced with rubber seed cake, tapioca or mango
kernel cake.
4. Rice bran (deoiled) can be replaced upto half with by products
from pine apple pulp, banana peel, tea garden waste, cabbage waste,
jack bean, apple waste, orange pulp.
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Table 9: Suggested rations for Broilers.

Ingredients (kg./100 kg.) Starter(0-5 Wks.) Finisher(6-20 Wks.)
1 2 1 2
Maize 14.0 49.0 15.0 50.0
Broken Rice 30.0 — 40.0 —
Rice polish 10.0 — — 20.38
Rice bran (deoiled) — 8.21 — —
Groundnut cake 14.0 20.0 10.0 13.0
Sunflower cake 14.0 20.0 12.0 —
Animal fat 3.0 — — —
Fish meal/fish offal 10.0 — 10.0 10.0
Blood meal 3.18 — 1.30 —
Silk worm pupae meal — — — 5.0
(deoiled)
Bone meal 1.0 — 0.60 1.0
Limestone — — 0.60 —
Methionine 0.06 0.06 — —
Choline chloride 0.06 0.06 — 0.02
Antibiotic & Coccidiostat 0.10 0.10 — —
Salt 0.50 0.45 0.40 0.50
*Minerals & Vit. Mixture. 0.10 2.12 0.10 0.10
* Mineral mixture and Vitamin mixture as per ISI.

1. Broken Rice, deoiled rice bran or broken rice can be mix in place
of maize as a principle source of energy upto 80 %.
2. Groundnut meal can be replaced with Til cake (100%), sunflower
(100%) or mustard (50%).
3. Rice polish can be replaced with rubber seed cake, tapioca or mango
kernel cake.
4. Rice bran (deoiled) can be replaced upto half with by products
from pine apple pulp, banana peel, tea garden waste, cabbage waste,
jack bean, apple waste, orange pulp.
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(E) Feeding of Rural Poultry production

Rural germplasm should be very efficient in scavenging waste
materials (insects, earthworms, white ants, fallen grains, kitchen waste,
green grass etc.) and should have minimum requirement of feed and
converting them into protein rich egg and meat for human consumption.
Clean drinking water should be provided, when the birds are let out for
foraging at morning and after foraging, the supplementary feed (broken
rice, kitchen waste etc.) can be provided preferably at the afternoon. The
nutritional requirements of rural poultry are much lower upto 30 % than the
commercial birds. Generally, 40-50 gms supplementary feed /bird/day is
required to sustain good production. The quantity of supplementary feed is
depends on the season, the rainy season required lower quantity of
supplemental feed being the availability of good forage and insects etc.
Nutritional deficiencies particularly energy, calcium and vitamins are
common in birds reared under backyard system. Energy deficiency can be
removed by feeding grains/ grain by-products as supplemental feed. Calcium
requirement can be fulfilled by supplementing the calcium sources (Shell
grit, Stone grit, Lime powder, Ground limestone (Calcium) and Di-calcium
phosphate, shell of boiled egg etc.) @ 3-4 gms. /day /bird. The approximate
balance layer ration can be prepared as follows. Energy source: 50-70%,
Vegetable protein source: 20-25%, Animal protein source: 3-5%, Bone meal
& lime stone: 5.0-6.5%, Salt: 0.50%, Mineral mixture: 0.50% and Vitamin
mixture: 0.10%. The maximum limits of mixing of ingredients of different
sources are given in table.7. According to availability they can be mixed as
per formula in the ration. The ration prepared by this formula can be used
as feed supplement to sustain the egg production. Extra males can be sold
at the age of 12 – 16 weeks of age, only females should be kept after 16
weeks of age. A hen lay better without a male bird and produce infertile or
vegetarian eggs. The eggs can not produce chicks but will keep in good
condition, for long time and good for consumption.
2.7 Litter Management:
The shelter of poultry required locally available litter material, viz.
Rice husk, paddy / wheat straw (2-3" size), saw dust, wood savings, dry
leaves, groundnut kernels, sugarcane waste (broken into small pieces), dry
grass or maize stalks. There may be problem of dampen in the litter in long
rainy season of N.E region. This may initiate infection in the flock so mix
hydrated lime @ 1.0 kg / 15-18 sq. ft. or Super phosphate @ 1.0 kg./ 15 sq.
ft floor space. More lime can interfere in the process of decomposition so
restrict the quantity at optimum level. Super phosphate assist in preserving
214

nitrogen level and no ammonia formation occurs. The litter is most important
component, which after one year can convert into very good compost,
which will be very useful to fertilize crops and vegetables. One poultry
shelter consisting of 10 birds can produce approx. 300 kg. poultry manure
in a year.
The other advantages of poultry litter:
(1) Litter maintains its own temperature in all weather so that it helps
to maintain the bird temperature uniformly and acts as insulator.
(2) Birds and eggs are safe with enclosed condition.
(3) Part of the feed requirement of poultry comes from the litter. The
well built up litter supplies animal protein factor (Vitamins B12) as
in fish meal, meat meal and high in riboflavin (Vitamin B2) content
so there is no need to supplement feed for these factors. It can be
mixed at high proportion into cattle feed (McArdle and Panda,
1970).
(4) Saving of labour because there is no need to clean floor daily.
(5) Some diseases are controlled by its action. Dry litter-reducing
coccidiosis than the base floor sheds. Birds control body lice by
dust bathing in the litter.
(6) It produce rich manure, has the value 3 times the cattle manure
viz. 3% Nitrogen, 2% Phosphorus, 2% Potash, 0.68% Magnesium,
0.68% Sodium and 2.70% calcium plus trace elements. Nitrogen
to organic matter ratio is approx. 1 to 33.
 8-12 kg. Grains can be increased by the use of only one kg of
nitrogen; an extra 6-8 kg grains for each kg of phosphorus and
an additional 4 kg of grain for each kg of potash.
40 birds supply one ton of deep litter in a year, which is enough
fertilizer to meet the full fertilizer needs of one acre of paddy or maize or 2
acres of sorghum or about ½ acre intensively cultivated crops, such as
vegetables. An extra ton of paddy per acre is possible from one ton of deep
litter from 40 birds.
2.8 Vaccination and Health Management:
The vaccination of birds is very essential to save the birds from
deadly viral diseases because there is no medicine for viral diseases except
vaccination.
 215

Table 10: Vaccination schedule.

Age (days) Name of the Vaccine Dose Route of
Administration
01 Marek’s disease (HVT strain). 0.2 ml Subcutaneous
4-7 New Castle disease (Ranikhet One drop Intraoccular/Intranasal
disease) - F1 / Lasota strain. (Eye/nasal)
14 day Infectious Bursal disease One drop Intraoccular/Intranasal
(Gumboro) - MB strain. (Eye/nasal)
35 day New Castle disease (Ranikhet 0.5 ml Subcutaneous
disease) – *R2B strain.
42 day Fowl Pox. 0.2 ml Wing web prick

*Repeat R2B at every 6 months interval.

2.9 Medication and Debeaking Schedule:

Regular monitoring and deworming of birds for internal parasites is
very important due to scavenging nature of birds, which exposes them to
internal parasites. Debeaking of birds is not required in rural poultry
production. The beak helps in foraging and scavenging of insect etc. in the
backyard of the farmer. But in case of more birds (100-200 or more) with
the farmers, the birds may start cannibalism or may be start eating eggs
also. Therefore, debeaking of birds in this case may be performed. The
flock may affect their growth and production performance without
deworming.
Table 11: The debeaking and medication schedule.
Age Programme
1- 4 days Electrolytes and Vitamins solution.
9-15 days Vitamins solution.
16-22 days Coccidiostate / Coximer.
23-30 days Calcium supplements (Ascal / Vetkal)
31-42 days Liver tonics, first Debeaking.
42-50 days First deworming (Albendazole/Piperazine).
13-16 weeks Second Debeaking and second deworming (Albendazole/Piperazine).

Growers & Adults Vitamins solution and Calcium supplements

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2.10 Direction for Minimizing Loss from Diseases:

(i) Keeping fresh and clean drinking water in plenty in the backyard
is most essential. It is observed that most of farmers are not
keeping water for their birds in the backyard so the birds are
taking water from dirty source of the village, which is the major
source of the infection.
(ii) Chicks should be procured from reliable source and from disease
free flock.
(iii) Watch the birds at the morning on daily basis, if the birds show
any abnormal behaviour, not consuming feed and water or
symptoms of any disease or mortality. The affected bird should
be immediately isolated from the other birds. Prompt action should
be taken to arrange treatment by Veterinary Surgeon. The
suggested medicine should be given to all the birds of the flock.
(iv) If any disease spread in the village, control your birds only in
your backyard and not allow birds of other neighbouring houses
to enter in your backyard. Keep the night shelter and backyard
area clean and disinfected. Put lime in the boundary area of the
backyard. Vaccinate the birds if the disease is viral.
(v) Birds should be vaccinated and de-wormed at regular intervals
as per the direction of Veterinary Surgeon.
(vi) It is common in backyard/rural poultry production to find different
species of poultry like chickens, ducks, turkey, etc. in the same
premises, thereby transmitting many diseases among them.
Therefore, it is better to raise different species separately.
(vii) The litter should be kept dry and the houses should be ventilated.
(viii) Balance ration should be provided as supplementary feed
preferably at the after noon, after scavenging of birds at the
morning so the birds may fulfill their maximum feeding
requirement from scavenging. The drinker and feeder must be
regularly cleaned.
3. ECONOMICS OF 100 BACKYARD LAYER FARMING
Input Cost: A. Non-recurring:
1. Poultry shed (200 sq ft) Rs. 20,000/-

2. Feeder and drinker Rs. 3,000/-

 217

Total Rs. 23,000/-

B. Recurring:
1. Cost of chicks (110 chicks @ Rs. 15/- chick) Rs. 1650/-
2. Feed cost:
(i) First 5 weeks @ 1 kg/chick, @ Rs. 30/- kg Rs. 3300/-
(ii) 6-20 weeks , 40 g./ day for 105 days, @ Rs. 30/- kg, 4.6 q. Rs. 13,800/-
(iii) 21 – 80 weeks, 50 g./day, 420 days, @ Rs. 25/- kg, 21.0 q. Rs. 52,500/-
3. Litter, electricity and water
Rs. 2,000/-
4. Medicine, vaccine etc.
Rs. 1500/-
5. Labour cost (2 hrs/day, total 136 days, @ Rs. 300/- day) Rs. 40,800/-
Total Rs. 1,15,550/-
Av. Yearly expenditure = Rs. 1,15,550 + 7,650 (1/3 of NR) = Rs. 1,23,200/-
Output:
1. Cost of eggs (150eggs/bird, @ Rs. 10/- egg) Rs. 1,50,000/-
2. Cost of poultry meat (Av. 1.50kg wt/bird, @ Rs. 150/-kg. Rs. 22,500/-
3. Cost of poultry manure (25 q. manure, @ Rs. 200/- q.) Rs. 5,000/-
Total Rs. 1,77,500/-
Net income = Rs. 1,77,500 - Rs. 1,23,200 = Rs. 54,300/-
3. ECONOMICS OF 100 COMMERCIAL BROILER FARMING
Input Cost: A. Non-recurring:
1. Poultry shed (200 sq ft) Rs. 20,000/-
2. Feeder and drinker Rs. 3,000/-
Total Rs. 23,000/-
B. Recurring:
1. Cost of chicks (100 chicks @ Rs. 20/- chick) Rs. 2,000/-
2. Feed cost: Rs. 9,900/-
(Total 3.3 kg/chick for 2 kg B.W., 330 kg, @ Rs. 30/- kg)
3. Litter, electricity and water Rs. 2,000/-
4. Medicine, vaccine etc. Rs. 1000/-
5. Labour cost (2 hrs/day, total 9 days, @ Rs. 300/- day) Rs. 2,700/-
218

Total Rs. 17,600/-

Av. Yearly expenditure = Rs. 17,600 + 1,300 (NR cost of 1 batch) = Rs. 18,900/-
Output:
1. Cost of poultry meat (Av. 2.0 kg. wt/bird, @ Rs. 120/-kg. Rs. 22,800/-
2. Cost of poultry manure (18 q. manure, @ Rs. 200/- q.) Rs. 3,600/-
Total Rs. 26,400/-
Net income = Rs. 26,400 - Rs. 18,900 = Rs. 7,500/-
Per Year net income = Rs. 7,500 x 6 = 45,000/-

4. CONCLUSION
The poultry rearing can be used as a tool for higher income,
employment generation, nutritional security as well as poverty alleviation in
the country. Poultry still has good scope for development, considering the
gap in availability and demand of the poultry products. For the sustainable
development of poultry the following steps are suggested. Firstly Breeding
technologies should be used for the development of the quality poultry
products, not only the improvement in quantity. Secondly, availability of
poultry feed is major problem in some areas of the country so formulations
of cheaper balance ration using locally available feed ingredients should be
developed on regional basis so that poultry industry can develop uniformly
in the country. Thirdly, development of thermostable vaccines for viral
diseases in small doses particularly for Ranikhet disease is essential for
avoiding the cold chain system, which is difficult to maintain in the country.
REFERENCES
Alalade, O.A. and Iyayi, F.A. (2006) Chemical composition and the feeding value of Azolla
(Azolla pinnata) meal for egg type chicken. Int. J. Poult. Sci. 5(2): 137-141.
Das, K.C., Malik, S., Prabhakaran, P. And Kalita, H.C. (2005) Performance of broiler
chicken as affected by replacement of starter ration with mixed tree leaves meal.
Ind. J. Poult Sci. 40:128-131.
Fasenko, G.M., Robinson, F.E., Danforth, B.L. and Zelter, I. (2000) An examination of
fertility, hatchability embryo mortality and chick weight in double verses single
yolked broiler breeder eggs. Canadian J. Anim Sci. 80:489-493.
Malik, S. And Singh, N.P. (2009) Strategy for sustainable rural poultry production in NEH
Region. In: Food Security and Sustainable Agriculture. PP-278-288, Published by
U-Day Publishers and Advertisers, New Delhi.
Malik, S. (2013) Rural Poultry Production: The need and strategy for sustainable
development. Westville Publishing House, New Delhi.
McArdle, A. Allan and Panda, J.N. (1970) A poultry guide for the villager. Department of
 219

Agriculture, Ministry of Food and Agriculture, Govt. Of India, New Delhi.

Sonaiya, E.B. (1995) Feeding resources for small holder poultry in Nigeria. World Animal
Review.1:25-33.
Viroji Rao, S.T. (2006) Research Priorities and Policy Options for Backyard Poultry
Development to 2020. In: Proceedings of National Seminar on “Poultry Research
Priorities to 2020. Nov., 2-3, 2006, PP-244-249, CARI, Izatnagaer-243122.
220
 221

Chapter
15
YAK HUSBANDRY BASED FARMING
SYSTEM FOR HIGH ALTITUDE AGRI-
ENTREPRENEURSHIP
DEVELOPMENT
Brijesh Kumar, M Sarkar and Vikrant Singh Chouhan

1. INTRODUCTION
The yak (Bos grunniens or Poephagus grunniens) must be
regarded as one of the world’s most remarkable multipurpose ruminants as
it thrives in conditions of extreme harshness and deprivation while providing
a livelihood for Highlanders. The major yak distribution areas in the Hindu
Kush Himalayan (HKH) lie in the high mountains in the border areas
between India and neighbouring countries. Over the past 10,000 years or
so, the yak developed on the HKH region extending over about 2.5 million
sq km. In India, yak-rearing states are Jammu and Kashmir, Arunachal
Pradesh, Sikkim, Uttarakhand, and Himachal Pradesh. The yak rearing
tract included bordering the southern slopes of the Himalayas, have a cold,
humid climate (Arunachal Pradesh, Sikkim & Uttarakhand), while the two
northerly states are cold and arid (Himachal Pradesh and J&K). Yaks are
reared on a pastoral system at 3,000- 6,000 m above MSL on alpine pastures
and grasslands throughout the Indian Himalayan regions. Yak population in
India is 76,237 in 2012 (19th Livestock census), which is declined by 7.6 %
as compared to the previous census; distributed in Ladakh region of J & K
( 54 398), Arunachal Pradesh (13,758), Sikkim (4,036), Himachal Pradesh
(2,895) and Darjeeling part of West Bengal (1,088). Various social and
ethnic groups of pan-Himalayan India are associated in yak rearing. In the
Ladhak region of J & K state, yaks are raised mainly by the Buddhist as
222

well as Muslim nomads. In Himachal Pradesh yaks, are raised by Buddhist

and Hindu community people. In Sikkim, yaks are mostly reared by Bhutia
tribe of Buddhist faith. In Arunachal Monpa tribe of Buddhist faith rears
yaks. Yak is treated as wealth and sacred animal and worshipped as God
by the people of the snowbound Himalayan region.
The yak rearing, being a transhumance pastoral system of grazing
on alpine pasture, is facing the challenges like harsh geo-climatic conditions
with an acute nutritional crisis during winter when the alpine pasture is
covered with heavy snow and rearers have to come down to lower altitude
near the villages. At that point of time yak rearers stay in the village and
allow the yaks to graze in adjoining pasture land (Deb, 2016). Due to the
scarcity of fodder during the winter, yaks lose approximately 25-30% of
their total body weight (AICRP Annual Report, 2010-11) In North East
India; yaks are reared on the temperate and alpine pastures fed by plenty
of rainwater. However, in Sikkim, Yak reared on Lachen axis has pasture
land on alpine as well as the cold arid zone of North Sikkim. The highest
populations of yak are found in Ladakh region of Jammu and Kashmir
where these animal graze on the cold arid pastures fed by glacier water.
The feed and fodder availability is become worse in Ladakh during winter
as in cold arid region the vegetation is quite poor and yak has to live on
scanty pastures near the riverside throughout the year and many yaks die
due to starvation during winter as sufficient grasses are not available in
cold arid region. Thus nutritional intervention in yak rearing pockets of
India should be the utmost priority.
Yak is reared above the tree line where agricultural practices are
subtle to nil and highlanders livelihood fully depends on yak as it provides
milk, meat, hair fibers and dung for fuel. Products made from these materials
used for household consumption and also for sale. Apart from intense
economical importance yak also possess huge ecological significance to
the one of the fragile Himalayan ecosystem as dung and urine manure
whole alpine pasture and maintain soil fertility and overall providing livelihood
to the people which have been designated as poorest of poor and remotest
of remote in India.
2.METHODOLOGY TO TAKE UP FOR DEVELOPMENT OF
ENTREPRENEURSHIP (IN RESPECTIVE FIELD)
2.1 Economical importance of yak
Yaks, a marginalized livestock, do not compete with human and
other livestock species for consumption of cereals, oilseeds and other feed
 223

ingredients. Additionally, yak reared in a location where very little agriculture

activity is possible. Yak is primarily reared for meat purposes. The milk
produced by the yak is less in quantity but highly nutritious one. The
consumption of liquid milk is not a routine practice by the tribal people.
Yaks produce up to 1.5 kg milk per day which contains higher fat, protein
and SNF as compared to cattle milk. Therefore value-added milk products
traditional or otherwise have superior marketability. The wool and hair
harvested from yaks are used for making warm clothes and has good
marketing opportunities.
Whether the yakzees of Kashmir valley or the brokpas of Arunachal
Pradesh or dokpas of Sikkim one thing which was common to them, since
time immemorial, was the way they traditionally pursued their livelihood in
isolation (Borgohain, 2016). In one sense it could be said that remoteness
was a means of preservation to their livelihood as they lived in self-
sufficiency with little demand in life. Their life process revolved around the
yak herding in alpine and subalpine meadow taking the same migratory
route every year in nomadic or semi-nomadic lifestyle. It was indigenous
strategies of herder to utilize the seasonally available pasture simultaneously
weaving a safety net for themselves and the animals along a known pathway.
Life was full of extreme hardship and devoid of modern amenities. Every
part and product of yak is utilized by the high Lander for subsistence and
for a livelihood. It includes meat, milk, hair, skin, hide, dung etc. Yak products
like meat and milk are the main source of protein requirement of isolated
highlanders who have little access to modern life. Traditional yak farming
provides milk and meat products to highlanders by default.
3. FOCUS ON ENTREPRENEURIAL OPPORTUNITIES AND
RESOURCES
3.1 Milk and milk product
The dokpas (yak herders) have no other alternative than to rely on
the yaks as above 3,000 msl agricultural practices subside. Yak is generally
milked once in a day in Sikkim. The dokpa milk their yak in Jodung; a
special wooden vessel with the inner fitting of stems of Tibetan herbs (Lama
Stick for separation of cream) and the milk is churned in a wooden churner
called Dzshum. In Ladakh region bag made from yak-skin is used to separate
cream. Butter, cheese, from the milk, is further processed into wet cheeses
known as churpi. The lesser amount of ghee (clarified butter) was generated.
This “churpi” and its smoke-dried form were relished and in great demand
(Avasthe, 2005). The major source of income for yak farmers comes from
milk. Milk production is low ranging from 129 to 350 kg per lactation. Yak
224

milk is rich in protein, fat, lactose, mineral elements and essential amino
acids. (Jain and Yadav, 1985; Nivsarkar et al., 1997).The total dry matter is
17 -18 % during the main lactating period, whereas fat and total proteins
are 6.9-8.9 percent (average 7.5 per cent) and 5.9 per cent respectively.
The total dry matter is 1.2-1.4 times more than that of a cow. Yak milk is
more concentrated than cow milk.
Churpi is delicious items from yak milk prepared by traditional
method in an indigenous cylindrical churner made of wood and bamboo
strips. Dry-matter percentage of churpi ranges from 24 to 52. Consistency
ranges from soft, hard and slightly hard; colour is white to dark pale colour;
taste is sour and odour pungent; pH is from 5.97 to 7.0. Whey is the by-
product of churpi- making process. It is boiled until it becomes a dark and
thick concentrate called doja. Some of this is applied immediately (with a
small tuft of wool) on the face while rest is stored in a can or wooden box.
Originally the packaging of the products was done in animal skin bags
utensils of wood and bamboo and tree leaves (Kataktalware et al., 2008).
Bag of skin and internal organ like the dried stomach are used for storing
milk product like butter and churpi, a type of cheese. Off let a gradual shift
to packaging in poly ethane bags has gained the popularity because of their
exposure to the general marketing trends and consumer preferences.
Because of growing demand and popularity of hard cheese, it is now
commercially available in small sachets in the Gangtok of Sikkim.
3.2 Meat product
Yak meat is excellent cooking qualities. It is fine textured and scarlet
in colour. It is regarded as very palatable, but muscular and marbling is
poor. It is rich in myoglobin and has a flavour akin to that of wild animals
(Sharma, 2004). Among local people, yak meat is highly prized above that
of ordinary cattle since ancient time. Dressing percentage is 42 to 62
(Sharma, 2004). Yak meat is used for making various products. Yak meat is
preserved using various types of traditional methods. Surplus meat is either
smoked immediately on kitchen earth driers or kept deep frozen under
snow.
In Arunachal Pradesh during Losar festival period, prior to winter,
herdsmen cut yak meat in long narrow strips (approximately, 4-5 cm wide
and 30 cm long) and dry these suspended from woven–hairs ropes. These
can be kept for 1-2 years either hung or in hiding bags. In this method, meat
can be stored longer than naturally frozen meat. Meat sausages are encased
in the large intestine. Fresh meat is minced into small pieces, and a mixture
of 50 percentage yak meat, 25percentage visceral fat and 25 percentage
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blood is used as filling material. Salts and condiments are added to this
mixture before filling in the casing (Nivsarkar et al., 1997). Bhattacharya et
al., (2003) reported about sausage, prepared from yak meat by incorporating
pork and fat (in the ratio of yak meat 60 percentage, pork 20 per cent and
pork fat 20 percentages).
In Sikkim, many yaks are slaughtered every year and this is normally
done when the animals are in their best condition, before the onset of winter.
Some of the meat is consumed fresh and much else is frozen in nature’s
own “deep freeze” and stored that way. Meat is also dried and can be
stored longer in hanging state through the roof of a house than when frozen.
The herders and their families eat meat mostly for the four to five months
following slaughter. Yaks are not slaughtered deliberately in spring or early
summer because they are in poor condition and very lean at that time –
through a few yaks may die or be killed as casualties. Meat is obtained
mostly from animals slaughtered before the onset of winter when they are
in good condition, but animals that die accidentally are rarely used. Meat is
eaten fresh around the time of slaughter, but over a more prolonged period
after being naturally frozen. Meat is also preserved by drying. Dried meat
keeps longer than frozen. Sausage is made both from meat and from blood
or from a mixture of the two. Some parts of the viscera are eaten; others
are used as casings for sausage or as storage containers for other products.
Hooves, after canning, have become a popular and nutritious food in pastoral
areas and other places (Kumar et al., 2015) of Sikkim.
3.3 Yak hair skin and horns
Yak produce two type of fibres, viz. coarse outer hair and a fine
down fibre, the later grow prior to the onset of winter as additional protection
against cold. The down fibre is like pashmina or mohair of goats. Shedding
of down coat in young animals, intermediate and down coat in adult yak
starts from May and continue through July. Shearing is done mostly once in
a year in the month of May or June. Better yield and quality can be obtained
by combing out the down first with a wire comb and shearing a few days
later. An Indian yak yields 4 to 5 kg of coarse hair and about 0.4 to 0.6 kg
wool annually (Kataktalware et al., 2008)
The skin and hair of yaks are used in making like leather mats;
jacket and hairy tails being used as treasure. The hides are processed simply
and dried before tanning locally. The leather has many different uses. Pelts
of calves that have died are also processed and made into coats and tanned
skin used for storage of ghee/ cheese. The coarse hair and the fine down
hair find many uses from making ropes to garments to tents. The hair from
226

the yak’s tail is used ceremonially and as a fly-whisk. Horns form house
decorative pieces and chopped horns with mild trimming are used for salt
and medicine drenching of the yaks and its heads and tails are also made
into ornaments and sold as gifts.
3.4 Dung
The nutrient resource of the soil pool is the most important basis
for the growth and maintenance of the alpine vegetation. Any small change
in this soil nutrient pool will have a profound effect on other components in
the system. The dung of yak is an important source of fuel for highlanders
as no other alternative available there. Yak faeces are used principally as
fuel, after drying or, in some localities, used by the herdsmen in building
walls. The manure out of yak dung acts as a good source of fertilizer helps
in maintaining soil fertility and rejuvenates vegetation.
3.5 Yak as a pack animal
The yak is considered as the backbone for the Highlanders and
widely used for drought purposes where it makes its home and not only as
the pack animal for much publicized Himalayan mountaineering expeditions,
known worldwide. The yak has strong limbs, small solid hooves with hard
and slightly sharp edges and a narrow hoof fork. This attributes the yak to
walk in dangerous places and over marshland and to climb over steep
mountains. It can open up a path with its head and its hooves for people to
follow, and it can swim across the water rapidly (Hanah et al., 2016). In
difficult terrain, it is said to be safer to ride on a yak than on a horse, as the
yak will not readily panic, for example in swampy ground. Since ancient
times, the yak has been known in the mountainous region of China and
surroundings as the “Boat of the plateau”. In the semi-agricultural area,
yak is also used for ploughing and other cultivation. Yak has great endurance
for example; carry loads over long distances for two or three days without
water or feed. In other circumstances, the yak may be required to carry
loads during the day, with the opportunity to graze only at night, for as long
as a month at a stretch. Most the yak used for drought are steers. Male F1
hybrids (yak-cattle) are also chosen (as they are sterile and cannot be used
for breeding). The drought animals are used mainly for riding and as pack
animals. Yak races are one of the games at folk festivals much loved by
Tibetan people. In the semi-agricultural area, yak is also used for plaguing,
thrashing and other cultivation.
As far as India is concerned little work has been done regarding
the load carrying capacity of yak as pack animals. Kataktalware, et al.,
 227

(2008) conducted one experiment to evaluate the efficiency of yak as a

pack and reported that there was no adverse effect of load up to 30% of its
live body weight. Hanah et al., (2016) conducted one experiment at NRC
on Yak, Dirang and reported that a well-trained yak can carry up to 35% of
its live body weight (i.e. 140 kg) and walk 14 Km at a stretch without any
adverse effects on its health.
3.6 Yak and tourism
Pack animal playing a significant role to the inhabitant of this
Himalaya belts, maybe, in defence forces, tourism and transhumant livestock
herder since time immemorial. Even in today era of modernization, the
pack or drought animal cannot be done away with many strategic areas for
the Himalayan region. The yaks are natural habitat at high altitude and they
are adapted to a harsh cold hypoxic environment of high altitude. Therefore,
yak is the most suitable animal that will assist the Indian army in high altitude.
Yak safari or yak joy ride is another source of income for the yak
herdsmen. It is the unique safari in high altitude Himalayan belt such as
Leh, Ladakh and Sikkim, which tourist are always fond of it as the safari
offers breathtaking views of high peaks of this rugged land. In Leh- Ladakh,
the yak herds’ men charge rupees 150-400 per person per hour as yak
safari or yak riding fee or charge. However, in Sikkim yak joy ride in Chhangu
Lake; Colourfully decorated yaks with woollen knitwear over the horns
and forehead and strings of bells around the necks are ready to take you
for a ride around the lake or go up the mountain. The herd men charge as
50 to 250 depends upon distance covered and other activities related with
yak. In Ladakh, many herds’ men camped near roadside as they took to the
diversification of their income by providing yak rides to tourists and putting
up restaurants that serve yak milk and milk derivatives. In addition to this,
with special efforts by self help group, they expose the tourist to special
restaurants that exclusively sale yak products and delicacy like yak cheeses
momo, yak milk coffee, salted yak butter tea etc. this practice can be
replicated in other yak rearing states in strategically located tourist destination
like Sela Pass in Arunachal Pradesh, Nathula, Yumthang valley and chhangu
lake and other places of Lachen and Lachung in North Sikkim where tourist
prefer this kind of amenities.
3.7 Ecological importance
The yak and sheep also act as the rejuvenator of the whole alpine
agro-ecosystem as its act of grazing prunes of the vegetation which is very
much required for proper growth and maintenance of the pasture. It also
228

helps in seed dispersal, pollination and seed germination because some plant
seed with very hard coating requires priming which is sometimes fulfilled
by the Tibetan sheep and yak. Occasionally sheep and yak calves are also
hunted by canines of the high altitudes. The sheep and yak hooves are stiff
cloven-footed animals and graze in the group and walk in multiple rows
fashion which forms mini tracks and micro ridges and rills on hill slopes
which prevents soil erosion, especially from wind, as these areas experience
high wind velocity throughout the year.
4. DEVELOPMENT SYNERGIES BETWEEN ENTREPRENEURSHIP
AND AGRICULTURE
4.1 Agri-based diversification
As ICAR-Sikkim Centre, Gangtok, has taken lead role in agricultural
diversification with introduction and strengthening of cultivation of high
altitude leafy vegetables, reddish and vegetable pea with special emphasis
on potato production with improved variety on naturally farm terraces and
abandoned yak/sheep enclosures and also enclosures not in use during
migration as these soil posses very high soil fertility leads to a boost in
organic vegetable production improve income of herders. Furthermore,
ICAR-Sikkim Centre, Department of A.H.L.F. and V.S. in collaboration
with National Research Centre on Yak, Arunachal Pradesh, have distributed
100 kg concentrate feed, solar light, gumboot, raincoat, umbrella, solar light,
silpaullin, tripal, rope bundle and other human amenities useful in working at
higher altitude along with essential veterinary medicines have been
distributed in yak rearing area and also training and awareness were imparted
regarding improved yak husbandry. This particular experimentation showed
that yak-based high altitude vegetable farming not only increases the
nutritional security of highlanders but also efficient utilization and recycling
of the resources which prolong vegetable availability and nutritional security
of the Highlanders.
4.2 Hair fibres value addition
Similarly, a joint intervention by NRCY, Dirang and NIRJAFT,
Kolkata, sets fabric machinery for the weaving of yak wool product blended
with other fibre is installed at NRCY, Dirang. Though yak wool sale does
not take much percentage in herder income portfolio, it is an interesting
product in terms of its export potential for both herders and processors. On
the other hand, many herders do not use yak wool for commercial use, so
they have an opportunity to step further to increase their income by selling
yak wool. Although yak produced sufficient wool per individual, herders
 229

use wool only for their own use, like for making ropes and making into
yarn. As the market price for yak wool is cheap and no scientific intervention
is introduced herders shows the least interest in this avenue, instead of
many of them just use for domestic purposes like making some household
items including belly support belt, bags, mattresses and blankets. This
initiative will bring new prospect for value addition of coarse yak wool by
blending other fibres which are already standardized. Carpets, Jacket,
Sweater, wall hanging etc. from yak wool have been prepared and evaluated
for quality. NRCY has also taken an initiative for a cooperative business
framework as well as disseminating scientific know-how for making yak
wool as a commercial entity to traditional yak farming system for the overall
economic development of yak herdsmen.
5. ECONOMICS INVOLVED TAKING UP THE VENTURE FOR
ENTREPRENEURSHIP DEVELOPMENT
5.1. Economic of yak farming
The husbandry, in one hand, is highly remunerative with the cost-
benefit ratio (B: C ratio up to 4: 1 in Arunachal Pradesh; Maiti et al., 2012),
on the other hand, it is facing several constraints. Challenges of
transhumance system of farming in all yak rearing states of India are major
concerns of this husbandry. Lack of scientific management practices,
reproductive disorders, improper nutrition, lack of degradation of the natural
grassland, inbreeding, weak marketing linkage and non-adoption of
technologies for value addition of yak products are reducing the profit
margins of yak reares. And due to these difficulties, the youth of yak rearing
communities are abandoning the yak husbandry (Ramesha and
Bhattacharya, 2008)
5.2 Economics of Yak Rearing
Yaks are reared under rangeland system. Cost of adult breedable
female yak (with calves) is taken as at Rs 20, 000 and male at Rs 15000.
Average herd size observed under field conditions is 55-60. Hence it is
proposed to have a herd of 55 adult animals with 39 breedable female (26
in different stages of lactation and 13 pregnant heifers), 5 breedable males
and 15 male calves. Salary paid to Brokpa towards grazing of animal one
year under the traditional system is @ Rs 5000/month (normal one young
male with family, cloth and other accessories also provided by the yak
owner). Tenant herding or contractual grazing is common. The cost towards
pasture royalty per year is Rs 15000-20000. Cost towards transit encloses
prepared with the biodegradable material and types of equipment for making
230

milk by-product are Rs 30000. Cost milk by-product is Rs. 400-500/kg

Churpi and Butter is Rs.300-350/kg (on the basis of quality). Thick hair ,
Rs. 300/kg, down-fibers Rs.400-500/kg (on the basis of quality). The meat
of yak Rs. 350-400/kg and also male animals up to one year of age live
weight approximately 150-200/Kg. Pack animal/ Tourism Rs.200/ day per
animal.8. Average age at first calving is 3.5 years and an inter-calving
period is 14-16 month. The assumed mortality rate is 8% (depreciation due
to death) (Ramesha, K.P. and Bhattacharya, M. 2008).
1. Economics of yak husbandry with a unit of 55 yaks.
PARTICULARS Unit A M O U N T(in
Rs)
A. Fixed Cost
1. Cost of breedable adult female with calf @Rs 18,000
(15 calves) 40 Rs 720000
2. Cost of breedable adult male/yak male for pack @15000 10 Rs 150000
3. Transit house and equipments 01 Rs 20000
Total fixed investment Rs 8,90.000
B. Recurring Cost
1. Interest of fixed investment @7% annum Rs 63000
2. Feed supplementation during winter (2Kg/per animal/day)
for 3 month @ Rs28 Kg 55 Rs 184800
3. Summer feed supplement(1Kg/per animal/day) for 9
month @ Rs 20Kg (Productive animals) 30 Rs 162000
4. Cost of labour @4,000/month 01 Rs 48,000
5. Pasture tax/community tax/royalty/annum - Rs 5000
6. Medicine and other miscellaneous expenses - Rs 6000
Total recurring cost Rs 468100
Total cost (Expenditure) Rs 1358100
C. Returns
I. First year
1. Churpi ( 1500 kg) Rs 450/kg Rs. 675000
2. Butter (800 Kg) Rs 350/kg Rs. 280000
3. Hair (110 kg) Rs 300/kg Rs. 44000
4. Thin fibres (down fibres50 kg ) Rs 600/kg Rs. 30000
 231

5. Male yak /pack/tourism (10 animals)/

30 days Rs 200/day Rs. 60000
6. Male yak for meat (surplus 10
animals) 150 kg Rs 300/kg Rs. 450000
Total return Rs. 1539000
Second years
1. Churpi ( 1500 kg) Rs 450/kg Rs. 675000
2. Butter (800 Kg) Rs 350/kg Rs. 280000
3. Hair (110 kg) Rs 300/kg Rs. 44000
4. Thin fibres (down fibres50 kg ) Rs 600/kg Rs. 30000
5. Male yak /pack/tourism (10
animals)/30 days Rs 200/day Rs. 60000
6. Male yak for meat (surplus 10
animals) 150 kg Rs 300/kg Rs. 450000
Total return Rs. 1539000
Cash flow statement
(Amount of return expected up to 5 years)
S.no . Par tic ular s 1st Year 2 nd year 3 rd year 4 th year 5th Year
1. Repayment of
fixed cost (cost of
animals and
equipments) Rs. 50000 Rs. 2,10,000 Rs. 2,10,000 Rs. 2,10,000 Rs. 2,10,000

2. Recurring Cost Rs. 468100 Rs. 466100 Rs. 464100 Rs. 462100 Rs. 461000

3. Depreciation cost 10% N.A. Rs. 89000 Rs. 89000 Rs. 89000 Rs. 89000

4. Total expenditure Rs. 148100 Rs. 765100 Rs. 763100 Rs. 761100 Rs. 760000

5. Returns Rs. 1539000 Rs. 1539000 Rs. 1539000 Rs. 1539000 Rs. 1539000

6. Net profit Rs. 130000 Rs. 7,73,900 Rs. 7,93,900 Rs. 7779000 Rs. 779000

Net asset Value of the project at the end of fifth years

Cost of 55 average body weight 250 Kg adults available@ Rs 90/kg live weight (Govt.
Rate Arunachal Pradesh) =12,37,500.

6. CONCLUSION
The highlander’s rear yak for meat, milk, wool and hide purpose;
while interacting with them it was found that lack of regulated market and
transport linkage were the main constraints, apart from shrinkage of pasture.
A product from highlands could be certified as “Organic” or “Mountain
meat product” as it is produced from chemical and fertilizer free pasture
232

and while the animals are treated with naturopathy. Agricultural produce
from yak rearing area and product derived from yak itself can fetch good
income provided Government should facilitate marketing linkages and also
provide transport and storage facilities to Highlanders. Local markets also
activated since the area, blessed with so many scenic beauties and attract
a lot of tourists.
7. FUTURE PERSPECTIVES
The yak plays a major role in the Indian economy of the tribal
population living difficult terrains of foothills of Himalayas as it provides
milk, meat, hair fibres and dung for fuel. Products made from these materials
used for household consumption and also for sale. However, a large quantity
of coarse yak fibres remained underutilized, except its usage in the form of
rope and tent. Chemical treatment of yak hairs in the presence of bleaching
agent and alkali, its colour changed from black to golden yellow, a very
similar colour to jute fibres. Additionally, the fibres to the metal coefficient
of friction was found to improve from 0.280 to 0.368 in the untreated to
treated samples, respectively. Like other woollen textiles, the jute/yak fibres
blended textiles would be used for winter/warm garment as a jacket,
overcoat, and blazer. Therefore, such type of intervention required at a
larger scale for efficient utilization of yak hairs and overall improvement of
livelihood of yak herders. The high altitude agriculture practices evolved
around yak and sheep husbandry along with the very limited cultivation of
potatoes, rayasag, high altitude radish and millet on naturally form terraces
in traditional ways which quite insufficient to fulfill the household demand.
Therefore, it needs to strengthen high altitude horticultural components by
providing hands-on training, a supply of improved varieties, awareness apart
from that periodic animal health camp and improved husbandry practices
to reduce calves mortality for making yak husbandry more ruminative. The
major threats at present are the growing number of feral dogs which use to
attack yak calves leading to severe mortality almost 20 to 30 % sometimes
it goes to 50 % in Sikkim. Winter fodder scarcity, the prevalence of
haemoprotozoan and ectoparasitic diseases during down migration are major
challenges before sustainable yak husbandry. Effective marketing channels
from the domestic market to international market, development of
ecotourism, yak riding, yak safari, trekking are the additional activities to
make yak husbandry more sustainable and improve the economic status of
Highlanders.
 233

White yak

Breeding bull

Yak riding during Yak Mela

234

Potato cultivation in yak enclosures

Yak in completely snow bound valley

Stored yak butter

 235

Churapi madeup of yak milk

REFERENCES
A I C R P. 2010-11. All India Coordinated Research Project on “Improvement of feed
resources and nutrient utilization in raising animal production” Annual Report
2010-11, pp.58-60.
Avasthe, R.K. 2005. Biodiversity Conservation in Sikkim-I. High priority biologically
rich areas of north Sikkim. ENVIS Bulletin Himalayan Ecology 13(1): 26-39.
Bhattacharya, M., Raquib, M., Konwar, D. and Sharma, D.K. 2003. Studies on carcass
yield and certain meat quality characteristics of yak (Poephagus grunniens). Annual
Report 2002-03. ICAR-National Research Centre on Yak, Dirang, Arunachal
Pradesh.Pp. 24-25.
Borgohain, A. and Bora, L. 2016. Ethno-dynamic transitions in rearing yak in India. In:
Compendium of Fourth interface meeting on Holistic approaches to sustain livelihood
of yak reares through scientific interventions in India. Eds. Deb,S.M., Medhi, D.,
Hussain, M., Bhattacharya, D., Das, P.J. and Deori, S. ICAR-NRC on Yak,
Dirang, India.Pp 37-40.
Deb, S.M. 2016. Strategies to conserve yak genetic resources in India. In: Compendium of
Fourth interface meeting on Holistic approaches to sustain livelihood of yak reares
through scientific interventions in India. Eds. Deb, S.M., Medhi, D., Hussain, M.,
Bhattacharya, D., Das, P.J. and Deori, S. ICAR-NRC on Yak, Dirang, India. Pp. 1-
7.
Hanah, S.S., Bam, J., Rina, T., Deori, S., Medhi, D. and Hussain, M. 2016. Yak as pack
animal: Scope and prospect. In: Compendium of Fourth interface meeting on Holistic
approaches to sustain livelihood of yak reares through scientific interventions in
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India. Eds. Deb, S.M., Medhi, D., Hussain, M., Bhattacharya, D., Das, P.J. and
Deori, S. ICAR-NRC on Yak, Dirang, India.Pp 55-60.
Jain, Y.C. and Yadav, R.S.1985. Yield and composition of milk of Himachali yak, yak
hybrid and hill cow. Indian Journal of Animal Sciences. 55: 223-24.
Kataktalware, M.A. Pourouchottamane, R., Rajkowa, J., Barua, K., Sarkar, M. and
Bhattacharya, M. 2007b. Effect of castration on pack performance of yak under
varying load carrying conditions. Indian Journal of Animal Sciences 78(2):231-233.
Kataktalware, M.A. Saravanan, B.C. and Ramesha, K.P. 2008.Yak products.In: Yak-Moving
treasure of Himalayas.Eds Rajesh, K.P. ICAR-NRC on Yak, Dirang, Arunachal
Pradesh. Pp-95-101.
Kumar, B., Singh, M., Avasthe, R. K., Islam, R., Bhutia, P and Handique, S. 2015. Yak and
Tibetan Sheep husbandry in Sikkim Himalaya: Challenges and Strategies. In:
Technological Options for Climate Resilient Hill Agriculture. Eds. Nagcha S.V.,
Singh R.K., Saikia, U.S., Sethy, B.K. and Rajkhowa, D.J. ICAR Research Complex
for NEH Region, Umiam, Barapani, Meghalaya. pp 246-248.
Maiti, S., Bam, J., Bera, A.K., Biswas,T.K. and Baruah,K.K. 2012. Socio-economic status
of yak pastoralists of Arunachal Pradesh, Technical Bulletin, ICAR-National
Research Centre on Yak, Dirang, West Kameng District, Arunachal Pradesh, India.
Nivsarkar, A.E., Gupta, S.C. and Gupta, N. 1997. Yak production. ICAR Publication,
Pusa, New Delhi, India.Pp.316-319.
Ramesha, K.P. and Bhattacharya, M. 2008. Problem associated with yak production and
strategies for their amelioration. In: Yak-moving treasure of Himalaya. (Eds.)
Ramesha, K.P. National Research Centre on Yak, Arunachal Pradesh. Pp 133-135.
Ramesha, K.P. and Bhattacharya, M. 2008. Problem associated with yak production and
strategies for their amelioration. In: Yak-moving treasure of Himalaya. (Eds.)
Ramesha, K.P. National Research Centre on Yak, Arunachal Pradesh. Pp 137-139.
Sharma, D.K. 2004. Status and recent development in yak products research and technology.
Pp 82-89. In: yak farming. Ramesha, K.P. and Sharma, D.K. (Eds), NRC on Yak
publication, Dirang, Arunachal Pradesh, India.
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Chapter
16
COMMERCIAL PIGGERY FOR
ENTREPRENEURSHIP
DEVELOPMENT
Nihar Ranjan Sahoo

1. INTRODUCTION
Animal husbandry is an integral component of Indian agriculture
supporting livelihood of the rural population. They are the natural capitals
acting as living banks with offspring as interest and act as an insurance
against income shocks of crop failure and natural calamities. Livestock
employes about 9 % of the agricultural work force although it varies widely
from 3% to 40-48% from state to state. Livestock sector did not receive
appropriate policy and financial attention it deserved. Hence the time has
come to think rationally to make it as growth engine of agriculture.
Furthermore, while the goals for agriculture in our country have shifted
from food security to nutritional security, the role of food proteins has
increased many folds. In this context, pork being the quality animal protein
with low cost of production draws the attention of the entrepreneurs. The
pork is an energy packed and the most widely consumed meat till today,
almost in all major parts of the world. It is a rich source of proteins and
fats. This meat being used to make sausages, ham and bacon is an essential
part of people’s daily nutrients requirement in many countries. Pork a
calorific value of 458.0 per 100 gm which has a high mineral content of
Phosphorus, Selenium, Sodium, Zinc, Potassium and Copper. This contain
good quantities are Iron and Magnesium, while Calcium and Mangnese are
found in traces only. This is a rich source of Vitamin B whereas Vitamin A
and Vitamin E are found in very small amounts. Consumption of Pork is
good for skin, eyes, nervous system, bones and mental performance. This
238

also ensures better immunity to body due to presence of essential

antioxidants. According to ICMR recommendation, out of 60 gm daily protein
requirement; 20gm should be from animal protein source. It’s cost of
production is cheapest among the animal meats. Apart from providing meat,
it is also a source of bristles and manure. India stands second in bristle
production which is a byproduct harvested from indigenous pigs.
2. STATUS OF PIGGERY SECTOR IN INDIA
India’s pig population is 10.29 million (CENSUS, 2012) which is
about 2 % of total animal population. Pork production in India was about
460 thousand metric tons in FY 2014-15 contributing approximately 8 percent
of the country’s animal protein sources. From year 2010 to 2015 pork imports
increased at a rate of 11 percent which in 2015, increased by 28 percent
from the previous year to 527 metric tons showing a huge gap in demand
and supply. If we consider requirements for nutritional security, the per
capita availability of meat in our country is about 3 kg/ year where as
ICMR recommended to the tune of 11kg/ year.
Table 1: Leading states in pig population
State Population (in 000)
Assam 1636
Uttar Pradesh 1334
Jharkhand 962
Bihar 650
West Bengal 648
Meghalaya 543
Nagaland 504
All India 10294
Source: Livestock Census, 2012

Table 2: Leading states in pig productivity

State Productivity (in kg per Animal)
Mizoram 87.5
Nagaland 80.0
Kerala 75.0
Arunachal Pradesh 60.0
 239

Sikkim 60.0
Punjab 58.5
Manipur 52.1
All India 40.62
Source: Basic AH Statistics, 2014-15

The national average productivity or per animal yield is 40.62kg/

animal. There is a lot of scope for improvement in production and
productivity. Despite the tremendous potential for economic animal protein
production this species has drawn the attention of planners since last few
decades only. Furthermore, due to social taboo and religious impact the
farming and unscientific rearing practices consumption has been restricted
to particularly socially backward as well as tribal population to a great
extent. The tribal masses rear pigs under nomadic system (scavenging)
both as a source of income and a choice of meat for consumption. In India,
more than 60% farmers belong to small and marginal category, within which
pig raising and pork production represent farmers belonging to lowest socio-
economic stratum. Among Indian states, Assam has the maximum number
of pigs with about 16 % of the total pigs followed by Uttar Pradesh (~13
%), Jharkhand (~ 9 %) and Bihar (~ 6 %). The production system is mostly
backyard scavenging pig to family operated smaller farms. These farmers
are unable to effort costly feed stuff for pigs, hence resort to feed stuff
from kitchen waste, hotel waste, market waste and from waste areas of
neighbouring localities. This creates unhygienic mind set for pork in
perception of majority of Indians. However, if managed properly in terms
of breeding, feeding, management, housing, disease control and marketing,
without much investment, miraculous returns can be ensured along with
hygienic pork production. Despite being small-scale (generally no more
than one to five crossbred pigs), production contributes significantly to the
livelihood of the majority of pig-rearing households. The income from pig
sales meets essential household and farming expenses. The bulk of the pig
population in India is of indigenous type with poor growth rate and
productivity.
3. PIGGERY: AN ENTERPRENURIAL EVALUATION
As of now, the pig farming in India mostly constitutes the livelihood
of rural poor belonging to the lowest socio-economic strata. However, the
preference for the piggery entrepreneurship is desirable owing to the
following factors.
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 Highest feed conversion efficiency from wide variety of feed stuffs

starting from grain to garbage among the meat producing animals.
Produce high live weight among meat producing animals. Converts
wide variety of feed stuffs viz. grains, forages, damaged feeds and
garbage and convert them into valuable nutritious meat.
 High growth rate achieving about 100 times of birth weight at about
8-9 months. Pig farming provides quick returns since the marketable
weight of fatteners can be achieved with in a period of 6-8 months.
 They mature early at about 8 months and thereby decrease the
time taken for marketing.
 They are prolific and produce two to three litters per year with a
litter size from 8-12 each time. Therefore, they can multiply up to
20 times in a year.
 Frequent economic return can be obtained by shorter generation
interval.
 In entrepreneurship point of view pig farming requires smaller
investment and gives quick as well as high return. Pig farming
requires about 75 % of total investment on buildings and equipments
 Pigs manure is widely used as fertilizer for agriculture farms and
fish ponds. This can be integrated suitably with other
entrepreneurship like Rice-Fish-Pig or Pig-Fish-Duck etc.
 Pigs store fat rapidly for which has a good commercial value.
 There is good demand for pork products such as, bacon, ham,
sausages, lard etc from domestic as well as export market.
 They can produce higher meat yield in terms of dressing percentage
ranges about 70 % in comparison to other livestock species (below
65%).
4. DIFFERENT AREAS WITH ENTREPRENEURAL POTENTIAL
Although the piggery sector in India has got tremendous growth
potential, currently it is not fully explored to get its shape in an industrial
form like poultry sector. The following area where there are lots of scope
for entrepreneurship.
Commercial rearing/ fattening unit: Here the farmers procure the piglets,
grow them to prepare finisher/ fattener pigs and market. They may rear 3
batches of 3 months interval per year. Here the feed conversion efficiency
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and faster growth rate are used effectively. The key to success here is
how to reduce the feed cost using locally available ingredients without
affecting the growth rate of fatteners. The disease prevention measures
are also important. The scope is very high as there is a tremendous gap
between demand and supply of pork in our country and the rise of paying
capacity of people has increased many folds since last decades.
Pig breeding unit: Another area where there is tremendous shortage is
production of quality piglets. This opportunity needs bit more expertise of
breeding management and piglet management and consequently can fetch
more profit than the fattener unit. The main purpose is to supply piglets for
the fattener units. Here the prolificacy or rapid rate of multiplication of the
species is encashed. The litter size and frequency of farrowing are the
keys to success for this enterprise.
Backyard farming unit: This unit are more of a livelihood approach rather
than an industrial form. Here there is low input production system traditionally
maintaining pigs with kitchen waste and low cost agro-industrial byproducts
employing family members for self sustainance. The units are generally
consists of 2-10 number of sows. They have both breeding and fattening.
Retail pork outlet: This is an ancillary area of piggery sector which needs
attention for hygienic pork marketing. This can fetch a good number of
employment opportunities. As there are pork eaters across the country the
cold supply chain with hygienic pork retail units can be established.
Modern slaughter house and pork processing unit: The humane,
ethical and hygienic slaughter facilities are not available in sufficient numbers
across the country. A significant constraint in this area is lack of investment
and lack of requisite skill for large scale slaughter and processing. There
are lots of scope for various food industries to invest and consequently
employment generation.
Byproduct utilization and value addition: The utilization of byproducts
like fecal materials and bristles in indigenous pigs can fetch some
employment opportunities. Although, the contribution of India to global pork
production is about 0.5%, the country ranks second in bristle production.
The harvesting and processing for export can be done commercially which
is relatively less explored. Another area of waste utilization is bio-gas
production using pig dung.
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5. PIGGERY ENTREPRENEURSHIP: SWOT ANALYSIS

Strength
 A population of 11.29 million (2012 census) pigs is the strength to
meet the animal protein deficiency. These animals are hardy and
can thrive in adverse situation which is common in the country.
 Large number of people below poverty line. Most of this population
is again in the tribal belts where the people are non-vegetarian in
their dietary habit. The low cost protein supplementation can be
achieved by industrial piggery.
 Improved pig husbandry programmes can be an important area in
the poverty alleviation programme of the Government.
 Commercialized pork production can give a meat revolution to
provide employment to a large section of the rural poor.
 Large amount of agricultural products/ byproducts and kitchen waste
etc can be properly utilized.
Weakness
 Absence of sufficient numbers of breeder farmers is a weakness
for which sufficient numbers of quality piglets are not available for
the fattener farmers as well as to the markets.
 Religious and social taboo associated with pig production and
consumption.
 Lack of organized market for pork aggravates the situation.
 Present management system of scavenging pigs with garbage eating
discourages quality customers.
 Preference for pork of local pigs in some part of the country.
 Lack of adequate support from the development and financial bodies
to establish pork based industries is hindering the growth of pig to
the desired extent.
 Inadequate publicity for pig rearing, consumption of pork and pork
products.
Opportunities
 Pig is being a live source of insurance for rainfed agriculture, there
is a tremendous opportunities to use this as a medium of poverty
reduction in the state.
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 India has a big market for pork and pork products. The demand
and supply gap is widening day by day due to rise in demand. Here
lies an opportunity for development of industrial piggery.
 Since pig is a prolific breeder achieving the targeted growth in
meat sector is another opportunity through this. A very good
opportunity exists for year round employment generation for tribal
youth in this sector even better than the rainfed agriculture that
give engagement to a maximum of 7-8 months in a year.
 Utilization of otherwise waste items in an environment friendly
manner.
 There has been tremendous improvement in transport system which
can be utilized for reviving the marketing network of live pig as
well as pork and products.
Threats
 Deficiency in concentrate feed sources is a threat to the pig industry
which compete human for grains.
 Recurrent natural calamities as well as outbreak of diseases are
potential threats.
 Unavailability of sufficient number and doses of vaccines and
diagnosis for swine diseases.
6. MODEL COMMERCIAL FARMING WITH ECONOMICS
The commercial piggery units can be established with financial
support from the banks. For obtaining bank loan the farmers / entrepreneurs
should apply to the nearest branch of a Commercial, Co-operative or
Regional Rural Bank in the prescribed application form, which is available
in the branches of financing bank. The bank examines the proposed scheme
for its technical feasibility and economic viability. The scheme should include
all relevant information on the number of and types of animals to be
purchased, their breeds, production performance, cost and other relevant
input and output costs with their description. Based on this, the total cost of
the project, margin money to be provided by the beneficiary, requirement of
bank loan, estimated annual expenditure, income, profit and loss statement,
repayment period, etc. can be worked out. The relevant information can be
obtained from NABARD website (https://www.nabard.org/). However,
one small scheme of 10+2 units of pig for small pig rearers is being discussed
here for better understanding.
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Economics of rearing 10+2 units of pig for small pig rearers:

The parameters adopted for calculation of the economics of pig
farming comprising 12 animals has been worked out on the following techno-
economic basis.
1. The unit is managed by own family members without the help of
external labour.
2. Ten female and two male piglets (grower pigs) to be purchased of
around 4 month of age. They will act as breeding stock. The piglets
born from them will be reared for 6-8 months and live pig would be
sold in the market.
3. Female gives birth to ten young ones twice a year. Litter size at
weaning would be eight.
4. The market weight will be 80.00 Kg as live weight at about 8
month.
5. Adult pig will take 1.00 Kg concentrate per day and young one
0.50-1.00 Kg per day. The rate of concentrate is Rs. 15.00 per Kg.
In addition to concentrate, the adult pigs and piglets fed kitchen
wastage/ vegetable wastage @ Rs. 2.50/ day and Rs. 2.00/ day,
respectively.
6. The floor space requirement is 50 sq. ft./ adult, while piglets need
20 sq.ft.
7. A minimum of 1200 sq. ft. semi-pucca house is required at a
construction cost rate of Rs. 350/ sq. ft.
8. Equipments purchased will be @ Rs. 500/ adult.
9. Depreciation on buildings and equipments will be @ 10% per year
and 15% per year, respectively.
10. Animals will be insured at a premium rate of 7% of the value of the
animals.
11. Veterinary expenses will be @ Rs. 300 per adult.
12. The farmer can only contribute 25 % of total non-recurring cost or
working cost of capital, rest will be in the shape of loan amount of
75 %. The amount of loan and interest can be repaid by the farmer
in equal half yearly installments within a period of 5 years, with a
repayment holiday of 6 months. Grace period will be 12 months.
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13. Production cycle of the herd for calculating cash inflow and
outflow:
Sl. No. Kinds of stock Years
I II III IV V
1 Foundation Stock (Boar + Sow) 12 12 12 12 12
2 Number of piglets born 200 200 200 200 200
3 Number of piglets weaned and reared 160 160 160 160 160
4 Male and Females retained for replacement 03 03 03 03 03
5 Marketable Pigs for sale 150 150 150 150 150
6 Adult Breeding Pig for sale 03 03 03 03 03

Economic analysis:
I. Fixed Investment: (in Lakhs Rs.)
1. Cost of building (1200 sq. ft. @ Rs. 350/ sq.ft.) = 4.200
2. Cost of equipments (12 adults @ Rs. 1000/ adult) = 0.12
3. Cost of 10 females (@ Rs. 4000 each) and 2 males (@ Rs. 5000)
= 0.50
Total investment on fixed capital = 4.82
(NB: Cost of foundation stock and materials for shed may vary from
place to place)
II. Annual fixed cost (in Lakhs Rs.):
1. Interest on fixed investment @ 15% per annum = 0.73
2. Loan payment of 5.0 Lakhs in 5 years @ 1 Lakh per annum = 1.00
3. Insurance charges @ 7% = 0.22
Total Fixed cost annually = 1.95
III. Variable cost (in Lakhs Rs.) annually:
1. Feed
a. Concentrate
(i). Breeding stock @ 1 Kg x 12 pigs x 365 days @ Rs.15.00 per Kg
= 0.66
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(ii) Piglets (2 months weaning age) @ 0.75 Kg x 160x240 days x Rs. 15.00
= 4.32
b. Kitchen wastage/ vegetable wastage
(i). Breeding stock @ Rs. 2.50 x 12 pigs x 365 days = 0.11
(ii) Piglets (2 months weaning age) @ Rs. 2.00 x 160 x 240 days
= 0.76
2. Veterinary expenses @ Rs. 300.00 per adult = 0.04
@ Rs. 50.00 per piglet = 0.08
3. Electricity charges @ Rs. 200.00 per month = 0.03
Total Variable cost annually = 6.00
A. Total annual cost in Lakhs (1.95 Lakhs + 6.00 Lakhs)
= 7.95
IV. Returns annually (in Lakhs):
1. Sale of 160 pigs per year of 80.00 Kg live weight @ Rs. 100.00 per Kg.
= 12.80
2. Value of manure = 0.10
3. Sale of gunny bags = 0.05
4. Sale of replacement 3 breeding stock of 230 Kg each @ Rs. 80.00 per Kg
= 0.55
Total return annually = 13.5
Net Income / Profit per year = 13.5-7.95 = 5.55 Lakhs
Profit per month = Rs. 46250.00
Note: The balance value of the adult stock in hand after five year, if
added to income, it would increase the profit.
7. IMPORTANT ASPECTS OF PIGGERY ENTREPRENEURSHIP
1. Input availability and support system: In piggery enterprise
one important aspect is input availability i.e availability of piglets,
feed, vaccine and medicine etc. The piglets are supplied from the
AICRP on Pig as well as Mega seed centers across the country
along with the state government farms. Besides several private
breeder farms also supply improved quality piglets. The vaccines
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are available with the state biological product departments. The

insurance for the pigs are available under the livestock insurance
scheme provided by several companies.
2. Attempt for reduction of input cost: The input cost can be
reduced using the locally available materials in housing, replacing a
part or full of the diet with kitchen waste, hotel waste and remnants
of bakery etc. The feed alone covers 70% of the cost of production.
Therefore, reducing the cost of feed the production cost may be
greatly reduced.
8. CONCLUSION AND FUTURE PERSPECTIVES
The pork provides high quality protein with lowest cost of production
which has potential to feed the large number of poor. There is a big market
for pork and pork products in our country which is widening day-by-day.
The pig as a species is capable to multiply at a very rapid pace with a better
converter of feed to pork. The increasing demand for animal-source foods
in India is matched with the current low productivity of pig population,
suggests that well targeted interventions to improve pig production could
deliver significant livelihood benefits for tribal and other marginalized groups
in India. Therefore, suitable schemes to popularize the scientific pig breeding
cum rearing of meat producing animals with adequate financial provisions
are necessary to improve the production. As of now the piggery sector has
not occupied its proper place which needs to be supported looking to its
high potential to provide nutrition, employment, insurance to the poorest of
the poor.
REFERENCES
Basic AH Statistics, 2014-15
Birthal, P.S. 2008.Linking smallholder livestock producers to markets: Issues and approaches.
Indian Journal of Agricultural Economics 63(1):19-37
https://www.nabard.org/
Livestock Census, 2012
Vision 2030 of ICAR-NRC on Pig (2011) Pp: 1-24
www.fao.org
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Chapter
17
MODEL GOAT FARMING FOR
ENTREPRENEURSHIP
DEVELOPMENT
P K Rout, M. Verma and A. Kumar

1. INTRODUCTION
Livestock rearing is one of the most important economic activities
in the rural areas and contributes significantly to the national economy.
Livestock contributes 30% of total protein requirement of world. The rapidly
growing livestock market provides an opportunity for global trade; and
imparts income generating opportunity for livestock farmers. India holds
agricultural land spreading up to 297 million hectare and contributes 16.6%
to GDP. Livestock products (90% of the production) are consumed locally
and 70% of the produce is sold informally. In India, 70% of milk and 82%
of meat are produced by small holders. Small holder livestock production
system can be transformed by
 Agribusiness/innovation
 More value addition- more return
 Should be sustainable, equitable and healthy manner
 Carbon foot print / environmental foot print management
2. GOATS IN AGRICULTURE AND RURAL DEVELOPMENT
Goats are best animal component in arid, dry land and rain fed
agro-climatic zones, providing livelihood to over 5 million households in India.
Goat keeping has been a traditional activity and a primary source of livelihood
for small holders. Goats have distinct social, economic, managerial and
250

biological advantages over other livestock species. Goat is the best

adaptogenic animal and a key driver for inclusive growth. It is the earliest
animal domesticated by man and provides food, fiber, skin and leather and
livelihood security. Goats serve as smart card like RuPay for resource less
poor people and have special significance in disadvantage place. Goats are
distributed in all types of extreme climate and well adapted to the specific
environment. They have comparatively low susceptibility to prevailing
diseases and can be easily raised with the locally available feed and fodder
resources or under intensive, semi-intensive grazing system.
In India goats are mainly distributed in Eastern (35.85%) and
Northern (34.73%) regions followed by Southern (24.88%), Northern
temperate (3.46%) and NEH region (1.10%). India has 28 defined breeds
of goat with a total population of 135.4 million. The country stands first in
goat milk (26.31%) and second in meat production (10.41%) in the world.
2.1 Indicators for sustainability in goat farming
Goat is a champion animal for social justice; also as an emerging
companion. It provides a potential pathway from poverty to prosperity for
resource less people; providing livelihood to over 5 million house hold in the
country. Modern scientific inputs in goat rearing have tremendous potential
for social transformation to people in most disadvantage places. Goat
production system fulfills all the indicators for sustainability as the system
is ecologically stable, economically viable and energy efficient.
a. Ecological Stability
Goats have no major ecological impact and their role in ecological
degradation has been exaggerated (RTF, 1987). Anatomical features permit
the goat to nibble tiny leaves from thorny trees and nitrogen from saliva
induces re-growth of leaves. They defoliate smallest branch of the tree
without damaging the twigs, improve soil fertility by even distribution of
manure and improve grazing land by dispensing seeds.
b. Viable Economy
Goat farming is a very enumerative source of income among all
livestock farming in the entire farm situation. It offers flexibility to farmers
in capital investment (space, feed, management) and support a steady source
of income (sell one bunch get another ready); moreover, goats can be sold
at any point of time with ease. Their high reproductive capacity, short
gestation period, high prolificacy and fast turnover are the key benefits to
the farmers. They fit well into existing farming system with no competition
 251

to traditional large livestock rearing and are complementary to other

husbandry practices due to unique physical, physiological, behavioral and
economic characteristics. The relative economics of 1 buffalo vs. 5 goat
unit in Rajasthan was studied as it was observed that profit per annum was
Rs. 1945 from goat unit and Rs. 1755 from buffalo unit (Pasha, 1990).
c. Energy Efficient production system
Input such as support energy, land and labour are not costly for the
goat production system. As far as the grazing habit is concerned, goat can
thrive on vegetation which is not suitable for other species. As a ruminant it
can use roughages and non-conventional feeds for its energy utilization and
growth. Land mainly targeted for goat grazing is rangeland and wasteland.
Another major input is for labour, which is lowest in goat farming (Sastri,
1995). It does not require skilled labour as it is mainly handled by women
and children in village conditions.
Similarly, output of the system is milk, meat, fiber and breeding
stock. The meat demand is high, so question of over production of animal
does not arise in present situation. Other by-products are hides, offal, and
bones which are not causing pollution from processing point of view.
However, excreta of goat urine and dung have been proved to be rich
sources of nitrogen for soil fertility. If a farmer starts raising goats with
loan then the owner can repay all the debt in a period of five years. The
input-output ratio will be 1:2.3. The income per animal per year was estimated
as Rs. 71.00, Rs. 105.75, Rs. 140.50, Rs. 176.25 and Rs. 210.00 respectively.
Again from the simulation study Verma and Prasar (1991) indicated that
the goat owner can repay all the debts within 5 years and the rate of profit
from 6th year onwards will be Rs. 572.75/doe/year. It is necessary to make
correct decision on the nature of their mixed farming enterprise in order to
obtain efficiency on certain products.
3. GOAT FARMING- A DEMAND LED REVOLUTION FOR
ENTREPRENEURSHIP
Entrepreneurship is key driver for economic development. It is
necessary to plan and implement entrepreneurial programmes on agriculture
for employment. Thus, entrepreneurship development in agriculture and
livestock production is the best potential alternative to find employment
avenues for the rural population. The importance of entrepreneurship
development in agricultural sector and business planning is required to
prepare a thorough business plan.
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Entrepreneurship in livestock production is a demand led revolution

as it increases job opportunity, provides nutritional security, better use of
existing natural resource and managing the production system in better
climate smart way. There are vast opportunities for entrepreneurship in
livestock. Demands for milk and meat increase by 1.08—1.97 fold every
year. World food demand is expected to increase up to 20% by 2050 and
meat demand by 76%. By 2030 in India, the increase in demand of meat is
expected to increase by 100% and of milk by 52%; whereas, the average
income of India will increase by 30%. Meat supply increases by 3% in
developing country with the highest demand being from South Asia and
Africa. Therefore, the demand itself attracts various entrepreneurs to work
in this area.
4. GOAT FARMING ENTREPRENEURSHIP: SWOT ANALYSIS
Strength
Presently goat ensures income to five million households in India
and many of them are surviving on income only from goats. Goats are
found more in ecologically fragile arid and semiarid areas and mostly with
poor people. Strong consumer preferences for quality animal foods especially
from goat are likely to change the prevailing goat production scenario in the
country during the coming years and goat is being projected as ‘Future
Animal’ owing to following favorable attributes:
 Goat is comparatively tolerant to different environmental stress
and has higher feed utilization efficiency on forest based resources/
rangelands. They have varied genotypes adaptable to wide range
of agro-ecological condition.
 They sustain themselves by top grazing habit and can be raised
with the locally available feed and fodder resources or under
intensive, semi-intensive grazing system.
 Goats fit well into existing farming system with no competition
with traditional large livestock rearing.
 They have an efficient production system due to short gestation
and early maturity.
 Better rearing potential under constraints of limited land and forage
area, higher environmental stress and disease prevalence due to
comparatively low susceptibility of goats to prevailing diseases.
 Economically more viable and profitable i.e. low investment, high
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and consistent returns, flexibility for farmers in capital investment

(space and feed, management), salable at any point of time and
steady source of income (sell one bunch get another ready)
 Entrepreneurs realize commercial viability due to remunerative price
of goat produce.
 Changing consumers’ preferences: popularity for non-vegetarian
diets by growing Indian middle class and change in choice of West
Asians for Indian goat meat from Australian sheep as the meat of
goat is tastier and low in fat. India emerging as the major exporter
of goat meat to West Asia. Domestic demand for goat meat is set
to rise to 1.27 million tonnes in 2020 (3 times more than present
production).
 Goat milk has medicinal value and source of nutrition for children
and pregnant women. Goat cheese and butter has export potential.
Weakness
Goats are associated with poorest people and distributed over most
disadvantage places of the country. Due to low socio-economic status and
lack of awareness, the resource-poor goat keepers often fail to adopt or
implement modern methods of goat husbandry. Poor production of non-
descript goats, poor nutrition, improper health care are limiting factors for
optimum productivity. Following are can be flagged as the major weakness
of goat production system
 Goat rearing is not well accepted by all classes of people; mostly
confined to backward classes and small holders.
 Lack of value added and demand based goat production system
and unscientific slaughter practices.
 Lack of definite breeding, grazing, marketing and goat slaughter
policies.
 Shrinking grazing land and inadequate feeding practices.
 Scarcity of inadequate health covers programmes and affordable
disease preventive measures for goats. Kid mortality up to one
month of age is more than 15% in different parts of the country.
 Limited availability of superior germplasm for improving native/
non-descriptive breeds.
 Unorganized and middleman/buyer oriented marketing.
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 Limited credit and insurance schemes for goat farming.

 Misconception that goat is an ecological threat is hindering goat
farming in forest rich states
 There is no platform for all players (breeder, farmers, various input
supplier, butchers, middlemen, marketing, and professionals) to
interact and find solution to their problem for increasing and
sustaining productivity.
Opportunities
Various opportunities are there in goat farming management and
production system. Major ones have been identified as:
 Designing of programmes and strategies to improve the welfare in
goat farming management and has better scope of using artificial
intelligence in this field.
 Gain support from below poverty line people.
 Role to play in cottage Industry.
 Goat milk is being recognized as an important health food for the
future and can be produced for different health requirement as
such of as processed food especially cheese.
 Goat butter – a rich and conscious consumer item as it contains
short and medium chain fatty acids.
 Goat milk powder and Cheese have better significance in human
nutrition and excellent quality cheese has export potential.
 Tailor made foods from goat milk to better fit human needs.
 Lean meat of goat is the most preferred by consumer.
 Valued as best bio-organic manure producer.
Challenge & Threats
Why livelihood projects did not perform to our expectations? Activity
based groups and/or commodity based groups never focus on improving
the backward and forward linkages required by producers to extract
maximum profit from their enterprises. Various challenges and threats are
associated with goat farming in present scenario:
 Non-availability of superior bucks and their indiscriminate slaughter
at early age.
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 Loss of germplasm due to change of strategy in agricultural

production pattern and intensity.
 Poor condition of farmers.
 Endemic and emerging diseases are causing high mortality. Lack
of proper diagnostic tools and immuno-prophylactic measures has
led to high mortality.
 Due to increasing scarcity of breeding bucks of important breeds
like Jamunapari, Beetal, Sirohi, Surti, farmers have resorted to
breeding using bucks of other breeds like Marwari, which have
large numbers. As a result animals have started losing their breed
characteristics. Thus valuable germplasm of goats is under great
threat of extinction.
 Pastureland is diminishing where the goats were otherwise
traditionally reared.
 Due to frequent natural calamities such as drought, floods etc.
farmers are compelled to dispose of good animals including kids,
as they do not have the resources to face such eventualities.
5. ENTREPRENEURIAL OPPORTUNITIES AND RESOURCES
Goat enterprise can play a pivotal role in empowering rural farmers
and rural women. Goat farming attracts the attention of youth and needs
innovation in various key areas to increase profit level, better management
and animal welfare. Development of seed stocks of different breeds for
providing superior germplasm, development of nutritional feed and fodder
options, commercial feed development, housing and herd management, health
management, devices and appliances for goats, development of various
products for human health and development of a platform and policies for
marketing of goats and products are few options identified for entrepreneurs.
Pashmina industry needs the attention and technological input for
entrepreneurship from production to designer product development.
Moreover, it is necessary to produce healthy and safer produce from goat
by hygienic milk and meat production.
A. Development of breeding stock of different goat breeds (Seed
stock)
Raising nucleus stock of superior germplasm of improver breeds
(Jamunapari, Sirohi, Jakharana, and Barbari) to increase productivity of
non-descript native goats (Fig. 1). For a small flock of 3-5 goats, the farmers
256

often do not prefer to maintain a breeding buck. Naturally they depend on

sharing of community buck maintained in the villages by a flock owner
maintaining 10 -15 or large number of goats. These bucks are not maintained
on optimum feeding regimens and are often sub fertile. There is a great
demand for the fertile/ tested bucks among goat farmers in the country.
Under the breed improvement programmes ICAR-CIRG provides breeding
bucks of superior genetic merit of different goat breeds to progressive goat
breeders, non-government organizations, development agencies and various
government departments.
To raise and maintain superior germplasm (seed stock) and making
them available to goat farmers is an opportunity for entrepreneurs. This
has a huge market in India as well as abroad.

Fig. 1: Seed stocks: Different breeds of goats

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B. Nutritional feed and fodder development:

Standard package of feeding and complete feed development are
the requirement for enhancing productivity. Community based Agro-forestry
for goat fodder is an approach for solution to fodder shortage. Promoting
stall feeding and use of household available feed resources and/or complete
feed pellets to address problem of declining grazing area. (Fig. 2)

Fig. 2: Feed management at farmer’s house and at farm respectively

C. Housing and Shelter management:

Goats are generally not provided any kind of housing in the field
conditions. Proper housing of goats is however, very important (Fig. 3).
Housing is required to protect the goats from vagaries of environment and
protection from predation (Fig. 4). The important features of ideal goat
housing that animal sheds should remain dry and comfortable to the animals
and there should be provision for sufficient space as per standard guideline
(Fig. 5). Goat houses can be made up of traditional material such as thatch
or modern material like plastic/fibre roof and concrete pillars and walls.

Fig. 3. Different kind of shelter for rearing and managing goats made from various materials
258

Fig. 4. Kids’ cradle for protection from predators

Fig 5. Erection of elevated platform for protection from parasites and dampness and
shelter made of wooden flooring

D. Appliances for Goat

Metallic or earthen utensils are generally used for feeding of ration
to the goats. Some farmers use conventional troughs or hayracks. CIRG
has developed some improved feeding and watering devises for goats which
can reduce the wastage as well contamination of feed. Some of these like
hexagonal or rectangular feeders are highly popular (Fig. 6). These feeders
have provisions for individual or simultaneous feeding of various types of
feed materials. There is a lot of scope for innovation and experimentation
in this field to meet particularly specific needs of goats and even facilitate
the goat farmers. Developing portable, cost effective feeders to meet less
wastage and space optimization can prove useful to farmers.
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Fig. 6. Feeder to minimize wastage of feed and for space optimization

E. Health management:
A wide range of bacterial, viral, parasitic infections causing higher
mortality in the form of disease outbreaks results huge economic losses to
goat farming system. Thus, serious and meticulous efforts are needed for
early identification of diseases and confirmatory diagnosis of goat disease
in order to increase opportunities for international trade in goats. Infectious
diseases like FMD, Goat pox, PPR (Peste-des-petits Ruminants),
pasteurellosis, coccidiosis and parasitic infestation are responsible for higher
mortality in goats. Some of the important diseases of bacterial, viral, and
parasitic, origin which need proper prevention to check high mortality among
goats.
Organising health camps, disease awareness camps and providing
medicines and measures for medicine transportation along with first aid
trainings is a good option for start-ups. Vaccine production and marketing
can also be taken up in collaboration with experts. Developing various mobile
applications for health management a good option for entrepreneurship.
F. Milk, meat and other products
The market for goat products is invariably huge and offers scope
and choices to the beginners (Fig. 7, 8). Goat meat and milk quality: Goat
meat is leaner with less fat, high in iron and high in B12 with balanced
amino acids and lower n6:n3 ratio with conjugated linoleic acid. Likewise,
goat milk is the most humanized milk with small fat globule size and is a
food for infant and other people. It is a rich source of calcium and other
minerals and holds various health beneficial properties like hypoallergenicity,
260

anti-oxidative, anti-hypertensive, antimicrobial, anti-inflammatory, immune

stimulatory, immunomodulator, antithrombotic and many more. Goat milk
possesses medicinal property and can cater to nutritional requirement of
family. Goat meat is a preferred food item with tremendous export potential.
Goat cheese, butter and other dairy products are way healthier. Goat milk
finds its application in nutrition industry, food industry, medicine and even
fashion industry. Goat faeces prove good bio-manure and pashmina from
goats is highly valuable in textiles (Fig. 9). Goat skin leather is also used
variedly.

Fig.7. Changes in global goat meat production (Almost 200% increase from 1980

Fig.8. Changes in global goat milk production (Almost 120% increase from1980)
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Fig. 9. Various products from goats: cottage cheese, meat, pashmina

G. Development of a platform for Marketing of goats and products

Marketing is an important aspect of any production process.
Livestock marketing including goats in the country is highly unorganized.
As the goat farmers are illiterate, middlemen exploit them. There is
incessantly increasing demand for meat and breeding goats in the country.
Sale price of live goats are directly proportional to the market price of goat
meat. Farmer should plan to maximize their sale at the time of festivals like
Eid, Holi, Durga Puja and Dusshera to realize 2-3 times higher price. The
main marketable products include the fattened kids, culled animals, breeding
animals, manure and milk. Potential buyers like big retail meat outlets and
wholesale traders should be identified to bypass middlemen.
H. Transportation of Goats
Goats are e transported from one place to another and therefore, it
is necessary to optimize the space and standard management practices to
reduce stress and to maintain welfare standard. Designing transportation
vehicle and service can also be taken up as entrepreneur market. Standard
means of transportation of animals may also involve international business.
262

I. Compost/ Vermicompost Development

Goats are adaptogenic making their existence in various climatic
conditions, from coastal areas to mountains, and plains. Goats have been
known to enhance soil fertility by distribution of manure in far areas. The
lands chosen for grazing of goats is usually rangeland and wasteland. Goat
faeces are a very good bio-manure. Goats improve soil fertility by even
distribution of manure and improve grazing land by dispensing seeds.
Compost/ Vermicompost from goat waste can also be developed as an
industry providing a source of additional income to goat farmers.
6. GOATS FARMING ECONOMY
The poor people in rural areas find goat as the most suitable
alternative for supplementary income and milk as there is a scope to harvest
more benefits in short period of time. Goat sector contributes around 12%
output from livestock sector and offers tremendous scope of doubling the
existing income from goat farming by using low cost technologies. Field
studies indicated that income per goat per year was about Rs.3200.00, by
and large low in productivity and fetch less price. With some little input on
health, nutrition, and management, the income per goat per year was
improved to Rs.4800.00 (1.5 times). Goat farmers rearing goats under semi-
intensive/ intensive management system and with smart marketing may
earn profit at the tune of Rs.6500.00 per adult goat per year (double of
extensive management system). By doubling income per goat per year, the
contribution of goat rearing to the household’s income may increase from
15 to 30%. This needs effective support services (prophylactic) from state
animal husbandry department, micro credit facilities from financial
institutions for increased adoption of technologies and setting up of
commercial goat farms, market and cooperative departments. An economic
model of 50 breeding does and 2 bucks rearing of medium size breed under
semi-intensive management system is given in Table-1.
Table-1 Economics of Goat Rearing: Under semi-intensive management system
Fixed cost Rs 3,89,000.00(Construction, Animals & Equipment,
Depreciation and Interest on Capital Cost )
Recurring Cost Rs 1,69,276.8
Feed for adults & kids 1,08,540
Veterinary cost 6,600
Labour 36,000
Interest on variable cost 18,137
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Returns Return over variable cost (ROVC) 2,48,143

ROVC per goat Rs. 4963 say Rs. 5000
ROVC per month Rs. 20,679
Return over variable cost (ROVC): Total Income- (Variable cost + Depreciation on fixed
cost + Interest on fixed cost)

7. EXTERNAL FACTORS AFFECTING ENTREPRENEURSHIP

IN GOAT PRODUCTION

7.1. Political
Government is committed for livelihood security, social justice and
fulfilling the objective of “Inclusive growth” in our society. At the same
time providing safer products for consumers and taking measures for animal
welfare are at priority.
7.2. Economy
Livestock sector contributes 25% to the agricultural GDP in our
country. However the contribution of livestock to agricultural GDP is
estimated to be 40% in semi-arid and 70% in arid regions, where goat is the
major livestock species reared. Livestock sector provides employment to
about 20-22 per cent of the population thereby would be a major sector for
reducing unemployment and alleviating poverty and provides food and
nutrition security.
7.3. Socio-cultural
Technology should be linked with the socio-economic status of the
farmers for its adoption. For this development of value added products
looking into the changing food habits is very essential.
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7.4. Technological
Development of cost effective technology and its adoption by
farmers are both very crucial. Production of superior germplasm of Indian
goats for economic traits like meat, milk and fiber production needs to be
done under on-station and on-farm condition. Augmentation in meat and
milk production can be done using physiological approaches and reproduction
biotechnology. Economic feeding system and feed processing technologies
should be developed for small holders and commercial goat farmers.
Development of preventive and control measures for economically important
diseases of goats are required.
Commercialization of goat farming for integrated small, ruminant
management and production system is needed. Farming system research
under integrated rural development programme with special reference to
goat improvement is needed. Processing technologies should be developed
for value added meat, milk and fiber products from goats. Training
programme should be conducted on goat production technology for national
and international farmers, entrepreneurs, Scientists and other personnel
and technology competitive for both domestic and international market.
7.5. Environmental
No scientific evidences are there to show that goat is not detrimental
to environment. Shortage of measurements to reduce green-house gas
emission from goats and implementation of appropriate bio-security measures
to address the zoonotic and trans-boundary diseases affecting livestock
economy is requisite. Appropriate adaptation and mitigation strategies to
address the impact of climate change and stress in goats need to be realized.
Technologies for animal waste management for efficient carbon reduction
have to be developed.
7.6. Legal
Need for developing quality database on environmental pollutants,
heavy metals and pesticides residues in feed and animal products so as to
bring in appropriate legislation for maintaining quality standard. Quality
standards are to be put in place for animal feeds, vaccines and other biological
products to meet the sanitary and phyto-sanitary standards.
8. COMMERCIAL GOAT FARMING –STATUS AND LESSON
LEARNT
The goat rearing using improved management practices undertaken
for profit maximization from their enterprise considered as commercial goat
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farms. Since last decade, a number of commercial goat farms have come
up in different parts of the country. Some of these farms have adopted
improved goat technologies for better returns.
Technical aspects of goat farming play an important role to asses
cost and returns in goat farming. Increasing human population, increasing
income, changing food habits due to improving standard of living are some
important factors responsible for high demand for goat meat. Goat meat
fetches best price among all types of meat available in domestic market.
Low initial investment and sustaining on low grade ration and better returns
have made this enterprise more profitable. It can be started on less productive
or non- cultivable waste lands. Commercial goat farming has an important
option in order to bridge the gap between demand and supply of goat meat
and other products. In the present example of technically feasible and
economically viable project has been given of a farm starting with 100
(does) and 5 (bucks) of Barbari breed under semi-intensive/intensive system
for 5 years under following assumptions:
Goat farming assumes special significance in extreme ecology,
particularly in arid, semi-arid and in dry land areas, where farming of other
livestock species may not be that profitable and sustainable. Small-scale
goat production is of significant benefit to families living in a wide variety of
climatic conditions. Resilience of goat production to harsher environmental
conditions offer amicable solutions to alleviate the vulnerability of the small
and marginal farmers at the time when crop production fails due to adverse
climatic conditions and where the natural resources are limited. Prevailing
goat production system is all set to be transformed in the coming years due
to emerging market trends on account of strong consumer preferences
towards quality animal foods. Responding to the market signals, the goat
production system in India has been gradually moving from extensive to
intensive system of management for commercial production.
9. CONCLUSION
Goat being an adaptable livestock, active in various agro-climatic
zones becomes a selection for agri-preneurs. Low cost management and
investment are the major reasons goats are chose by poor farmers. Goat
production management is remunerative and offers steady and sustainable
growth to farmers. Goat farming provides remarkable opportunities to
entrepreneurs to take up as business initiative. Moreover, the commercialized
goat farming is capable of providing better turnovers compared to many
other agro-industries. The productivity and profitability of the goats rearing
system can be improved through different technological innovation, better
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welfare measures, product diversification and reducing environmental carbon

foot print.
10. FUTURE PERSPECTIVES
Goat farming provides employment and source of income to
households where agricultural income is seasonal. The sustainability of goat
farming thrives maintaining the ecological and economic stability and
providing social justice to farmers. Various aspects and prospects in goat
farming have been discussed in this chapter. The enormous scope being
offered through goat management and product development will stand
agriculture equivalent to other booming industries in future. Goat milk being
the most humanized milk and less allergenic will find future in nutraceuticals
and medicine and the increase in demand of goat meat will be the major
driving force to sustain this as an industry. The value of Pashmina in textiles
is proven. Thus, the demand led basis will prove very useful when technology
and strategies will combined with this avenue and may even lead to generation
of international revenues.
REFERENCES
Dastagiri MB. 2004. Policy Paper 21 Demand and Supply Projections for Livestock
Products in India. National Centre for Agricultural Economics and Policy Research
(ICAR), New Delhi, India.
David Kahan. 2012. Entrepreneurship in Farming, Food and Agriculture Organization of
the United Nations (FAO) ( www.fao.org)
Devendra, 1994. Small ruminants potential value and contribution to sustainable
development outlook on Agriculture Vol. 23 No.2, 97-103
Sharma, M., Tiwari, R. & Sharma, J., 2010. Entrepreneurship in Livestock and Agriculture.
New Delhi, India: CBS Publishers & Distributors
Harper, M. 1992. Evaluating entrepreneurship development programmes in India. Small
Enterprise Development, 3(4), pp. 50-54.
de Wolf, P. & Schoorlemmer, H., 2007. Exploring the Significance of Entrepreneurship in
Agriculture, Frick, Switzerland: Research Institute of Organic Agriculture FiBL.
FAO (2007) FAOSTAT. http://faostat.fao.org
Haenlein GFW. 2001. Past, present, and future perspectives of small ruminant research. J
Dairy Sci 84, 2097-2115.
Haenlein GFW, Devendra C. 1983. Appropriate nutrition for goat production in the tropics,
In: Proceedings of the Joint IFS/ILCA Conference on Small Ruminant Research in
the tropics, Addis Ababa,
Kharche, SD, Jindal, SK, Goel, AK, Sharma, MC, Kumar, P. 2009. Advances in Production
and Reproduction in Goats. (Director, Central Institute for research on Goats).
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Morand-Fehr P, Boutonnet JP, Devendra C et al. 2004. Strategy for goat Farming in the
21st Century. Small Rumin Res 51:175-183.
Morand-Fehr P, Boyazoglu J. 1999. Present state and future outlook of the small ruminant
sector. In: Haenlein, GFW, Fahmy MH (Eds.), Proceedings of the Eight World
conference on Animal Production, Seoul, Korea, June 28-July 4, 1998.
Small Rumin Res 34:175-188 Ethiopia, October, IFS Province Report No. 14, pp79-109
Pasha, SA. 1990. Sustainability and viability of small marginal farmers with reference to
animal husbandry and common property resources. National Institute of Rural
Development, Oct 8-10, Hyderabad.
Research in Goats Indian Experience. (Ed. Bhattacharyya, NK, Singh, K). 1992. (Director,
Central Institute for research on Goats)
Rout PK, Kumar A, Mandal A et al. 2010. Characterization of casein gene complex and
genetic diversity analysis in Indian goats. Animal Biotech 21(2):122-134.
Rout PK, Singh MK, Roy R, Sharma N, Haenlein GFW. 2004. Jamunapari-a diary goat
breed in India, Dairy Goat Journal (USA) 82(3):37-39
Rout, PK, Khan, BU, Roy, A. Goat: contribution for sustainable development in India.
Indian Journal of Small Ruminants 8(1): 1-9, 2002.
RTF. 1987. Report of task force to evaluate the impact of sheep and goat rearing in
ecologically fragile zones, 1987, Govt. of India, Ministry of Agril., Dept. of Agril.
and cooperation, New Delhi.
Sastry, NSR. 1995. Livestock sector of India: Regional aspect. International Book House,
Lucknow.
Verma, AR. And Prasar, GC. 1991. Goat keeping for profit. Indian Farming, 41(2) 31-34.
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Chapter
18
MODEL DAIRY FARMING FOR
ENTREPRENEURSHIP
DEVELOPMENT
Ravinder Kumar, Amit Kumar Verma, Rajbir Singh and A.K. Das

1. INTRODUCTION
India’s livestock sector is one of the largest in the world. Total
livestock population in India is 512.05 million. Contribution of cattle is 190.9
million (37.28%) and buffalo is 108.7 million (21.23%). India is producing
about 176.35 million tons of milk annually. India ranks first in milk production
in the world. About 20.5 million people depend upon livestock for their
livelihood. About two third rural community get its livelihood from the
livestock. .Livestock contributed 16 percent to the income of small farm
households as against an average of 14 percent for all rural households. It
also provides employment to about 8.8 per cent of the population in India.
India has vast livestock resources. Livestock sector contributes about 4.11
percent of total GDP (Gross Domestic Products) and 25.6 percent of total
Agriculture GDP (19th Livestock Census, 2012). Milk plays an important
essential food for human life, since babyhood to end of elderly life. Milk is
an important source of food for neonatal life. Apart from energy, it provides
passive immunity to young ones in the form of colostrums, which protect
the babies from pathogens. Milk contains all the vital nutrients almost in
balanced proportion . Milk is a rich source of calcium, magnesium, selenium,
riboflavin, vitamin B12 and pantothenic acid (vitamin B5), hence play a key
role in maintaining our health and wellness. Due to increasing population of
the country, the demand of dairy base product will be increase. However,
nearly 33% of the gross Domestic population from agriculture and has
66% of economically active population, engaged in agriculture. The share
270

of livestock product is estimated at 21% of total agriculture sector. There is

strong recognition about the fact that dairying could play a more constructive
role in promoting rural welfare and reducing poverty. There is need of
enhancement in proper milk production system because India is having
large production by mass people landless and marginal farmer’s, so we
cannot avoid present mass production system, the system may be alter into
advanced system by making community dairy farming system. However,
mini and micro dairies are rapidly growing nearby urban areas.
The quality control of raw milk in rural settings is a quite challenging
and has to be taken up, if we want Indian Dairy products acceptable globally.
In Indian scenario, the dairying is a good source of income for small/marginal
rural farmers and landless labourers, hence co-operative to community dairy
farming system is a better choice. The manure produced from dung is rich
in organic matter and helpful in improvement of soil fertility and ultimately
in increasing the crop yield. The gober gas produced from the dung may
also be used as fuel for domestic purposes as cooking, running generators
to produce electricity, which may be used for various purposes like drawing
water from well. The agricultural by-products, residues and surplus fodder
are efficiently utilized as feed for the animals. Most of the times, agriculture
is seasonal, hence dairy farming is a good employment opportunity rount
the year.. Development of Mini and micro dairy hubs linking smallholder
farmers to the industry, by making all cluster villages cattle is to brought
into Bulk Milk Cooler (BMC)/CC collection point , where AMCU station
operate automatic milking machines, immediate cooling and transport by
tanker to process plant. Now a days, there are so many companies like
AMUL, Parag, Verka, Nestle, Ashmi etc.
2. PROBLEMS OF DAIRY FARMING IN INDIA
In India, the major constrints in dairy farming is low milk productivity
in animals, poor animal health services, lack of proper data on dairy sector,
weak organized retailing and established cold chain, large unorganized market
sector (80%), poor raw milk quality and lack of Good dairy practices. Besides
these, weak financial and policy support for dairy industry and low efficiency
dairy plants and inappropriate milk collection system are also a hurdle in
growth of dairy industry. Like any other business/ organization, dairy farming
is also having certain challenges. The major challenges of this sector are
high infrastructure and feeding cost for farmers. Most of the farmers don’t
serious about the total expenditure and profit from this business. They don’t
count the value of green food grown by themselves withtheir crops. Breeding
is another important factor for economic milk production. But the farmers
 271

are generally unaware about this due to ignorance, poor extension education
programmes by the government. Thus, for establishing the dairy farm in
economic way, there is utmost requirement of hardwork, proper care and
management of animals,. In India, one of the family member generally the
homemaker of the family is responsible for caring the animals. But in
commercial dairy farming, there is requirement of experienced professionals.
If one take care of these constraints, then he may be able to run the
commercial dairy farm in profit by continuously visiting the other dairies
establishment run by public and private sectors..
3. LIVESTOCK DEVELOPMENT INITIATIVE BY GOVERNMENT
Central and state governments have launched various livestock
development programmes in the country by implementing the modern
technologies in animal breeding, reproductive management and healthcare
management. Many research organizations like National Dairy Research
Institute (NDRI), Karnal, Indian Veterinary Research Institute (IVRI),
Izatnagar, Central Institute of Research on Buffaloes (CIRB), Hisar, Central
Institute of Research on Cattle (CIRC), Meerut, Central Institute of
Research on Goats (CIRG), Mathura and various state agriculture /
veterinary Universities (SAUs/SVUs) are devoted to sustainable basic and
advance research in the concerned field. Government is also focusing on
the possibilities of production and use of sexed semen in small holders’
dairy production system. CIRC and CIRB are continuously working on
indigenous breed improvement for Sahiwal, Gir, Crossbred (Friewal) cattle;
Murrah and Nili Ravi buffalo breeds. However, for sustainable development
in dairy sector, there is an acute need of development and implementation
of suitable farm level policies keeping in view the ensuring socio-economic
dynamics and the existing competitive resource advantages. A strong effort
is desired in linking the milk producers to the organized supply chain to
ensure stable milk prices within the reach of consumers. The Indian dairying
is maintaining its milk production growth at an even rate to meet its domestic
needs but with the faster economic development, it has to be in better way
to cope with increasing demands.. There is challenges in small holder dairy
farming, which cane be solved by increasing the productivity and linking
the production with the consumer demand. Wholehearted efforts are
required in the areas of nutritional management, improved breeding and
animal health care systems, financial inclusion, dedicated extension services
for dairy farmers and development of procurement infrastructure with ICT
support. Capacity building of small livestock owners, particularly women,
and promotion of collective farming is essential for development efficient
value chains. One of the major constraint has been the feed prices which
272

are quite high relative to the milk prices. There is great opportunity to exploit
the world markets provided India is able to take care of its constraints and
strengthen its value chain to deliver quality milk.
4. FUTURE DEMAND DRIVE IN DAIRY BUSINESS
Due to migration of population in urban area and less interest in
animal rearing, a large rural market gap and quantity of available milk for
processing will increase day by day. Fast growing economy and
diversification, large market and investment will provide golden opportunity.
Moreover, increasing income of consumers, changing life style and
preference for milk and milk products, more number of adult consumers,
untapped indigenous milk products market and exports are also increasing.
On the other hand, there are some challenges for low cost human resource
and employment generation for rural population. India need to immediate
focus on this sector related issues like food safety, unhygienic practices by
farmers at farm. Injudicious use of medicines particularly antibiotics on
milch animals should also be controlled. Unfriendly WTO regime and Imports
from other countries also a factor and we have need to manage through
better govt. policies.
5. EXTENDING SCOPE FOR COMMERCIAL / CORPORATE
DAIRY FARMING IN INDIA
One of the emerging trend in India is commercial dairy farms in
the urban and peri-urban areas of the metros and big cities. These dairies
mainly cater to the needs of the urban consumers in the from of liquid raw
milk. Thus, there is ample scope of organized & modernized dairy farming.
Commercial dairy farming is much different from villagers who rear few
cows. Later does not employ labor, cultivates most of the green fodder
needs on his own land with own labor, does not have to pay bank interest
and above all invest too low in infrastructure facilities. Though a profitable
business venture dairy farming in India requires hard work, proper planning,
active and very alerts managers and supervisors. We all have heard many
success stories in dairy farming. In today’s technological world there have
been many advances in modern dairy farming. Everything from feed for
dairy cows to milk processing equipment has added tremendous scope to
the dairy farming industry.
7. MODEL DAIRY FARMING
Main objective of model dairy farming: The main objective is safe and
quality milk produced from healthy animals using good management practices
that are sustainable from an animal welfare, social, economic and
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environmental perspective.
Why commercial/model dairy farming?
Beside the employment benefit, so many factor directly provides
excellent opportunity to start this business as given below:
 Opportunity for export of milk and milk products
 Organized and well planned project.
 Better management and operations of project.
 Better climate control.
 Cost effective.
 Healthy and happy animals.
 More production with better hygiene.
 Better return to investment and profits.
 Opportunity for export of milk and milk products
 Free antibiotics milk which is suitable for infants to elderly people
 Safe, Health and hygiene of milk will increase the shelf life of milk
Considerable advance practices of a model dairy farming:
At a model dairy farm, animal health, milking, hygiene, nutrition
(feed & water), animal welfare, environment, socioeconomic management
etc are the major practices, which should be followed properly for
sustainability of the farm.
a) Uniqueness in management system:
1. Animals need to be healthy and an effective health care programme
should be in place
2. Milk should be stored under hygienic conditions
3. Provides feed and water in suitable quantity and of good quality
4. Animals should be kept according to the following simple principles:
 Freedom from hunger, thirst, discomfort, pain, injury and disease
 Freedom from fear to engage in relatively normal patterns of
animal behavior
274

 Milk production should be environmentally sustainable and

cause minimal damage to the surrounding environment
 Human resource and financial management ensures the
sustainability of the enterprise
 Arrangement for animal waste (Urine, dung, water etc.)
 Record keeping and modern application e.g.: Milking, chilling
and reproduction management.
b) Care and Management: Taking good care is the key to every
livestock farming business. So, the animals present in dairy farm
should be taken care off. As prevention is better than cure, so the
vaccination against economically important diseases like Foot-and-
mouth disease, Haemorrhagic septicaemia etc is utmost important. .
Provide them nutritious food and clean water regularly. The
emergency and routine medicines should be stocked at dairy farms
for immediate first hand support.. With the increase in milk production,
the dairy farming will be a profitable business.
c) Breeds: There are numerous indigenous (Indian) and highly productive
foreign (exotic) breeds available in dairy animals, which can be chosen
for establishment of dairy. Both the cows and buffaloes can be raised
together in separate rows under the same shed. The fat percentage
of Cow’s milk (4%) is lower than that of buffaloes milk (6%). By
market survey, the demand of milk can be identified. . For profitable
commercial dairy production Murrah, Surti, Mehasani, Jaffrabadi,
Badhawari etc. are common and popular buffalo milch breeds, while
Gir, Sahiwal, Red Sindhi, Tharparkar are popular cow breed. Highly
productive exotic breeds like Holstein Friesian and Jersey etc. or
their crosses like Karan Fries and Frieswal etc may also be reared
for high milk yield. All those breeds are suitable for farming in the
Indian weather. Always keep in mind the market demand, while
choosing breeds for dairy farming business.
d) Feeding: Feeding of good and high quality nutritious feed is important
for ensuring proper growth and good health of the animals. So, always
try to feed them sufficient amount of nutritious feed. Green fodder is
very necessary for the animal. It provides water along with vital
nutrients to the animals and ultimately increase the milk production
in animals. Green fodder also reduces the need of concentrate feeding
in animals thus also helps in reducing the feed cost. Concentrate
feeding also help in maintaining the good health and milk production
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in animals. As a thumb rule, dairy animals require 2.5 kg of

concentrate as maintenance. For milk production 400gms of
concentrate per litre of milk in cow, while 500gms per litre of milk in
buffaloes is additional requirement for lactating animals. If the animal
is pregnant then add 2.5 kg of concentrate for maintaining the
pregnancy. If possible, try to make a grazing place for your animals,
this will be helpful for the exercise of animals. Along with nutritious
foods, always provide them sufficient amount (ad libitum) of clean
and fresh water. Dairy animals need more water than other animals.
Generally, a milk producing animal needs five liters of water for
producing one liter milk. So, always serve them sufficient amount of
clean and fresh water.
e) Reproduction: Reproduction is directly related to milk production in
animals. Thus, to improve or develop the condition and production of
cow or buffaloes it should meet reproduction with a proper plan. The
bulls used for breeding or the semen should be of good pedigree in
terms of milk production.. Timely, breeding of the dairy animals with
good quality semen is required for maintain the milk production in a
dairy farm..
f) Milking: Dairy animals should be milked twice a day i.e. once in
dawn and another in evening . Before milking, the teats, udder and
hand of the milker should be cleaned properly with fresh water along
with potassium permanganate solution or any other good antiseptic.
For high yielders (>10 litres of mil per day per animal), milking machine
may be used to collect milk.
g) Housing: The need for livestock housing is important from the point
of animal health, welfare and comfort, hygiene, efficient and
economical use of labour. A suitable and comfortable housing is
essential to make best use of the efficient environment. Generally 40
square feet inside shed and 80 square feet open space is required
per dairy animal. In small scale dairy farm ( 20 animals), 3000 square
feet land area is sufficient enough, while for medium scale dairies (
100 animals), 13,000 to 15,000 square feet space is required. However,
ensure availability of all types of essential facilities in the house
includes proper ventilation, sufficient flow of fresh and clean air,
sufficient space etc. (Table 1).
Goal of ideal housing: The goal of housing is to protect the animal
from adverse environmental conditions such as cold winds, rain and
direct sun light. Proper housing contributes animal comfort, good
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sanitation and efficient farm work.

Calf pen: This is meant for housing young calves separately. It can
be located either at the end or on the side of the milking barn. This
facilitates taking calves to their dams quickly. If there are large
numbers of calves, the separate unit of calf shed should be arranged
and located nearer to the milking shed. Calf pens should be well
ventilated, well lighted, clean, dry, adequately bedded using soft
material. It is better to rear calves in individual calf pens. If room for
individual pens is not available calves must be tied properly for 15 to
20 minutes after feeding.
Fixed House Design: In this method, the cows are always tied. For
this reason it is very difficult to clean the cow house regularly.
Common cow house are two types.
Table 1: Per animal housing requirement (in M 2) :
S.No Categories of animals Feeding place Standing place Open area (M 2) /
(age wise) area at or covered (Loose housing)
manger (m2) area (m2)
1. Up to 4 to 6 months 0.2 - 0.3 0.8 - 1.0 3-4
2. 6 to 12 months 0.3 – 0.4 1.3 – 1.6 5–6
3. 1 to 2 years 0.4 – 0.5 1.6 – 1.8 6–8
4. Adult cow 0.8 – 1.0 1.8 – 2.0 11 – 12
5. Pregnant cow 1.0 – 1.2 8.5 – 10.5 15 – 20
6. Bull (separate place 1.0 – 1.2 9.0 – 11.0 20 – 22
for each bull)
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Fig. 1: Tail to tail housing system

h) Keeping farm record: Records are useful in analysing the profit or

loss of dairy. Records of herd, calves, birth and death record, breeding,
milk records, feeding register, sales and treatments records are
necessary. For proper management, first of all set the targets. ..
7.1 Key Drivers of Stainability of Model Dairy Farming
Sustainable dairy farm management practices are critical for
ensuring the profitability of dairy farms. This will help in keeping low cost
of quality milk production and providing milk to consumers. The following
key drivers impact the sustainability of dairy farms and are essential for
making it globally competitive.
 Sincerely care of breed improvement
 Good soil and forage management
 Good young stock management
 Good nutrition and feed management
 Timely disease prevention and control
 Good reproductive system and timely heat detection
 Staff skill development training
 Proper farm waste management
 Value addition of milk
 Market and entrepreneurship skill
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Feed and Fodder Management: Feed is one of the critical components

in ensuring good milk yield and also constitutes approximately 60% to 70%
of the operating expenses. With the shrinking of agriculture lands and
pastures, availability of good quality feed and fodder for animals is becoming
a challenge. There is 34% current deficit level of green fodder and
concentrates.. The alternate strategies to fill this deficit is maximization of
the usage of crop residues and leguminous forages, promotion of balanced
feed rations, integrated watershed development, approaches for encouraging
fodder production and training to farmers in hay and silage.
Breeding and Health Care Management: Lack of awareness amongst
the dairy farmers in India on technical skills regarding breeding practices
including record keeping and progeny testing is the key deterrent for
improving herd quality. It can be addressed through expansion of artificial
insemination (AI) network and extension services provided by research
institutions, SAUs/SVUs through their Krishi Vigyan Kendras and
involvement of private sectors. Breeding services using superior quality,
disease free germplasm with artificial insemination will be helpful in
addressing dressing these issues. Timely diagnosis and treatment of diseases
and use of preventive measures such as vaccines will be helpful for better
livestock health that will further improve quantity and quality of milk.
8. SKILLS REQUIREMENT FOR DAIRY FARM BUSINESS /
ENTREPRENEURSHIP
Dairy farming is much more complex and needs to be managed
scientifically. Dairy farmer / manager managing such dairy farm requires
broad knowledge, wide variety of multi-tasking skills and keen business
acumen.
Requirement of multiple skill activities of Dairy Farmer (Manager):
To a dairy farmer/ manager, should spend 50 percent of time in Management
of the Dairy herd and remaining time in supervising employees, ration
preparation and feeding, raising of replacements, milking, upkeep of facilities,
grounds and equipment’s, pasture and herd management etc. He should
also spent 30 percent of his time in herd Health and reproduction like
treatment and care of sick animals, managing dystokia with the help of
veterinarian heat detection and breeding of animals. Another important
task is replacement of employees, who are sick or on leave. He should
also spend 20 percent of his time in Office Work and procurement and
record keeping like herd health, production, reproduction inventories, monthly
inventories, order supplies, repairing the damaged infrastructure
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Knowledge and Skills Required: A commercial dairy farmer/ manager

should be well educated in farm operations and trained in providing first aid
treatment of general illness and injuries. He should have sound
knowledgeable in dairy animal feeding schedule, farm operations, record
keeping, motivational and communications skills etc.
Skill of Feeder: Feeder should spend 70- 80 percent his work time in
feeding and caring for all the livestock. Keep the animal areas, lots and
barns clean and free from manure and extraneous objects. Dung is very
dangerous in dairy animals. The dirty animal shed attract the pathogen and
flies that will lead to diseases in dairy animals. Check all lots at least five
times per day (dry cow, heifer and calf areas) to be certain cattle are not
under stress due to weather conditions allow the production of a high quality
product and promote animal well-being and comfort.
Feeding Responsibilities: Check all animals on a timely basis (three to
four times per day) to be certain they are receiving adequate feed and ad
libitum water. Feed cows and calves in a timely manner. All the
equipments at dairy farm should be maintained as prescribed by
manufacturer’s suggestions. If there is any difficulty in working order of
any farm equipments, then report to the concerned person or dairy manager
directly. Regular testing of feed and fodder for nutrient testing should be
done in good laboratory. Be certain all pastures and fencing are maintained,
if not repair these items as per need. .
Treatment: It should be done on top pripority under the supervision of
veterinarian. Routine deworming and vaccinations of animals is necessary
for maintain the sound health of animals. Assist in any special projects or
routine maintenance of farmstead in coordination with the manager.
Skill of Milker: He should spend 70 percent to 80 percent work time to
perform the duties of milking and related activities for lactating cows.
Milking Responsibilities and Procedures: Prepare milking equipments,
buckets and bulk tank for milking. Then, bring the dairy animals for milking
or help other employees bring in cows if needed or requested. Wear gloves
when milking to help prevent spread of mastitis-causing organisms. Always
follow the recommended pre-milking preparation like washing of teats and
udder of animals, hands of milkers before milking. Milking should be
performed in an orderly, proper and consistent manner. If the animals is
under treatment and as per drugs prescribed, there is some withdrawl period,
then it should be properly followed so that the milk from treated animal is
not put into the bulk tank. Milk from mastitic animals or suffering from
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zoonotic diseases should not be mixed with bulk tank. If the milker found
any case of mastitis, then immediately report to concerned staff engaged in
animal health, so that proper treatment can be started as early as possible.
. After completion of milking, keep all the machinery and equipments
sanitized as per the manufacturer’s specification and Grade A Standards of
the Public Milk Ordinance.
Milking Related Activities: The other milking related activities like bring
in and out the cattle to milking shed, maintain milk records, animal
identification by tags and other activities as directed by farm manager, is
also required. These responsibilities may include, but are not limited to the
following responsibilities:
 Care of springers and animals at the time of calving
 Feeding and care of calves
 Feeding, cleaning and care of milking herd
 Maintenance of free-stalls
 Heat detection, Artificial Insemination
 Record keeping
 Cleaning and maintenance of office building
 Maintenance of grounds, pasture, fences
 Maintenance of vacuum pumps
Selection of site for dairy farming:
Farmers should consider greatly for selection of sites to build the
dairy farms with new structures. He should be aware of location of the
dairy farms such as nearby neighbours and public areas, environmental
issues like water quality, odours and files, litter management, electrical supply
etc. and laws and regulations that affect farming operations.
Criteria for site selection: Some of the parameters like soil type, elevation,
topography, sunlight, protection from wind, marketing, durability, labour,
accessibility and surrounding etc should be considered before the
establishment and construction of a new dairy farm. .
9. SUMMER MANAGEMENT AT MODEL DAIRY FARM
Due to high ambient temperature, productivity and efficiency of
dairy animals goes down drastically during the summer season particularly
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in northern parts of India.. This will become more important in case of

buffaloes..
Heat stress: This type of stress occurs in animals when there is imbalance
between heat production (thermogenesis) within the body (gain) and heat
dissipation (thermolysis) from the body i.e. impaired thermoregulation.
Increase in environmental temperature may cause increased gain
incomparison to heat loss from the body and ultimately cause heat stress.
Heat is also produced within the animal body due to metabolism (production
of milk, eggs, meat, offspring etc).. This heat stress will affect the high
yielders that that of low yielders. Hence utmost considerations must be
taken to protect the high yielders from heat stress.
Signs of heat stress:
The common clinical signs of heat stress are restlessness, lethargy,
reduced appetite, (to minimize metabolic heat production), increased thirst
and more crowding around the water tanks, decreased activity, crowding
under shade, usually more animals remain standing rather than lying down,
increased respiration, body temperature, sweating and panting to lose more
heat. Other common signs are increased salivation, reduction in heart rate
and maintenance requirement may increase by 20-30% in animals under
heat stress.
Tips for summer management: Animal shelter should be constructed in
east west orientation so as to avoid maximum solar radiation during summer.
Nutrition- Offer the high amount of feed during the cooler period of the
day such as early morning or late evening. Feeding 60 to 70 percent of the
ration between 8 pm and 8 am has successfully increased milk production
during hot weather. Feeding bypass protein (fish meal) and bypass fats and
reducing the amount of fiber in the diet is helpful in minimizing the metabolic
heat production. Soaking of concentrate in equal amount water for 20-30
minutes helps in better utilization of nutrients and reduces dustiness in
concentrates. Supplementation buffer sodium bicarbonate and magnesium
oxide help to maintain rumen pH in summer season. Feeding of antioxidants
like vitamin A D and E, Zinc etc reduce heat stress and prevent mastitis
Water- Always provide unrestricted access to cool, fresh and clean water
to dairy animals especially during summer season.
Heat stress alleviation- high producing cows required more attention. There
are so many tools to overcome this problem through shades, fans, fog misters
and sprinklers are used to alleviate heat stress. High velocity blast fans
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mounted on side walls can also help in reducing heat stress during July to
September.
Fogger system-Sprinkling water with air draft or wind from fan on heat
stress vulnerable animals helps to decrease their body temperature and
respiratory activity.
Other Managemental strategies: Avoid transporting livestock in hot
weather. Reduce biting flies populations (with improved sanitation, repellents
and traps) which tend to cause cattle to bunch together. Reduce parlor
walking distance. Reduce time in holding area. Improve ventilation. In areas
of extreme heat, it is even more important for cows to give birth in good
body condition because after parturition their dry matter intake will be
lowered by heat stress, as well as the usual low intake immediately after
calving. Under these conditions dairy farmers must go for artificial
insemination rather than using natural service of heat stressed bulls. Teat
dipping with germicidal dips is recommended. Handling cattle can elevate
their body temperature by as much as 3.5°F. Therefore, avoid unnecessary
handling of animals during intense heat.
10. WINTER MANAGEMENT AT MODEL DAIRY FARM
Production performance of the animal will also be affected when it
is too cool because increased proportion of energy will be consumed in
maintaining the body temperature and productivity depends on the ability of
the animal to keep normal and stable body temperature.
Protective measures to prevent the effect of cold stress:
Increase barn temperature- Calves are more susceptible for winter. Supply
of heat during winter will be helpful in keeping the calf healthy, less chances
of calf pneumonia, diarrhea and reducing the calf mortality. Reduce humidity
to ensure beer ventilation, preventing excessive moisture in sheds, roof
dripping and ground freezing phenomenon. Ventilation should be carried in
afternoon. Less water should be used in winter barn to wash the ground
and dry cleaning should be followed. In the afternoon sunlight cattle should
be kept out of the barn. Bedding should also be provided to animals for
their protection from the cold floor. Waterers or water tanks should not be
frozen. Provide lukewarm water to the animals for drinking purpose. Cold
weather increases feed needs of cows. Hay provides more heat during
digestion than concentrate feeds.
Cows need dry, draught-free resting area. During winters, provision of
dry, clean bedding keeps the animal dry and insulates the udder against cold
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temperatures and pathogens. Having dry teats when the cow leaves the
parlor is important. One way to lessen the risk is to dip the teats, allow the
dip of about 30 seconds and then blot dry using a paper towel. Protect the
animal from frostbite. Such practice helpful in mastitis control also.
Effect of cold stress on calves: calves born in winter and early spring as
well as wet and cold calves are more prone to cold stress or hypothermia.
Precipitation adds to the negative effect on calf survival when temperature
drops, so it is important to combat cold stress (hypothermia) in newborn
calves.
Signs of cold stress:Rectal temperature is the most accurate method of
determining if a calf is experiencing hypothermia.
 Mild hypothermia- Body temperature drops below 100°F; Severe
hypothermia- Body temperature drops below 94°F.
 Vital organs are cold and impaired brain function results.
 Calf shivers to increase heat production and shunt blood from body
extremities to the body core.
Protective measures: These include warm water bath, warm air or heat
lamps and warm blankets. Blankets are most useful for calves less than 3
weeks of age that are not yet eating grain. Warm blankets should not be so
hot that they cause skin burns or sweating during the day. Thick, dry straw
or sawdust at resting area should be provided for better insulation. Wind
drafts must be avoided because they encourage heat loss. Young dairy
calves have very little stored fat they can use for warming themselves. So,
extra energy by feeding fat rich diet is necessary to cope with cold stress
Additional amount of feed (starter, milk replacer, or milk) that a calf would
need to eat to compensate for extra energy used to keep warm during cold
weather. Repeated changes in the calf’s diet should not be done. Calves
less than 3 weeks of age require extra energy, thus increase the amount of
milk or milk replacer to provide extra energy. Calves that are eating starter,
especially those over 3 weeks of age and can more easily cover their
increased energy needs by voluntarily eating more grain is beneficial in
terms of generating heat. In cold weather, provision of warm water three
times per day for a minimum of 30 minutes each time in order to ensure
calves have ample opportunity to drink.
Closing air inlets restricts the ventilation rate and causes moisture
to accumulate in the shed. As moisture accumulates, it will begin to condense
on cold surfaces, and if the surfaces are below freezing, frost will form. In
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severe cold weather and during blizzard conditions, air inlets can be partially
closed to reduce airflow blowing into the barn. The minimum inlet opening
during severe cold weather is one-half inch for each 10 feet of building
width. (There should be an inlet on each long side of the building.). When
normal winter weather conditions return, eave inlets should be reopened to
the standard one inch per 10 feet of building width on both sides of the
building. Of course, eave inlet adjustments are much easier if the inlets
have been designed to be adjusted. Boards on hinges are the most common
type of adjustable eave inlet.
11. OTHER ROUTINE MANAGEMENT PRACTICES AT MODEL
DAIRY FARM
In a dairy farm, the primary objective is to produce the quality milk
and sell the same with profit. Therefore, routinely some activities or
operations are carried out to meet this primary object.
Weaning- Weaning is defined as the separation of young calves from their
mother after birth. In dairy animals, weaning may be followed either just
after birth called as weaning at birth or zero day weaning, or after colostrum
period i.e. 3-4 days after birth. Weaner calves are fed milk @8-10% of
their body weight.
Milking practices- Milking is the most important daily routine activity in
dairy farm. Milking is done commonly twice in most dairy farm morning
and evening. However, if milk productivity of animal and labour availability
is more then go for three times milking per day i.e. early morning, at noon
and evening in high yeilders keeping the duration of milking interval equal.
Milking should be conducted gently, quietly, quickly, cleanly, completely and
at regular intervals.
Feeding- Feeding activity is most important daily routine operation and
proper understanding of nutrient requirement and feeding management will
reduce the expenses. Dairy animals are generally allowed for free access
to roughages but measured amount of concentrate is given based on body
weight for maintenance, milk yield, milk fat percent, pregnancy and growth.
The roughage and concentrate are generally given separately; during milking
only concentrate is given. The daily requirement of dairy cattle and buffaloes
are calculated based on daily dry matter intake. Cattle generally eat @2-
2.5 kg dry matter per 100 kg body weight. As a thumb rule up to 4-5 liter
milk yield no concentrate is needed if sufficient green fodder is available. If
a cow giving 10 lit milk with approximately 400 kg body weight then give
20-25 kg greens, 3-4 kg dry fodder and 5 kg concentrate.
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Exercise in dairy animals- In conventional housing management where

animals are tied throughout the day and night, exercise is compulsory.
Exercise should be recommended daily at least once during morning just
after milking for ½ to 1 hour.
Washing- Washing in dairy animals is generally followed to remove the dirt
and loose hairs before milking for clean milk production. Washing of flank,
udder and tail are washed with clean water followed by drying with a clean
towel/cloth.
Weighing- Young growing calves are commonly weighed at weekly interval
as their growth is much faster than the Adults. However, in adult animal
weighing is followed at fortnight intervals or monthly interval depending on
the labour availability. Regular weighing of dairy animals is essential for the
optimal dairy farm management.
Marking/Identification- Marking of animals soon after birth for easy
identification is important managemental practice in dairy farm. In cattle
and buffaloes ear tagging is done using either self piercing or non-piercing
plastic or non-rousting tags. Under branding, hot iron branding using hot
branding iron or cold branding using branding iron dipped in liquid nitrogen
is vogue. Now-a-days for easy and automatic identification, electronic
identification of animal is done using either electronic ear tag or neck collar.
Debudding and Dehorning- Debudding is the process of removing horn
bud in young calves before its attachment to skull within 3-5 days after
birth. On the other hand dehorning is the removal of horn after it has attached
to the skull in older calves. However, in most dairy farm debudding is
practiced instead of dehorning as later is more painful and difficult. Chemical
dehorning- Dehorning may be practiced by chemical cauterization using
caustic soda, caustic potash or Silver nitrate sticks. Debudding may be
done mechanically using red hot iron or electrical dehorner pressing on the
horn bud. Electrical dehorning- Electrical dehorning is best as it requires
only 10 minutes and less hazardous compared to chemical or hot iron method.
Grooming- Grooming or brushing of body hair coat is an important daily
farm activity, which keeps the body of animals clean and healthy. For
grooming blunted type brush is used, if not available then use coarse rope
made from paddy straw, coconut coir or dried grass. In India, grooming
generally practiced before milking along with washing to improve the clean
milk production.
Castration-Castration is the unsexing of both male and female, and during
castration there is removal of testis and ovaries, respectively. However,
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surgical removal of testes produces pain to the animals. Moreover, castration

with burdizzo castrator is most commonly used bloodless castration, where
the testicles are not removed rather the spermatic cord is crushed and
separated from each testicles.
Burdizzo castration method-Castration is generally preferred at young
age preferably within 1 year. Castration should be performed during cold
season and strictly avoided in rainy season.
Hoof trimming- Hoof trimming is a routine procedure in dairy farm which
corrects the hoof problems or lameness and extent the productive life of
cows. The foot trimming in animals practiced at 6 month interval and cut
only the extra grown hoof otherwise if excess than causes pain and bleeding.
Record keeping- Record keeping is an important daily farm activity, helpful
for the evaluation of individual performance of cow and economic
assessment of dairy farm as a whole. Daily farm record data entry is a
challenge with rewards. The different types of record maintained in a dairy
farm are birth register, body weight register, herd register, production register
(milk yield register) death and disposal register, feed and fodder register,
breeding register, treatment register, health care register, expenditure and
income register, labour records etc.
Calves feeding management: Reticulo-rumen is non-functional in calves
and hence feeding of calves should be treated as non-ruminant and they
are not equipped to utilize cellulose. The calves cannot utilize roughages
containing higher amount of cellulose. To encourage the early development
of rumen and reticulum the calves should be fed with good quality leguminous
hay and other roughages. Urea should not be included in calves ration
because the calves have little capacity to utilize non-protein nitrogenous
compounds. B complex vitamins also are dietary essential for calves in
addition to vitamin A and D.
12. REPRODUCTION MANAGEMENT AT FARM
A sound reproductive program is essential to the financial health of
the dairy. A fundamental goal should be to breed cows back in a timely
manner so that daily milk production remains high and a steady supply of
new heifers is available for replacements or sale. It is not advisable to use
artificial hormones for breeding or to treat the animals with reproductive
problems. Good dairy farm should follow the measures that pertaining to
heat cycle detection and natural alternative treatments that will help to
increase the fertility of the farm.
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Best practices for improvement of dairy farm:

Observation of standing heat is the best way to judge the time to
inseminate or breed a dairy animal. Some farms may use some heat detection
devices or other physical methods but nothing beats observing the animals
for heats twice daily.
Observation of standing heat: Animal bellow, stand to be mounted,
discharge through vulva, thickening of vulval lips are major signs of heat.
Cows ovulate about 12 to 16 hours after a standing heat so most of the
farmers have a habit of “Morning- Evening” rule for breeding. If a farmer
observes a cow in standing heat in the morning, he/she will breed her that
evening; if a cow is observed in standing heat in the evening, she/he will be
bred in the morning.
Reproductive problem and its solution-There are so many reproductive
problems at a farm among these are major like silent heat, anoestrous,
repeat breeding, utero-vaginal prolapse, subclinical endometritis, retention
of placenta, abortion and dystocia etc.
13. CLEAN MILK PRODUCTION AT FARM
Clean milk production following good hygienic practices is an
essential pre requisite for obtaining whole some and superior milk quality.
Clean milk may be defined as “Milk drawn from the udder of healthy animals,
which is collected in clean dry milking pails and free from extraneous matters
like dust, dirt, flies, hay, manure etc. Clean milk has a normal composition,
possesses a natural milk flavor with low bacterial count and is safe for
human consumption”. There are many advantages of clean production like
prevention of milk spoilage in short period. Increase the quality and shelf
life of the milk and its products. It controls the spread of infectious disease
through milk.
Steps for clean milk production:
1. Animal shed and environment: The floor of the milk shed should
be swept with clean water, and disinfected with one-percent
bleaching powder solution to arrest cross contamination and
spreading of undesirable odours.
2. Animal: The animal itself is one of the most significant sources of
contamination, care and management of the animal and its health
is therefore the starting point for clean milk production. Milk from
diseased animals should be kept separate and disposed of safely.
Animals suffering from any contagious disease, including mastitis,
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should be segregated from the healthy ones.

3. Milking method: In hand milking, the danger of contamination
coming from the milker’s hand is higher as compared with machine
milking. The milker should therefore be free from contagious
diseases. Nails should be well trimmed; she/he should wear clean
clothes and should wash her/his hands with soap and water before
milking, then dry with a clean towel. In modern dairy farms, the
milking is done with the help of milking machine in very hygienic
way without hand touch. The operation of milking is very fast and
the quality of milk also superior.
4. Utensil cleaning: Utensil must be thoroughly cleaned with water
followed by hot water rinsing. Dirty milking equipment is one of
the main sources of infection of milk. About 15 minutes before
milking, milking equipment should be rinsed with a sanitizing solution.
5. Personnel hygiene: The Milk handlers need to wash their hands
thoroughly with cleaned water followed by hot water rinsing or
sanitization with sanitizing agent to avoid physical and biological
contamination.
6. Milk handling and testing: Milk needs to be handled hygienically
without spillages, while transferring. Milk needs to be filtered in
order to be free of dust and foreign particles. All the filled milk
cans are to be kept in organized way in very clean and hygienic
way in a shade without direct exposure to Sunlight. The milk is
susceptible to get deteriorated and develop oxidized flavours, if
kept exposed to direct sunlight. The milk samples to be drawn
using an appropriate and cleaned sample device as per the quality
control guidelines.
7. Transportation of milk: The Milk cans to be transported in a
covered/protected hygienic milk vans.
14. MANAGEMENT AND UTILIZATION OF DAIRY FARM
WASTE
Animal manure is rich in nitrogen, phosphorus and potassium.
Manure has several beneficial effects on soil properties, in addition to
providing supplemental nutrients for crop growth. Composting is a sustainable
waste farm management practice that converts a large volume of
accumulated organic waste into a usable product. When organic wastes
are broken down by microorganisms in a heat-generating process, waste
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volume is reduced by almost 50%, many pathogens and weed seeds are
destroyed, and a useful, potenially marketable product is produced. Major
component of dairy farm waste are cattle manure, spoiled hay and feed,
bedding of animal etc. There are various techniques used like composting,
biogas production (anaerobic fermentation), aerobic oxidation in ditches/
Lagoons/lakes, direct application in field. Use as fish feed in fish ponds and
growing algae (diluted slurry) at a farm.
Composting: In composting pile of solid waste is collected in pit 1.5 m
deep and 3×4 meter dimension or large as per requirement (3 cubic meter/
adult animal units) as per (Allnutt design described by R.G. Linton). This
design has two pits with walls on all three sides covered on top with
temporary roof to prevent desiccation, and alternative filing and emptying
has been suggested. The front side should have a gutter which should be
filled with cresol and water to control fly breeding and the front side should
have a vertical sliding shutter to prevent debris falling into the gutter. The
manure should be dumped and well packed in each compartment separately.
While one is filled and packed, fermentation and decomposition occurs in
the other which was filled earlier. The manure should be turned periodically
to ensure uniform decomposition; this also enhances the destruction of
larvae of parasites that are normally present in the dung. During composting
frequent mixing of waste is required. The manure from other livestock
farms like sheep, goat, pig and poultry can be decomposed in the similar
manner. After piling within 24 hours temperature rises to 50°C and within
3-8 days it reaches to 70°C. Thereafter it falls to 50°C. C: N ratio and
moisture are important in this process.
Biogas Production (Anaerobic fermentation): In this process organic
matter is converted into volatile fatty acids which is in turn by the action of
anaerobic bacteria (methanigenic bacteria) is converted to CH4 and CO2.
The slurry is valuable product for using in fields.
Aerobic Oxidation: Slurry can be disposed by keeping it in shallow ditches,
lagoon, and lakes. BOD (Biological oxygen demand) per acre is generally
20 for proper oxidation. Large areas are required and periodically solid
sludge has to be removed. Upper water is used for irrigation after mixing
with fresh water or directly also.
Liquid Form by Means of Lagoon: Lagoon is a body of water like a
small pond where in liquid manure is discharged and digested by bacterial
action. In this method fertility value of manure is wasted but helps in saving
of equipment and labor which may compensate the loss. Pens are scraped
and washed daily with water under pressure 75 Ibs./sq” inch and 500 gallons
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water per hour. This is run into lagoon which should hold at least one week
accumulation of manure @ 20 kg/cow/day.
15. VACCINE AND VACCINATION PRACTICES
1. Vaccine purchase- Consultation with veterinarian before
purchasing vaccine is helpful in determining the vaccine required
in dairy farm. Check expiration dates, cold chain of the vaccine at
the time of purchase or receiving the vaccine. Purchase vaccine
in small-dose vials to minimize wastage.
2. Storage of vaccination- Read and follow label instructions. Discard
any vaccine that freezes or expired. Store vaccine that will expire
first near the front of the refrigerator and use it first. Do not
overstock vaccine and most important is train employees, family
members and others on proper vaccine handling.
3. Handling of vaccine at field level- Pre-cool the cooler for at
least 1 hour prior to placing the vaccine inside. Use enough ice or
cold packs to maintain a steady temperature, 35-45°F. Take enough
vaccine for the morning or for afternoon, not for both. Keep the
cooler out of sunlight. Identify any leftover unopened bottles of
vaccine and use them first the next time. Do not use the same
vaccine gun for different vaccines. Do not mix modified live
vaccines if won’t be able to use them within 1-2 hours reconstituting
them. Discard bottle of killed vaccines that have been opened for
more than 2 days because vaccine can be contaminated by repeated
introduction of air and needles.
4. Injection of vaccine- Give injections in front of the shoulder in the
middle neck region. Avoid giving injections in the nuchal ligament
of the neck region. Remove air from syringes or guns prior to
injecting vaccine. Use the correct gauge and length of needle as
specified by the label. Change needles every time before filling the
syringe or vaccine gun. Change needles that become blurred, bent,
or broken. Never straighten and reuse a broken needle. Space
multiple injections 4 inches apart on the animal to avoid mixing
different products. Use a new needle each time syringes are filled.
5. Disposal of vaccine- Follow if any disposable instructions provided
on the label. Do not place the unused vaccines on water sources.
Unused or empty vaccine container should be banned either through
burn barrels or incinerators.
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Vaccine schedule- Follow the standard vaccination schedule for dairy

animals as provided by local animal husbandry department at your places.
Table 2: Vaccination schedules for cattle and buffaloes
Sr. No Name of Disease Age at first dose Booster dose Subsequent dose
1 Foot and Mouth 4 months and 1 month after Six monthly
Disease (FMD) above first dose
2 Haemorrhagic 4 months and - biannually in
Septicaemia (HS) above endemic areas.
3 Black Quarter 4 months and - Annually in
(BQ) above endemic areas.
4 Brucellosis 4-8 months of - Once in a lifetime
age(Only in
female calves)
5 Theileriosis 3 months of - Once in a lifetime.
age and above Only required for
crossbred and
exotic cattle.
6 Anthrax 4 months and - Annually in
above endemic areas.
7 IBR 3 months and 1 month after Six monthly
above first dose (vaccine presently
not produced in
India)
8 Rabies (Post bite Immediately 4th day 7, 14, 28 and 90
therapy only) after suspected (optional) days
bite. after first dose.

Deworming schedule for dairy animals- Regular deworming of animals

is required in dairy farm. The various worms like trematodes, cestodes and
nematodes are common in dairy animals under the field conditions. Therefore,
follow the below mentioned schedule:
For Round worms (nematodes): First dose at 10 days of age and thereafter
at monthly interval up to 6 months. Thrice a year in animals above 6 months
of age
For Liver Flukes (trematodes): Twice a year in prevalent area (before
and after monsoon)
For Tape worms (cestodes): Twice a year (January and June in prevalent
herds)
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16. CALF REARING SYSTEM:

Calf rearing section is very important nursery at dairy farm. Calf
rearing system varies with the facilities available at dairy farm. They may
be reared indoors or outdoors or semi-intensive system. In humid tropics, it
may be desirable to keep the calves indoor in day time and outdoor at night.
This will reduce parasitic infection also. Thus, it is advantageous to keep
new born calf in individual pen for the first 3-4 weeks of age. Calves that
are running in batches often suckle or lick each other after feeding and it is
a good practice to keep them in their pens for some time after milk feeding.
Hair swallowed by the calves after suckling each other often forms a hard
ball in the abomasum and this is a constant cause of digestive disturbances
and death. Cleaning the mouth of the calves after each milk feeding is a
sanitary practice. The calf pens should provide comfort and easy cleaning.
Management practice up to six months age of calves:
Clean nostrils and mouth of calf after birth, which helps the calf to
breathe better and help in preventing the future breathing problems. Allow
the mother to lick the calf clean which promotes circulation within the
calf’s body and prepares the calf to stand up and walk. Tie the naval cord
with a thread at a distance of around 2 inches from the base and cut the
remaining cord with a clean instrument. Dip the navel (a simple smearing
will not serve the purpose) in 7% or higher tincture of iodine solution and
repeat after 12 hours. (Do not use teat dip or weaker iodine solutions). A
poorly maintained navel is the gateway to E. coli and other pathogens
particularly causing navel ill or joint ill.
Scientific principle and management of new-born calf:
A new born calf should be given 2 litres of colostrum within the
first 2 hours of birth and 1-2 litres (based on size) within 12 hours of birth.
Many calves do not nurse adequate amounts of colostrum from their dams
within the first few hours of life, and thus they may not receive adequate
immunity. Feeding colostrum after 24 hours of birth may not help the calf to
ward off infections. A calf must receive adequate colostrum to protect it
from diseases for the first three months of its life. Colostrum is the calf’s
“passport to life”. Hand-feeding new-born calves are therefore
recommended so that the farmer is sure about the amount of colostrum an
individual calf receives. Provide fresh, clean water all times, particularly
when milk feeding is induced discontinued. If muconium (first faecal matter)
is not voided out, mild enema by dissolving soap in a litre of warm water
should be given.
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1. Weaning: If weaning at birth is followed, care should be taken to

see that adequate colostrum is fed for the first 3-4 days. If weaning
is practised 4 days after calving, then further ration has to be fed
as per the schedule described.
2. Health management: De-worming should be done within 10-14
days of age subsequently on a monthly basis upto the 6 month.
When the animal is 3 months old, consult the veterinarian for
vaccination.
3. Calf pen- Calf pen should be close to cow shed. Pen should provide
sunlight; good ventilation floor should not be slippery. After 6-8
weeks, calves may be grouped according to age, sex etc. The feed
boxes and watering equipment should be provided in the pen.
4. Identification mark- Giving of identification mark which is
necessary for keeping proper records, proper, feeding, better ore
and management. There are following methods as given below:
1. Branding: brandings are mainly two types as Cold Branding
and Hot Iron Branding. There is uses a metal instrument to
burn or freeze a mark on the animal’s hide.
2. Ear Tagging: Use special pliers to attach pieces with numbers
on them and easy to read from the front view in herd.
3. Tattooing: Uses a special tool to put inked numbers in an
animal’s skin. This is Permanent, Simple and relatively painless.
But hard to read from a distance.
5. Dehorning the calves- Dehorning or disbudding: Disbudding is
carried out either by the use of hot iron, caustic sticks and electrical
dehorning cone. Both the buds are destroyed at the early age (within
3 to 10 days).
6. Castration- Castration of bull calf: At age of 2-3 months, bull calves
should be castrated suitably. Bloodless method of castration are
Burdizzo, Elastrator, Calicrate bander, Short-scrotumed, Chemical
castration.
a. Burdizo method of castration- Restrain the animal, Do one
at a time, Push testes down into scrotum and over to the side.
Place the lips of the instrument over the cord 1/2 the distance
between the testes and abdomen. Push handles together until
the cord is crushed.
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b. Elastrator method of castration: Restrain the animal, Place

the rubber band over the prongs, Spread the rubber band and
push both testes down through it, Release the band above the
testes, Check later for the scrotum to fall off and disinfect.
c. Invasive method of castration : Restrain the animal, Examine
the calf to see if testes have descended in to the scrotum,
Disinfect equipment, hands, and scrotum, Grab the end of the
scrotum with one hand and pull down. Cut off the lower 1/3 of
the scrotum, Pull testicles down one at a time / scrape if
necessary. Trim excess fat and membrane carefully, Disinfect
the area again, Incision method is performed much the same
way, but make an incision on each side of the scrotum first,
then pull down each testicle through the incision.
7. Record keeping: Add record keeping of newborn care, when calf
was moved from calving area, navel dipped, fed colostrum, which
provided care.
17. GREEN FODDER PRODUCTION
Production of fodder plays a major role in feed of milch animals,
thereby providing required nutrients for milk production and health of the
dairy animals. Green fodder production provides the better option of feed
buying alternative for farmers who are planning to go for dairy farming. It
provides best way of nutrients for animals and has beneficial effects on
their growth and health. It also reduces the cost of animal feeding. The
green fodder can be utilized for making the silage. Most of the fodder
varieties are perennial, thus can get more fodder cultivation for each year.
Cultivation and maintenance cost is low compared to other feed ingredients.
According to various agro-climatic zones there are so many cropping system
in our country. Therefore, we need area specific fodder crop rotation.
18. ENTREPRENEURSHIP
Entrepreneurship is major part of any business because farmers
can produce but cannot sale their produce properly. Therefore, the focus
on marketing the produce is very important Dairy farmers must have
knowledge about the dairy project reports, availability of bank loan, insurance
facilities of animals and marketing management etc. Above all he/she should
have idea about the retail marketing of milk and its products after value
addition.
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Cattle Insurance
It can be applicable to indigenous, cross breed and exotic cattle
owned by/ belonging to private owners or financed by the various financial
institutions i.e. bank-, military dairy farms, Co-operative/Corporate dairies
etc. Cattle means and Include - Milch cows and Buffaloes, Calves/Heifers,
Stud Bulls, Bullocks/He buffaloes and Mithuns.
Age Group
a) Milch cows 2 years or age at first calving to 10 years
b) Milch Buffaloes 3 years or age at first calving to 12 years
c) Stud bulls 3 years or earlier age at sexual maturity to 8 years
d) Bullocks/He buffaloes 3 years to 12 years
e) Calves/Heifers 4 months upto date of 1st calving
(No relaxation in upper age-limits is allowed)
Valuation- Valuation based on market value as on date and place and to be
decided on the basis of recommendations of the local veterinary surgeon.
Scope of Cover-The policy shall give indemnity only for death of cattle
due to:
1) Accident (inclusive of fir lighting, flood/inundation, cyclones, tornado,
tempest, storm, hurricane, famine) or any other fortuitous
circumstances (Fortuitous means accidental in origin).
2) Diseases (Inclusive of Rinderpest, Black Quarter Haemorrhegic
Septicemia, Foot and mouth disease subject to vaccination against
these diseases).
3) Surgical operations.
4) Strike, Riot and Civil Commotion risk & Terrorism
5) Earthquake
Exclusion
1. Theft or clandestine sale, missing of insured animal.
2. Malicious or willful injury or neglect/ intentional slaughter.
3. Transport by air or sea or beyond 80 km by rail or road.
4. Partial disablement of any type, whether permanent or temporary.
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5. Accident happened/Diseases contracted prior to commencement

of risk.
6. War & allied perils.
Points to be noted: 15 days waiting period- The company is not liable
to pay the claim in the event of death of insured animal due to diseases
occurring within 15 days from the commencement or risk. No tag no Claim-
In the event of death of animals covered under the policy, claims shall not
be entertained unless the ear tags are surrendered to the company. In the
event of loss of ear tags, it is the responsibility of the insured to give immediate
notice to the company and get the animal retagged. Service tax- Exempted
for IRDP Scheme policies but time to time may change.
19. MARKETING
Marketing: Marketing of dairy products is not a problem in India. There
is huge demand of these products throughout the year in India. One can
easily find the suitable market for selling these products in almost every
places of the country. The activities involved in transporting products from
producers to consumers includes product exchange , physical and auxiliary
activities. These activities can be further divided into buying and selling as
exchange activities; storage, transport, processing and standardizing as
physical activities; and financing, risk-bearing and market intelligence as
auxiliary activities.
Marketing chain: The flow of commodities from producers to consumers
that brings in economic agents, who perform complementary functions with
the aim of satisfying both producers and consumers.
Marketing node: Any point in the marketing chain where an exchange
and/or transformation of a dairy product takes place. A marketing chain
may link both formal and informal market agents.
Marketing agents: Individuals, groups of individuals or organizations
that facilitate the flow of dairy products from producers to consumers
through various activities, such as production, purchasing, processing and
selling. Examples of market agents include farmers selling dairy products,
retailers, wholesalers, dairy cooperatives, importers and exporters.
Milk producers: Rural subsistence farmers, rural market-oriented farmers,
commercial dairy farmers and urban and periurban milk producers.
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Emerging Dairy markets

Food service institutional market – It is growing at double the rate of
consumer market.
Defence market – An important growing market for quality products at
reasonable prices.
Ingredients market – A boom is forecast in the market of dairy products
used as raw material in pharmaceutical and allied industries
Parlour market – The increasing away-from-home consumption trend
opens new vistas for ready-to-serve dairy products which would ride take
credit on the fast food revolution sweeping the urban India
Challenges for marketing of milk
 Majority of the market is still unorganized
 Acceptability of the consumer base
 Less penetration to the rural market
 Lack of transparent milk pricing system
Solution to overcome the challenges for dairy marketing
1. Dairy cooperatives: One of the most successful producer
organizations is the Indian dairy cooperative, which was started in
2005 and has had a network of more than 100,000 village level
dairy cooperatives with 12.3 million members. National Dairy
Development Board (NDDB) covers 1,40,227 village level societies
and 14 million farm families of which 4 million are women. It has a
daily procurement of 22 million litres of milk. With the contribution
of Amul Pattern of dairy cooperatives, India has progressed from
a milk-deficit country to the largest milk-producing country, globally.
In this model, millions of days of employment have been generated
for the rural poor and this further improved their socio-economic
conditions.
2. Contract farming: Contract farming has a potential to help the
small and marginal farmers overcome constraints in accessing
inputs, credit, extension and marketing. The problem of the higher
cost of contracting with small producers is overcome by contracting
with a single person in the village often an agent who acts as an
intermediary between the processor and producers. The country’s
dairy sector is dominated by small holders, and contracting with a
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large number of them involves transaction costs for the processors.

The processors do not have much choice but to take milk from
smallholder producers.
3. Self Help groups and group approach: The women’s self help
group (SHG) movement particularly SHG-bank linkage programme
has spread all over the country. These programme’s interventions
and processes have resulted in a sustained process of women
member’s empowerment. The real power of the SHG-bank linkage
model (SBL model) lies in the economies of scale created by Self
Help Group (SHG) Federations (comprising 150"200 SHGs each).
This is evident, for example, in bulk purchase of inputs (seeds,
fertilisers etc.) and marketing of outputs (crops, vegetables, milk,
NTFPs etc). Government of India has now started National Rural
Livelihoods Mission (NRLM) in 2011. There is a clear understanding
that the SBL programme can only be successful if it is tied up with
livelihood programmes such as improved agriculture, dairying,
marketing etc.
4. Retail Milk Market: The retail milk market in India is mostly
unorganized. There is no supply chain management perspective.
An overwhelming proportion of the Rs 4,00,000 crore retail market
is unorganized. In fact, only a Rs. 20,000 crore segment of the
market is organized. Retailers: Milk shops, peri-urban farmers,
rural subsistence and market-oriented farmers and retail shops.
Unorganized milk retail chain: Milk producers directly supply
milk to the consumer or through a marketing channel. Milk producers
supply milk to the consumers through the intermediaries like middle
men. Organized milk retail chain: Milk producers supply their
milk to primary cooperative society, which further supplies to
secondary cooperative. The milk after processing, reaches
consumers via marketing channel either directly or through apex
cooperative. Industry based milk retailing opportunities are also
available in our country and growing at faster rate.
Conclusion: Hence farmer choose organized milk retail or
industry based retailing chain for improving their status as well as Indian
economy
19. VALUE ADDED MILK PRODUCT:
Value added dairy products: Dairy farmers can add value to their milk
by processing and marketing their own products, such as cheeses, yogurt,
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butter, ice cream, and flavoured milk. Many consumers are willing to pay a
premium for locally produced, high-quality and farmstead dairy products.
India’s demand for milk and its value added products is increasing twice as
fast as the production of milk. The market is also witnessing a consumer
shift towards healthier products such as UHT milk, probiotic drinks,
processed cheese, curd, butter, milk and ghee etc.
Classification of Indian traditional dairy products:
1. Heat and acid coagulated milk products: Paneer is an unaged, acid-
set, non-melting farmer cheese made by curdling heated milk with lemon
juice or other non-rennet food acid, and then removing the whey by pressing
result into a dry unit. Chhena is like paneer, except some whey is left and
the mixture is beaten thoroughly until it becomes soft, of smooth consistency
and soft but firm Sandesh is a confection made from chhena mixed with
sugar then grilled lightly to caramelize, but removed from heat and molded
into a ball or some other shape. Rasagolla is confec_tion made from mixture
of chhena and semolina rolled into a ball and boiled in sugar syrup.
2. Fat rich dairy product: Ghee - Ghee is prepared by simmering butter,
which is churned from cream (traditionally made by churning yogurt),
skimming any impurities from the surface, and then pouring and retaining
the clear, still liquid fat, while discarding the solid residue that settled on the
bottom. Malai - It is made by heating non-homogenized whole milk to
about 80°C (180°F) for about one hour and then allowing to cool. A thick
yellowish layer of fat and coagulated proteins forms on the surface, which
is skimmed off. The process is usually repeated to remove most of the fat.
3. Cultured dairy products: Yogurt and Dahi are dairy foods that are
used and consumed widely. A notable difference between these two is that
yogurt is prepared by pasteurizing milk, whereas Dahi is prepared by boiling
milk, then cooling it to room temperature, and finally adding the previous
day’s mild acidic curd to it. Mishti doi is dahi (Indian Yogurt) mixed with
sugar. Shirkhand is strained yogurt mixed with sugar, and often flavourings
such as cardamom, saffron, or fruit.
4. Heat desiccated products: Kulfi is made from slowly freezing
sweetened condensed milk. In comparison to ice Cream, kulfi is not whipped
or otherwise aerated. Khoa or Mawa is made by reducing milk in an open
pan over heat. Rabri is a sweet, condensed-milk-based dish made by boiling
the milk on low heat for a long time until it becomes dense and changes its
color to pinkish. Sugar, spices and nuts are added to it for giving it flavor. It
is chilled and served as dessert. Basundi is a sweetened condensed milk
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made by boiling milk on low heat until the milk is reduced by half.
FIRST AID FACILITIES AT MODEL DAIRY FARM:
First aid: First aid includes any emergency care given to an injured or ill
patient before medical assistance arrives. Due to the often hazardous nature
of farming and isolation, all the people working on the farm should be trained
in basic first aid.
Basic supplies: Basic supplies to this first hand kit include: adhesive medical
tape, antibiotic ointment, antiseptic solution, gauze in assorted sizes, bandages
including elastic wraps, cotton balls, instant cold packs, duct tape, plastic
bags for disposal of contaminated items, sterile eye wash, thermometer,
scissors (for cutting bandages or clothing), tweezers, soap or instant hand
sanitizer, latex gloves and a first-aid manual.
Emergency contacts: A card inside an emergency kit should include
numbers for an ambulance, hospital or fire department and have written
directions on how to get back to the farmstead, field or work area. Numbers
for poison control and emergency road service should also be included.
Additional safety measures: Check the farm safety kits every three
months to make sure supplies are not expired and that they fit the current
season. Safety kits are important tools to have on the farm, but additional
training could also be beneficial in responding to emergencies. Consider
getting training in first aid or other important topics to assist when first
responders can’t be on the scene immediately.
Individual needs: Make sure the kit includes personal medications and
medical information for those who require special attention. Drugs to treat
allergic reactions and any other personal medications that don’t require
refrigeration should be included. The name and a phone number of the
family doctor should also be included.
20. TOP TEN DAIRY COMPANIES IN INDIA
1) Amul Industries Pvt Ltd: Amul Industries Pvt Ltd was founded
in the year 1946 and its headquarter is located in Anand, Gujarat,
India. It is one of the top dairy companies in India. It is offering a
product range includes paneer, butter, cheese, ghee, ice-cream,
chocolate, milk powders etc. The leading dairy company is managed
by the co-operative body, the Gujarat Co-operative Milk Marketing
Federation Ltd. It is one of the leading food brands in India. Amul
apart from being Asia‘s largest milk brand is a vehicle for economic
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and social development through which farmers manage their own

resources. Amul is also developing wide range of products to meet
future demand, including calcium fortified milk, flavored yoghurt,
frozen yoghurt, sugar free ice-cream and pro-biotic products.
2) Andhra Pradesh Dairy Development Cooperative Federation
Limited: Andhra Pradesh Dairy Development Cooperative
Federation Ltd is one of the leading dairy companies in India. It is
offering a wide range of products prepared from milk. Its product
range includes curd, butter milk, ghee, paneer, doodh peda, and
butter. The leading dairy company is also growing product range to
meet the changing customer needs. It has the huge share in the
daily use of dairy products.
3) Karnataka Co-operative Milk Federation: Karnataka Co-
operative Milk Federation is one of the top dairy companies in
India. It is offering a range of products like paneer, curds, pedha
and milk. The entire system works through the chain of farmers.
The company has reached into even rural areas of Karnataka. It is
known for its quality products that it distributes into even remote
areas.
4) Kwality Ltd: The company was started in the year 1992 as Kwality
Dairy. It is one of top private sector dairy companies in India. It is
offering a range of innovative products and currently enjoy the
huge presence in Northern India. It has the manufacturing unit in
leading Indian states. It is committed to fulfilling all quality standards.
It is one of the top companies in the Institutional segment.
5) Mehsana District Co-operative Milk Producers Union Ltd
(Dudhsagar Dairy): The company was founded in the year 1963
with headquarter in located in Gujrat. It is one of the top dairies in
Asia. It is the member of state level Gujarat Co-operative Milk
Marketing Federation.
6) Mother Dairy Fruit and Vegetable Pvt Ltd: Mother Dairy Fruit
& Vegetable Pvt Ltd was founded in the year 1974 with its
headquarter in Noida, Uttar Pradesh. It is offering the wide range
of products including ice-cream, ghee, paneer, pickles and many
other products under the one umbrella brand Mother Dairy Fruit &
Vegetable Pvt Ltd. In starting phase, the company was mainly
focused on Delhi and NCR. Later on, it has spread its business into
other cities.
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7) Schreiber Dynamix Dairies Pvt Ltd: Schreiber Dynamix Dairies

Pvt Ltd was started in the year 1945. It is headquartered in Green
Bay. It is producing cream cheese, yogurt, process cheese.
8) Tamilnadu Co-operative Milk Producers Federation Ltd: It
is one of the top dairy companies in India, currently located in
Tamil Nadu.
9) The Kerala Cooperative Milk Marketing Federation Ltd
(Milma): The company was founded in the year 1980 and
headquartered in Thiruvananthapuram. The company product range
includes milk products and cattle feeds.
10) The Orissa State Cooperative Milk Producers Federation
Ltd:The Orissa State Cooperative Milk Producers Federation Ltd
was founded in the year 1985. Company’s product range includes
milk & milk products, horticulture products, kandhamal organic
products, cattle feed. Its headquarter is located in Bhubaneswar,
Orissa.
Table 3: Largest milk producers in India:
S. No. Dairy Industry Production (‘000
liters per day)
1 AMUL 2500
2 OMFED, Odisha 1950
3 AP Dairy Development Cooperative Federation Ltd 1500
4 Haryana Dairy Development Cooperative Federation Ltd 1450
5 Dynamix Dairy Industries Ltd., Maharastra 1000
6 Mother Dairy, Delhi 1000
7 Vasundhara Dairy, Nagpur 1000
8 Dudhsagar Dairy, Gujarat 950
9 Hatsun Agro, Chennai 800

Farmer / Entrepreneur
Some other private dairy industries are:
 Kwality Dairy Ltd.
 Amrut Industries Ltd.
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 Anmol Dairy Ltd

 Britannia Industries Ltd
 G R B Dairy Foods Pvt Ltd
 Haryana Milk Foods Ltd
 Indian Dairy Specialities Ltd
 Industrial Progressive (India) Ltd
 Mahaan Foods Ltd
 Milkfood Ltd
 Nikumbh Dairy Products Ltd
 Ashmi Milk
REFERENCES
Anonymous. 2012. 19th Livestock Census 2012. Department of Animal Husbandry, Dairying
and Fisheries, Ministry of Agriculture and Farmers Welfare, Govt. of India.
Knowledge Report (2015) Dairy Farming in India – a Global Comparison’ by YES BANK
and IFCN.
Jagdish Prasad, Animal Husbandry & Dairying , Kalyani publication, New Delhi
Facilitator guide, ASCI, Govt. of India , New Delhi
https://www.icar.org/index.php/technical-bodies/working-groups/dairy-cattle-milk-
recording-working-group/
https://icar.org.in/content/milk-production-management-dairy-development
www.nddb.coop
www.saasonline.org
Handbook of Good Dairy Husbandry Practices, National Dairy Development Board,
Anand, Gujrat
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Chapter
19
BEE KEEPING AND ITS PROMOTION
FOR ENTREPRENEURSHIP
D.V. Singh, Rajendra Singh, Anuj Bhatnagar, Umesh Kumar and
D. Vamsi Chandrasekhar Reddy

1. INTRODUCTION
The human being knows usefulness of beekeeping since time
immemorial by the introduction and establishment of Italian honey bees
(Apis mellifera. L.) during 1960’s. It has gained momentum for commercial
beekeeping in north western states of the country. Honey bees are main
flower visitor of crops and useful in cross pollinated crops. They collect
nectar from flowers for the production of honey. They also collect pollen
from the flowers for protein, where as some nectar serves as carbohydrate
source to honey bees and their brood. Apart from collecting pollen and
nectar bees also render crops pollination services. Thus play a vital role in
enhancing the productivity of vegetables, fruit, plantation and field crops to
the extent of 20-25 percent. According to FAO, 2010, Honeybees are mainly
known for the production of honey, which is unparalleled natural product
both medically and nutritionally.
Though, its composition is well known, it has not been synthesized
in any part of the world. Honey composed of vital minerals like potassium,
iron, copper, manganese, phosphorus, protein, vitamins enzyme and natural
sugars were absorbed and assimilated directly into blood streams. Honey
has got count less medicinal use in Indian homes. It is a good laxative, a
blood purifier and an antiseptic and has been extensively used in ‘Ayurvedic’
and Unani system of medicines for the cure of various ailments. It is used
as a preventive measure against cold, cough, fever and curative for sore
eyes, ulcers, sore throat and burns. The wax is extensively used in candles,
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cosmetic and pharmaceutical is also a bee product. Apart from these,

beekeeping is also important for the production of royal jelly, venom, propolis
and pollen.
In India beekeeping has been mainly forest based. Several natural
plant species provide nectar and pollen to honey bees. Thus, the raw material
for production of honey is available free from nature. Bee hives neither
demand additional land space nor do they compete with agriculture or animal
husbandry for any input. The beekeeper needs only to spare a few hours in
a week to look after his bee colonies. Beekeeping is therefore ideally suited
to him as a part-time occupation. Beekeeping constitutes a resource of
sustainable income generation to the rural and tribal farmers. It provides
them valuable nutrition in the form of honey, protein rich pollen and brood.
Bee products also constitute important ingredients of folk and traditional
medicine. The establishment of Khadi and Village Industries Commission
to revitalize the traditional village industries hastened the development of
beekeeping. During the 1980s, an estimated one million bee hives had been
functioning under various schemes of the Khadi and Village Industries
Commission. Production of apiary honey in the country reached 10,000
tons, valued at about 300 million rupees.
The major regions of honey production are the forests and farms
along the sub-Himalayan tracts and adjacent foothills, tropical forest and
cultivated vegetation in Rajasthan, Uttar Pradesh, Madhya Pradesh,
Maharashtra and Eastern Ghats in Orissa and Andhra Pradesh.
Macro benefits of Beekeeping include:
 Excellent source of employment for the rural unemployed: currently
an approximate of 250,000 farmers in India are employed through
beekeeping.
 Provides an excellent source of income for the landless farmers:
since beekeeping in migratory in nature, even the landless farmers
can take up this profession.
 No farm land is wasted as apiaries are kept on the boundaries and
non-cultivable land.
2. BEE KEEPING IN AGRICULTURE AND RURAL DEVELOPMENT
Production of honey has been the major aim of the industry. Modern
beekeeping also includes production of beeswax, bee collected pollen, bee
venom, royal jelly, propolis, as also of package bees, queen bees and nucleus
colonies. All these are possible only with a proper management of bees,
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utilizing the local plant resources and adapting to the local climatic conditions.
Modern beekeeping makes heavy use of beekeeping equipment and honey
processing plant. This results in high efficiency and also ensures the quality
of the processed honey. Seasonal management of bee colonies varies in
different parts of the country although the basic management methods are
the same. Flow management, dearth management, provision of feeding,
control and cure of bee disorders, bee diseases, pests and enemies, are
some of the routine measures to keep bee colonies healthy and strong.
There are special management techniques like queen rearing, migration for
honey production or for colony multiplication, which the beekeeper takes
up after he gains sufficient knowledge and experience in handling bee
colonies.
Benefits brought about by beekeeping
 Beekeeping is of vital importance in rebuilding and kick starting
rural economic activity, especially that of women and youth. An
enhanced economic activity would address socio-economic
problems such as HIV/Aids, unemployment and poverty.
 In beekeeping, a diverse range of by-products is produced apart
from the main product-honey. These are beeswax, propolis, royal
jelly and bee venom. These products are not only rich in
carbohydrates, proteins and vitamins, but also have medicinal
(healing) properties.
 In arable farming, bees are also known to improve crop yields
through increased efficiency in pollination.
 Beekeeping diversifies agriculture as it can be integrated with other
agricultural activities like arable and pastoral farming, as well as
agro forestry. Furthermore, bees do not compete for resources
with other agricultural enterprises. Bees obtain their food from the
wild, cultivated and wasteland areas.
3. BEEKEEPING AS A SOURCE OF INCOME GENERATION
Specializing in Selling Local Honey, Beeswax, Lip Balm, Candles,
Pollen, Pollination Service, Swarm Catching, etc. For many of us making
some extra money on a regular basis can make a big difference in our
everyday lives. Aside from simply enjoying the benefits of having your own
honey supply, there are a number of ways to make money by keeping
honey bees.
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Creation of employment
Selling your excess honey from your home or at small local stores.
You can get a higher price then what it is sold for in your nearby supermarket
because it is locally produced honey. Many people believe that eating local
honey is very helpful to reducing the negative effects of allergies as it has
minute particles of pollen in it from flowers in the area.
Excess beeswax can be used to make candles. Package them
attractively wrapped by the pair with an attractive ribbon. These can be
sold to friends and neighbors or through a local store. Recipes are available
on the internet for making your own lip balm using beeswax and a couple of
other easily obtainable ingredients. You can melt beeswax and make small
bars of pure beeswax. Some people just like the feel and smell of the
beeswax but it also can be used as a lubricant for the bottom rails of bureau
drawers. You can buy small molds and use these to make any number of
beeswax knickknacks. One can make a number of beeswax animals, etc.,
to sell.
Some folks collect pollen from the bees to sell in jars as a health
food. The equipment to do this is available at any number of beekeeping
equipment supply companies. Another big opportunity, if you are so inclined
is to make yourself available to deal with swarms of bees. Collect a healthy
swarm and bring it home to start a new beehive relatively free of cost.
Packages of honey bees used to start new bee hives are sold by beekeeping
supply companies for about $65 per a three pound box. Removing bees
from inside house walls or ceilings affords a great opportunity to add one’s
income as a beekeeper. There is also the opportunity presented by raising,
packaging and selling Queen Bees.
Advantages of beekeeping as an income generation activity
 Bee keeping requires less time, money and infrastructure
investments
 Honey and beeswax can be produced from an area of little
agricultural value
 The Honey bee does not compete for resources with any other
agricultural enterprise.
 Beekeeping has positive ecological consequences. Bees play an
important role in the pollination of many flowering plants, thus
increasing the yield of certain crops such as sunflower and various
fruits.
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 Honey is a delicious and highly nutritious food. By the traditional

method of honey hunting many wild colonies of bees are destroyed.
This can be prevented by raising bees in boxes and producing honey
at home.
 Beekeeping can be initiated by individuals or groups
 The market potential for honey and wax is high
4. PRODUCTION PROCESS
Honey bees can be raised in boxes at the farm or home.
Equipment requirements for bee keeping
Bee Hive: Various types of bee hives are available for beekeeping. They
are wooden boxes having two parts. Upper ¼ comb chamber and lower ¾
brood chamber. The fallowing two types of bee hives are more popular in
India
 Ghos box = 36 cm X 21.5 cm
 Newton box = 20.2 cm X 14.0 cm
Some other familiar boxes are as fallows
 Langstroth box (American hive)= 42.2 cm X 31.1 cm
 Pant, Kanje and jeoli kote No.1= 42.2 cm X 12.3 cm
 Dadant box (Russian hive)= 47 cm X 15.2 cm
 Thompson box= 30.5 cm X 15.2 cm
 Hive: It is a simple long box covered with a number of slats on
top. The rough measurements of the box should be around 100 cm
of length, 45 cm of width and 25 cm in height. The box should be 2
cm thick and the hive must be glued and screwed together with
entrance holes of one cm wide. The slats (top bars) must be as
long as the hive is wide in order to fit across and the thickness of
about 1.5 cm is sufficient to support a heavy honey comb. The
width of 3.3 cm needs to be given to give the bees the natural
spacing they need to easily build one comb to each separate top
bar.
 Smoker: It is the second important piece of equipment. This can
be made from a small tin. We use the smoker to protect ourselves
from bee stings and to control the bees.
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 Cloth: To protect our eyes and nose from stings at the time of
work near the apiary.
 Knife: It is used to loosen the top bars and to cut of the honey
bars.
 Feather: To sweep the bees from the comb.
 Queen Excluder
 Match box
5. MAJOR CONSTRAINTS IN BEEKEEPING IN INDIA
Beekeeping with Apis cerena Indica and Apis mellifera: The KVIC
since 1952 promotes A. cerena indica, the Asian honey bee. The colony
number of this bee in India is about 0.96 million which yielding 6300 metric
tonnes of honey with an average yield of 6.7 kg per hive.
Using the Correct Species for Beekeeping: The Italian honeybee is
acclaim choice for commercial beekeeping, throughout world. However
the controversy regarding the suitability of the species i.e. Asian honeybee,
Apis cerena indica and the European bee, A. mellifera for beekeeping in
India which has been going on for the last three decades gave a severe
setback.
Availability of Genetically Superior Queens for Increased Honey
Production: It is essential to have requisite infrastructure for the production
of large volumes of genetically superior queens for supply to the beekeepers.
Lack of technical knowledge for efficient management of colonies
for high honey yields: This is a major constraint. Beekeepers are not
aware of international methods of efficient management.
Some of the wrong practices followed by beekeepers are: Few
beekeepers use queen excluders. Further the excluders that are locally
available get rusted and damage the bees. Efficient swarm control is not
practiced by beekeepers and they are most unaware of these techniques.
Most beekeepers just divide colonies to prevent swarming. Maximum yields
from A. mellifera are obtained when the colonies go up to 3 to 4 chambers
with populations of 50 000 to 70 000 bees. Beekeepers do not know the
concept of the food chamber as a measure of colony build up and mostly
maintain colonies on a single chamber leading to weak colonies that die in
dearth periods. Few beekeepers change queens every season before the
honey flow leading to loss of queens during the crucial honey flow. Some
beekeepers even do not use full comb foundation sheets and only use strips
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of wax sheets for the frames which lead to excessive drone comb
construction besides wasting the time and effort of bees in making extra
comb. Therefore there is a great scope for improvement.
Lack of Infrastructure at the grass roots and National level for
Beekeeping:
There is no concept of beekeeping inspectors or trainers in
beekeeping, at the village or even district level. Beekeeping by its nature
has seasonal crises of disease management and so on. There should be a
hierarchy of beekeeping experts and trainers in the village blocks, Tehsils,
Districts and then finally in the universities to be able to have effective feed
back to and from the beekeepers.
Marketing Constraints
You are most likely to get market constraints, whether you become
an independent beekeeper or a trader after completing this course. Let us
discuss these constraints in detail.
 Lack of access to suitable containers for storing, transporting and
marketing honey.
 Poor diversity of retail packaging materials.
 Lack of roads.
 Lack of transport.
 Lack of communication possibilities.
 Lack of bargaining power.
 Lack of organizational support.
 Lack of training and technical advice or poor quality training.
 Poor market access.
 Lack of appropriately-trained support personnel or information
materials.
 Low product prices.
 Few social linkages with other producers.
 Few social linkages with potential buyers
6. QUALITY CONTROL IN PRODUCTION OF HONEY
This is a very important aspect of beekeeping and needs to be
stressed on. Some beekeepers extract honey from brood frames by which
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damages the brood and the honey extracted is of poor quality. All beekeepers
do not maintain separate super chambers for the production of honey. Many
beekeepers do not use queen excluders. The queen lays eggs in the honey
chamber thereby lower the honey quality. Honey only develops the flavor
which is particular to each flower source if it is allowed to stay in the hive
a little more after the bees seal the frames. Beekeepers do not use the
technique of keeping supers in warm rooms with a forced airflow before
extraction.
In case, unripe honey is extracted, it is high in moisture content and
lacking in colour, flavor and quality. Honey is also poorly stored by
beekeepers. The honey in contact with the old tin plate becomes blackish in
colour and loses flavor. Food grade plastic containers need to be developed
for storing honey.
7. HONEY BEE SPECIES OF ECONOMIC IMPORTANCE
Honey bees belong to Phylum- Arthropod, Class- Hexapoda /
Insecta, Order- Hymenoptera and Family- Apidae. There are five species
of honey bees which are of great economic importance.
(i) Apis dorsata (Giant / Rock honey bee)
(ii) A. florea (Little/ Dwarf honey bee)
(iii) A. cerana (Indian/Asian / Eastern honey bee)
(iv) A. mellifera (Italian/ European honey bee)
(v) Trigona iridipennis (Stingless bee/ Dammer bee)
The first three species are indigenous, while the fourth species A.
mellifera was introduced in India in 1962 from European country. A. dorsata
and A. florea are wild bees as they construct nest in open and cannot be
domesticated in wooden hives. Trigona sp. is wild but is rear in peculiar
bee hive. Whereas A. cerana and A. mellifera are hive/ domesticated
bees as they can be hived inside the wooden hives.
Castes of bees
Worker bees
 The workers are sterile females which developed from fertilized
eggs.
 Workers are smaller than the drones and have yellowish and dark
brown abdominal stripes.
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 The workers are the main group in a colony, with 60,000 –70,000 in
an Apis mellifera colony and 25,000 –30,000 in an Apis cerana
colony.
 They have specialized structures, such as hypopharyngeal glands,
scent glands, wax glands, and pollen baskets, which allow them to
perform all the labors of the hive.
 All the work in a honeybee colony is performed by the worker
bees, including honey and pollen collection, brood rearing, building
combs, feeding the drones and queen, cleaning the hive, and
defending the colony.
 The specific activities are defined by the age of the bee, with tasks
inside the hive for the first 3 weeks after emergence (comb building,
brood care, hive cleaning, thermoregulation, queen care, honey
ripening) and then outside (foragers and scouts).
Under special circumstances, workers can perform any kind of
task irrespective of age as per the need of the colony.
 When the colony is active in spring and summer, worker bee may
live as long as 5- 6 weeks. During inactive period in winter a worker
bee lives five months or more.
Queen bee
 Each colony has a single queen bee irrespective of the colony size.
 The queen bee is larger than the worker and drone bees, has a
black and shiny cylindrical and longer body, and a round and
comparatively small head.
 She is the only perfectly developed female and is the mother of the
colony.
 Her primary function is reproduction. She produces both fertilized
and unfertilized eggs. During peak production, queens may lay up
to 2000-2500 eggs per day. One queen may produce up to 250,000
eggs per year and possibly more than a 10, 00000 in her lifetime.
 The second major function of a queen is secreting pheromone known
as queen substance, required for the stability of the colony including
ovaries inhibition of Worker bees.
 The average productive life span of queen is 2 to 3 years.
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Drone
 Drones (male bees) are the largest bees in the colony and are
blackish and hairy.
 A colony will usually have a few hundred drones.
 They develop from unfertilized eggs and complete their life cycle
in 24 days.
 They lead a life of leisure, doing no work while being fed by the
workers.
 Their sole purpose is to mate with a new queen and also useful to
reduce the temperature of the colony by wing beating. They die
after mating, or are expelled from the hive as winter approaches.
8. HONEY BEE PRODUCTS
Certainly you might have tasted delicious honey many times. But,
do you know there are other bee products also which has many health
benefits. Let us know about them:
(i) Honey: Honey is the natural sweet substance produced by honey bees
from the nectar of blossoms, which honey bees collect, transform and
combine with specific substances of their own, store and leave in the honey
comb to ripen and mature. Bees normally take about 3-4 weeks for storing,
ripening and sealing of honey in comb cells. The colour of honey varies
from nearly colour less to dark brown. It also indicates quality, because
honey becomes darker during storage or if it is heated. Honey contains a
good amount of digestible sugar, minerals, vitamins, enzymes, water, etc.
The aroma, taste and colour of honey are determined by the plants from
which the bees have gathered nectar. For example, nectar collected from
sunflowers give a golden yellow honey. Honey absorbs moisture very quickly
and should be kept in air tight containers.
(ii) Pollen: When bees visit flowers, pollen sticks to the fine feather-like
hair which covers the body. Bees remove the pollen from the hairs using
the pollen comb; a structure on the hind legs. Then she forms the pollen into
small pellets with the pollen press, and sticks it into the pollen basket to
carry it back to the hive. Pollen is stored in cells immediately surrounding
the brood nest where it is readily available for feeding brood and for
consumption by the nurse bees.
(iii) Beeswax: It is a complex mixture of organic compounds secreted by
four pairs of special glands on the worker bee’s abdomen. It is used for
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building wax comb. Beeswax can be secreted only at relatively high

temperatures and after a large intake of honey or nectar. It is produced by
12 to 18 days old honey bees. A bee converts 15 kg of honey into 1 kg of
wax. It is used in medicine, confectionery items, cosmetics and polish.
(iv) Royal Jelly: Royal jelly is the food produced by the young worker
bees through glandular secretion. It is given to freshly hatched larvae. Royal
jelly has many different components including proteins, sugars, fats minerals
and vitamins. It contains many insect growth hormones and is valued as a
medicine or tonic in various parts of the world. It reduces the aging process
in human beings. The beekeepers remove the larvae and harvest the royal
jelly for marketing. Royal jelly deteriorates quickly after harvest and must
be kept frozen or freeze-dried during handling, storage, transport and
marketing.
(v) Propolis: It is a gummy reddish brown substance gathered by the bees
from resinous substance found on trees and buds of plants. It is also called
‘bee glue’ and is used to close small crevices in the hive. It is very sticky in
warm weather and brittle in cold weather. Bees use propolis as building
materials to decrease the size of nest entrances and to make the surface
smooth for passing bee traffic and to varnish inside brood cells before a
queen lays eggs in them, providing a strong, water proof and hygienic unit
for developing larvae. It is used as an antibiotic and helps in curing the
crack feet in human beings. It is used as an ingredient in toothpaste, soaps
and ointments.
(vi) Bee Venom: It is present in the sting of honeybee and having medicinal
value. Bee venom is clear, odourless, watery liquid having somewhat sharp
and bitter taste and hydrolytic blend of proteins with basic pH. It is produced
by venom glands associated with the sting apparatus of worker bees and
used as a defensive agent against enemies specially predators. The worker
bee injects the venom into the victim while stinging. A single worker has
about 0.5 mg venom.
9. BEEKEEPING AS AN ENTREPRENEURAL ACTIVITY
Beekeeping is a labor intensive process and therefore, generates
lot of employment opportunities for people. Most of the work in beekeeping
includes processing of honey manually, hence emphasis is given on hands-
on training. As a beekeeper, you have to perform the following major
activities:
 Decide on the bee species to be kept.
 Prepare a business plan for beekeeping.
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 Arrange all the resources required for setting up an apiary and

order supplies such as
equipment, raw materials etc.
 Plan the activities to be undertaken and estimate operating costs.
 Supervise various activities for beekeeping and make sure that the
temperature,
ventilation and other conditions are proper for honey bees.
 Build and maintain equipment and facilities to ensure health standards
and high quality of bee products.
 Seek advice of experts.
 Observe and record the amount of produce, expenditure, sale, etc.
 Adjust practices to increase production and decrease expenditure.
 Manage the business.
10. DISEASE PREVENTION CONTROL AND ANALYSIS
This is one of the major constraint for the development of beekeeping
in India. We need to have regional and also central bee disease analysis
laboratories. There is lack of sufficient financial help from government and
lending institutions for the development of beekeeping. Beekeeping requires
long term loans at easy rates of interest. The bee colony produces honey
only after almost a year initially and then seasonally. Beekeepers need help
to be able to get finance for bee colonies and equipment. Insurance of bee
colonies needs to be done at a reasonable premium so that beekeepers can
recover their losses in case of disease or the loss of bees due to other
factors. No Tax or other Monetary Benefits for Beekeeping. Beekeeping
is neither considered an industry nor an agricultural activity and there is no
tax benefit on beekeeping income. No Control on the Use of Pesticides by
Farmers Leading to Death of Bee Colonies in Field Locations. The
indiscriminate use of pesticides leads to the destruction of bee colonies in
the field. There is no legislation restricting the farmer from the use of
pesticides that are harmful to bee colonies.
11. CONCLUSION
Beekeeping is a profitable enterprise by doing it scientifically, a lot
work needs to be done in this field. Honey is a good source of nutrition with
medicinal property. As 80% of total population of the country lives in the
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rural areas and out of which 63% is depend on agriculture. Honey, beeswax
and products made from them, such as candles, wine and food items have
cultural value in many societies and may be used in rituals for births,
marriages, funerals and religious celebrations. Beekeepers are generally
respected for their craft. Bees and beekeeping have a wholesome reputation.
Images of bees are used as symbols of hard work and industry, often by
banks and financial institutions. Beekeeping products such as pollen, propolis
and royal jelly can be harvested and marketed, although special techniques
and equipment are needed for some of these products. The doubling of
farmers income by 2020 is only be possible when farmers will adopt bee
keeping as a part of agriculture/ horticulture.
12. FUTURE PROSPECTS
Honey industry in the country becomes a major foreign exchange
earner if international standards are met. Beekeeping is an age-old tradition
in India but it is considered a no-investment profit giving venture in most
areas. Of late it has been recognized that it has the potential to develop as
a prime agri-horticultural and forest-based industry. Honey production is a
lucrative business and it generates employment.
The informal sector is providing up to 70% of the honey & bees
wax market in India. Indian honey has a good export market. With the use
of modern collection, storage, beekeeping equipment, Honey processing
plants and bottling technologies the potential export market can be tapped.
The problem is one of quality honey production. From a buyer’s point of
view, quality honey is essential.
But India, he said, is lacking on that front. There is a need to look specifically
at how to promote quality production and develop an export market. Indian
honey offers tremendous export potential. For tapping its potential, there is
need to chalk out suitable export strategy. Some of the points which merit
attention of the policy makers in this respect include:
 Application of advanced technology for collection, and processing
of honey
 Adhering strictly to the quality standards including health regulations
laid down by markets such as the European Union, Japan and the
USA
 Recognition of bee keeping as agro-industry
 Priority allocation and concessions to be made applicable for material
needed for beekeeping, like wood for bee boxes, sugar for
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supplementing feeds to bees and medicines for bees’ diseases

 Campaigning abroad about quality of our honey
 Developing an efficient export marketing network to optimize the
production and exports
 Creating an Indian logo as a joint effort of exporters, APEDA and
the Ministry of Commerce and Industry, government of India. The
brand equity thus created can be better marketed for higher sales
realization.
 Timely implementation of the above steps is likely to pave the way
for a quantum jump in the export of honey from the country in the
coming years.
REFERENCES
FAO. 2010. Food and Agricultural Organization, Rome, Italy.
Mishra, RC. 2012. Honey bee and their management in India, Project Co-ordinator, AICRP,
H.A.U, Hissar
Shrivastava, K.P and Dhaliwal, G.S.2016. A textbook of applied entomology, by Kalyani
Publishing House, New Delhi, 333p.
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Chapter
20
ORGANIZATIONAL AND FINANCIAL
SUPPORT FOR OFF-FARM
ENTREPRENEURSHIP
DEVELOPMENT OF WOMEN
Renu Jethi, Pratibha Joshi, Ankita Kandpal and Poonam Kashyap

1. INTRODUCTION
Agricultural sector alone is incapable of creating additional
employment opportunities in the wake of increasing population, limited land
resources and climate change. As a result, the impetus for achieving
sustained development in rural areas has to focus on expanding the base
off-farm activities. Many studies reported that income from rural off-farm
enterprises greatly exceeded the value of farm wage income (Reardon et
al., 2007). If such activities are encouraged and comprehensive planning
approach can be evolved it could provide the solution to the problems of
rural areas such as poverty, unemployment and out-migration of the rural
work force. Obinna (2014) described off- farm activities to constitute of all
the income generating activities that a farmer embarks on in addition to
farming. Off- farm activities contribute to household food security by
providing cash for food and other household purchases and equally, in
agricultural assets acquisition. Babatunde et al (2010) also, reported that
off- farm activities are risks minimizing strategies that safeguarded farmers
against crop and market failures. Economic status of women is very weak
and pathetic in rural areas of India and opportunities of earning are very
less and risky. In this scenario, off farm entrepreneurship activities through
formation of Self Help Groups (SHGs) can paved the way for economic
independence of rural women (Sharma et al. 2012).
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2. SHARE OF AGRICULTURAL INCOME IN TOTAL

HOUSEHOLD INCOME
Table 1 represents various income sources of agricultural households
in two periods, 2012-13 and 2015-16 in various land sizes. As can be seen
in the table 1, total income of agricultural households have been increased
in each land size category from 2012-13 to 2015-16. For marginal land
holding groups (less than 0.01, 0.01-0.4 and 0.41-1 ha), the income coming
from cultivation has a very less share in total income of agricultural
households, while wages/salaries and non-farm sources occupy a major
share in this group in both the period. However, for the higher land size
groups (for 1.01-2, and more than 2 ha) the share of income from cultivation
is highest followed by income from wages/ salaries, non-farm business and
livestock rearing.

Figure 1: Share of various income sources of agricultural households in their total income
in 2012-13 and 2015-16.

Overall, for all the agricultural households in the country, the share
of cultivation is highest, thought it has been decreased from 48 percent to
35 percent from 2012-13 to 2015-16 (Fig. 1). Similarly, share of income
from livestock rearing also declined from 12 to 8 percent in this period.
However, there has been increase in share of wages/salaries and non-farm
business in the total income of agricultural households from 32 to 34 percent
and 8 to 23 percent, respectively. This trend indicates growing importance
of other sources of income for achieving better living conditions and livelihood
security for farmers.
Entrepreneurship is a key factor for the survival of any small-scale
farming in an ever-changing and increasingly complex global economy.
Entrepreneurship plays a significant role in the economic development of a
country and is a most powerful weapon to fight against poverty and
Table 1: Sources of income of agricultural households during 2012-13 and 2015-16
Sources of Wages/Salary (Rs.) Cultivation (Rs.) Farming of animals Non-farm business Total income
income (Rs.) (Rs.)
Year/ Size of 2012-13 2015-16 2012-13 2015-16 2012-13 2015-16 2012-13 2015-16 2012-13 2015-16
land (ha)
less than 0.01 2902 3508 30 566 1181 1345 447 2717 4561 8136
(63.63 %) (43.12 %) (0.66%) (6.96%) (25.89%) (16.53%) (9.8%) (33.39%) (100%) (100%)
0.01-0.4 2386 2932 687 1488 621 517 459 1713 4152 6650
(57.47%) (44.09%) (16.55%) (22.38%) (14.96%) (7.77%) (11.05%) (25.76%) (100%) (100%)
0.41-1 2011 3044 2145 2501 629 624 462 2001 5247 8171
(38.33 %) (37.25 %) (40.88%) (30.61%) (11.99%) (7.64%) (8.81%) (24.49%) (100%) (100%)
1.01-2 1728 2777 4209 4485 818 763 593 1965 7348 9990
(23.52 %) (27.8%) (57.28%) (44.89%) (11.13%) (7.64%) (8.07%) (19.67%) (100%) (100%)
More than 2 1751 3340 10363 7572 1298 978 674 2792 14085 14682
(12.43 %) (22.75%) (73.57%) (51.57%) (9.21%) (6.66%) (4.79%) (19.02%) (100%) (100%)
Source: NSSO 70th round report (Key Indicators of Situation of Agricultural Households in India); NABARD’s All India Rural Financial Inclusion
Survey 2016-17
Note: Data in percentage in the parenthesis shows share of income source in the total income in various land size categories.
321
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unemployment. A large percentage of micro enterprises are undertaken by

women. Sidhu and Kaur (2006) revealed that entrepreneurship is the only
solution for the growing un-employment among rural youth. It helps to
generate employment for number of people within their own social system.
This is more beneficial for women in rural areas as it enables them to
supplement their family income while taking care of their home, farm and
livestock. According to Obinna (2017), rural women entrepreneurs engaged
in off farm activities greatly helps in reducing poverty by supplementing the
meager income from subsistent farming. They have abundant opportunities
and resources to take up an enterprise. In India, almost 70 percent of the
population is still self-employed. ‘Women entrepreneurship’ became an
important phenomenon in later half of eighties. According to Khanka (2000),
a women entrepreneur is a confident, innovative and creative women capable
of achieving economic individuality or in collaboration generates employment
opportunities for others through initiating, establishing and running an
enterprise by keeping pace with her personal, family and social life. Women
are emerging an excellent entrepreneur and changing the face of the business
of today. Women Entrepreneurs may be defined as the women or a group
of women who initiate, organize and operate a business enterprise. Women
entrepreneur is a person who accepts challenging role to meet her personal
need and become economically independent. Government of India has
defined women entrepreneurs as an enterprise owned and controlled by a
woman having a minimum financial interest of 51% of the capital and giving
at least 51% of employment generated in the enterprise to women (GoI
2006). Women participation in home, farm and other activities is dependent
upon their social, cultural and economic conditions. It also varies from region
to region and even within a region, their involvement varies widely among
different farming system, castes, classes and socio-economic status. In
spite of several restrictions, women of the low-income households are found
working outside their home due to severe economic pressures, while women
of the medium and high-income household seek employment in order to
decrease self-dependency and to raise their standard of living. Now Indian
women entrepreneurs are actively showing their presence in new areas
like herbal marketing, food processing, handicraft making, readymade
garments, tailoring etc. India envisions a future where women are
independent and self-reliant. In Modern India, more and more women are
taking up entrepreneurial activity especially in micro, small and medium
scale enterprises (Dangi and Ritika, 2014). Women are more into technology
than in the previous years. Digital media have also empowered them a lot
more to come into entrepreneurship (Manshani and Dubey, 2017).
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Rural women’s access to financial services is a key factor of

successful rural development strategies for inclusive growth. Designing
appropriate financial products for women to be able to save, borrow and
insure is essential to strengthen women’s role as entrepreneurs. In the
words of Former President APJ Abdul Kalam “empowering women is a
prerequisite for creating a good nation, when women are empowered,
society with stability is assured. Empowerment of women is essential as
their thoughts and their value systems lead to the development of a good
family, good society and ultimately a good nation.” Pandit Jawaharlal Lal
Nehru has remarked “When women move forward, the family moves, the
village moves and the Nation moves”. There are several factors which
motivates women to initiate an enterprise like personal motivation, socio-
cultural factors, urge for social identity, economic independence, availability
of resources, government support and various women related schemes and
a conducive business environment.
3. OFF FARM OPPORTUNITIES FOR RURAL WOMEN
ENTREPRENEURS
Women in rural areas can choose different enterprises depending
upon a number of factors ranging from landholding, subsidiary occupation,
agro-climatic condition and socio-cultural characteristics of the rural women
and her family members.
 Vermiculture: Vermiculture can become a prominent micro-
enterprise for rural landless woman or women groups, as it requires
very less investment. Women can utilize both her technical skills
and raw materials from the farm and livestock to earn substantial
income. Vermiculture as an enterprise is less expensive in terms of
costs and provide relatively fair employment with less investment.
Vermicomposting is an excellent technique for recycling food waste.
It is environment friendly technology as it converts organic waste
generated in farm and farms and households to productive plant
nutrients. Rural women can play a vital role in vermiculture
production, management and marketing.
 Food, Fruits and vegetable processing: Women have greater
opportunities for adding value to raw commodities because of
increased consumer demand and preferences. Rural women can
start micro-enterprises in food preservation by getting some
exposure to modern techniques in producing edible and preserved
products such as pickles, jam, jellies and juices. Many women groups
are also engaged in making dal using small and portable dal mills.
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They can also develop skill in packaging, storing and marketing

through occupation-based trainings. Women involved in this
enterprise can fetch a large share of the food money by producing
value added products instead for just producing raw commodity.
 Ready to eat products: Factors such as increasing working men
and women population, busy work schedules and changing food
habits are fueling the popularity of the ready to eat and packaged
food sector in India. Women entrepreneurs and women groups
can enter the business by understanding basics of food technology,
food safety and demands of their target groups. Setting up of
efficient packing unit is a major factor for food safety, easy
transportation and distribution. This sector requires a good
understanding of merchandising, logistics and cost control.
 Small scale agro-processing units: processing of food
commodities is an essential step in value addition. Processed
products have now become important because of consumer’
preferences. Most of the women are now performing micro level
food processing enterprises with very low start up capitals that
usually affects the growth and sustainability of the agro-food
processing enterprises. Women agro food processors lack
entrepreneurial trainings. Therefore, there should be provision of
credit facilities and entrepreneurial trainings for would-be small-
scale women entrepreneurial in the food processing enterprise.
 Boutique and beauty Parlor: Many government organizations
like KVKs, RSETIs, NGOs and private organizations are providing
skill trainings to women through their different projects. Vedanta
foundation are proving skill training courses in tailoring and beautician
of 3-6 months duration. The foundation has aptly set up training
centers across the country to reach out the needy women seeking
a platform for developing skill offering them to livelihood
opportunities. Through its Sakhi centers it offers training in skill
keeping in mind the weak educational background of the targeted
women.
 Handicraft items: Handicraft involves creation of wide range of
objects including clothing, jewelry making, paper crafts, carpet
making, paper craft, basket weaving, wood craft, embroidery
materials etc. According to world bank report after agriculture, the
most important source of women employment is home based work.
It is the work of art, skill and internal talent which an uneducated
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women also can do and can create new designs and items through
imagination.
Considering the benefits of Entrepreneurship development in farm
and off-farm sectors, various initiatives have been taken by the government
of India through Industrial Policies and Five-Year Plans specifically focusing
on the growth of small scale sector, setting up of Special Economic Zones
(SEZs), setting up of Entrepreneurship Institutions, organizing
Entrepreneurship Development Programmes (EDPs) and various
Government Programmes and Schemes for the promotion of
entrepreneurship. Responding to the increasing trend of women opting for
entrepreneurship, many organizations have come up with the idea of special
training for women interested in setting up their own enterprise. Government
provides many types of incentives to entrepreneurs for motivating and
increasing their productivity.
Implementation of various policies and programs for providing
infrastructure and support services to small enterprises is undertaken through
its attached departments such as Small Industries Development Organization
(SIDO), statuary bodies and other organizations such as Khadi and Village
Industries Commission (KVIC), COIR Board; a public sector undertaking,
National Small Industries Corporation (NSIC), training institutes such as
National Institute of Small Industry Extension Training (NISIET) Hyderabad,
National Institute for Entrepreneurship (NIE) Guwahati and National Institute
for Entrepreneurship and Small Business Development (NIESBD), New
Delhi.
The primary responsibility of promotion and development of Micro,
Small and Medium Enterpreneurships is of the State Governments. However,
the Government of India, supplements the efforts of the State Governments
through various initiatives. The role of the Ministry of MSME and its
organizations is to assist the States in their efforts to encourage
entrepreneurship, employment and livelihood opportunities and enhance the
competitiveness of MSMEs in the changed economic scenario. The
schemes/ programmes undertaken by the Ministry and its organizations
seek to facilitate/provide:
i) adequate flow of credit from financial institutions/banks;
ii) support for technology upgradation and modernization;
iii) integrated infrastructural facilities;
iv) modern testing facilities and quality certification;
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v) access to modern management practices;

vi) entrepreneurship development and skill upgradation through
appropriate training facilities;
vii) support for product development, design intervention and packaging;
viii) welfare of artisans and workers;
ix) assistance for better access to domestic and export markets and
x) cluster-wise measures to promote capacity-building and
empowerment of the units and their collectives.
4. RECENT POLICY REFORMS AND SCHEMES FOR
ENTREPRENEURSHIP DEVELOPMENT
 Support to Training and Employment Programme for Women
(STEP) - The Ministry of Women and Child Development
introduced STEP scheme to generate employment opportunities to
women. Under this programme women above the age of 16 are
providing skill based training for self employment in the areas of
Agriculture, Food Processing, Handlooms, Handicraft, Computers
and others
 Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Pradhan
Mantri Kaushal Vikas Yojana (PMKVY) is the flagship outcome-
based skill training scheme of the Ministry of Skill Development &
Entrepreneurship (MSDE). This skill certification and reward
scheme aims to enable and mobilize a large number of Indian youths
to take up skill training and become employable and earn their
livelihood. The skill card is given to those certified under PMKVY
which acts as authenticate skill certification. Under the scheme,
monetary reward is provided to trainees who are successfully
trained, assessed and certified in skill courses run by affiliated
training providers. The objective of this Scheme is to encourage
skill development for youth by providing monetary rewards for
successful completion of approved training programs. Specifically,
the Scheme aims to:
a. Encourage standardization in the certification process and
initiate a process of creating a registry of skills
b. Enable and mobilize a large number of Indian youth to take up
skill training and become employable and earn their livelihood.
Increase productivity of the existing workforce and align the
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training and certification to the needs of the country.

c. Provide Monetary Awards for Skill Certification to boost
employability and productivity of youth by incentivizing them
for skill trainings
Various types of trainings are undertaken in PMKVY that includes
self employed tailors, hand embroider, small poultry farmer,
technician, stitching operator, carpenter etc. this is resulting in
creation of new micro-enterprises resulting in creation of new micro-
enterprises resulting in creation of new micro-enterprises by skilled
and competent PMKVY trainees.
 Prime Minister Employment Generation Programme
(PMEGP): The scheme is implemented by Khadi and Village
Industries Commission (KVIC), as the nodal agency at the national
level. At the state level, the scheme is implemented through State
KVIC Directorates, State Khadi and Village Industries Boards
(KVIBs)and District Industries Centres (DICs) and banks. The
Government subsidy under the scheme is routed by KVIC through
the identified banks for eventual distribution to the beneficiaries/
entrepreneurs in their bank accounts with following objectives
a. To generate employment opportunities in rural as well as urban
areas of the country through setting up of new self-employment
ventures/projects/micro enterprises.
b. To bring together widely dispersed traditional artisans/ rural
and urban unemployed youth and give them self-employment
opportunities to the extent possible, at their place.
c. To provide continuous and sustainable employment to a large
segment of traditional and prospective artisans and rural and
urban unemployed youth in the country, so as to help arrest
migration of rural youth to urban areas.
d. To increase the wage-earning capacity of artisans and
contribute to increase in the growth rate of rural and urban
employment.
Under the scheme, any individual above 18 years of age with VIII
standard pass can apply for projects costing above Rs 10 lakhs in
manufacturing sector and above 5 lakhs in the business/service
sector. Self Help Groups, registered societies, cooperatives are
also eligible for the scheme.
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 Make in India: It was launched on 25th September 2014 to

encourage multi-national, as well as domestic companies to
manufacture their products in India. The major objective behind
the initiative is to focus on job creation and skill enhancement in 25
sectors of the economy. The initiative also aims at high quality
standards and minimizing the impact on the environment. Its focus
is on sectors like automobiles, construction, defence manufacturing,
electrical machinery, food processing, textiles and garments, leather
etc.
 ‘Start-Up India’ Initiative: It aims to encourage entrepreneurship
among the youth of India. The ‘Start-up India: Stand up India’
promotes bank financing for start-ups and offer incentives to
enhance entrepreneurship and job creation. This initiative aims to
provide a new dimension to entrepreneurship and help in setting up
of a network of start-ups in the country. Credit guarantee fund
scheme, which has been launched under the standup India, had
been designed to address the needs of the SC/ST categories along
with women entrepreneurs. In this every branch of each bank will
give loans and credit guarantee protection to at least two
entrepreneurs under the scheme. Loan facilities between Rs 10
lakh and up to Rs 1crore will be made available for SC/ST and
women entrepreneurs for non-farm venture.
 Venture Capital Assistance Scheme (sponsored by Small
Farmers’ Agri-business Consortium): Venture Capital
Assistance Scheme is a Central Sector Scheme for agri-business
development implemented by Small Farmers’ Agri-business
Consortium (SFAC). The scheme is designed in a way to provide
financial assistance to entrepreneurs who are interested in setting
up agri-business units for primary and higher-level value addition
of agriculture produce and products. The financial assistance under
the scheme is available to Individual entrepreneurs, farmers,
companies/partnership/ proprietary firms, Farmers’ Producer
Companies/Farmers Producer Organization/ Self-help groups or
any units located in agri-export zones etc. SFAC provides financial
assistance up to a ceiling of Rs.5 lakh depending upon size, location,
activity and coverage for preparation of bankable Detailed Project
Reports through empaneled consultants/institutions. Assistance is
also be provided to State SFACs for undertaking promotional
activities for agri-business development.
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 Raw Material Assistance Scheme (Sponsored by Ministry

of Small and Micro Enterprises (MSME): Raw Material
Assistance Scheme aims at helping MSEs by way of financing the
purchase of Raw Material (both indigenous & imported). This gives
an opportunity to MSEs to focus better on manufacturing quality
products. The main objectives are:
a. Financial Assistance for procurement of raw material up to 90
days.
b. MSEs to help to avail economics of purchases like bulk
purchase; cash discount etc
c. National Small Industries Corporation (NSIC) take care of all
the procedures, documentation & issue of Letter of credit in
case of imports.
 Support for Entrepreneurial and Managerial Development
of SMEs (Sponsored by Ministry of Small and Micro
Enterprises): The Scheme provides early stage funding for
nurturing innovative business ideas (new indigenous technology,
processes, products, procedure etc.) which could be commercialized
in a year. The main objective is to promote development of
knowledge-based innovative ventures and to improve the
competitiveness and survival instincts of the Micro, Small and
Medium Enterprises (MSMEs).
 Info-mediary Services (Sponsored by National Small
Industries corporation): Information is becoming almost vital.
National Small Industries corporation (NSIC) offers Info-mediary
Services which is a one-stop, one-window bouquet of aids that will
provide information on business, technology and finance, and also
exhibit core competence of Indian SMEs. The corporation offers
services through its Mart www.msmemart.com; which is a Business
to Business(B2B) and Business to Customer (B2C) compliant web
portal. Following services are available through annual membership.
 Interactive Database of MSMEs
 Global & National Tender Notices
 Self web development tool
 Centralized mail system
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 Free mail boxes

 Payment Gateway for membership subscription
 Popular Products Section
 Unlimited global Trade Leads
 Trust Seal of NSIC
 Multi Product Cart
 Online Buying / Selling
 Multiple payment Option
 MSME Web Store
 Multiple Language Support
 Discussion Board
 Call Centre Support & Live Chat
 Other Value-added Services
5. ICAR INITIATIVES FOR ENTREPRENEURSHIP DEVELOPMENT
Indian Council of Agriculture Research is also promoting
entrepreneurship development by capacity building and support farmers
through motivation and entrepreneurship development. It also focuses on
Government schemes and incentives for promotion of entrepreneurship
through its various programs viz. Zonal Technology Management and
Business Planning and Development Unit, a-IDEA and Student READY
etc. Five ZTM - BPD Units are being set up in five zones of the country.
The Institutes identified for establishing the ZTM - BPD are Indian
Agricultural Research Institute (IARI), New Delhi (North Zone), Indian
Veterinary Research Institute (IVRI), Izzatnagar (North Zone), National
Institute of Research on Jute and Allied Fibres Technology (NIRJAFT),
Kolkata (East Zone), Central Institute for Research on Cotton Technology
(CIRCOT), Mumbai (West Zone) and Central Institute of Fisheries
Technology (CIFT), Kochi (South Zone). ZTM & BPD unit’s main objective
is to do IP protection, showcasing, transferring and commercializing the
ICAR institutes innovations. It also act as Agri Business incubator to Incubate
new startup businesses.
 331

a-IDEA:
a-IDEA (Association for Innovation Development of Entrepreneurship in
Agriculture), is a Technology Business Incubator (TBI) hosted by ICAR-
National Academy of Agricultural Research Management, Hyderabad
(ICAR-NAARM) & Department of Science & Technology, Govt. of India
(DST, GOI). a-IDEA has been housed in the Centre for Agri-Innovation at
ICAR-NAARM for fostering innovation and entrepreneurship in agriculture
in India. a-IDEA aims to help entrepreneurs ideate, incubate and accelerate
their innovative early stage startups that are scalable to become competitive
food and agri-business ventures through capacity building, mentoring,
networking and advisory support.
Financial assistance from banking sector
 MUDRA Bank : Micro Units Development Refinance Agency
(MUDRA) Bank has been set up on 8th April 2015 for development
of micro units to encourage entrepreneurship in India and provide
the funding to the non-corporate small business sector Main objective
is to provide loan to small businesses. MUDRA Bank provides
refinance to Banks, MFIs, NBFCs etc. for loans to micro units
having loan requirement from Rs 50000 to Rs. 10 lakh. Under
MUDRA Yojana, MUDRA Bank has launched three products
named Shishu, Kishor and Tarun to signify the stage of growth and
funding needs of entrepreneurs.
 Stree Shakti Package for women entrepreneurs: This scheme
is offered by most of the SBI branches to women who have 50%
share in the ownership of a firm or business and have taken part in
the state agencies run Entrepreneurship Development Programmes
(EDP).
 Bharatiya Mahila Bank Business Loan: This loan acts as a
support system for budding women entrepreneurs looking to start
new ventures in the fields of the retail sector. Bhartiya Mahila
Bank launched in 2013, offers loan against property, MICRO loans,
and SME loans. The maximum loan amount under this loan goes
up to ¹ 20 crores in case of manufacturing industries and also a
concession is available to the extent of 0.25% on the interest rate
and interest rates usually range from 10.15% and higher.
Additionally, under the Credit Guarantee Fund Trust for Micro and
Small Enterprises (CGTMSE), there is no requirement of collateral
security for a loan of up to ¹ 1 crore.
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 Dena Shakti Scheme: under this scheme financial assistance is

provided by Dena bank to women entrepreneurs working in the
fields of agriculture, manufacturing, micro-credit, retail stores. The
interest rate is also decreased by 0.25% along with the maximum
loan amount being ¹ 20 lakhs for retail trade; education and housing
whereas ¹ 50,000 under the microcredit.
 Udyogini Scheme: This scheme is offered by Punjab and Sind
Bank to provide women entrepreneurs involved in agriculture, retail
and small business enterprises to get loans for business at flexible
terms and concessional interest rates. The maximum amount of
loan under this scheme for women between the age of 18-45 years
is ¹ 1 lakhs but family income is also taken into consideration and is
set at ¹ 45,000 per annum for SC/ST women.
There are various hinderances in the success of women
entrepreneurs like financial, marketing, working environment, social
constraints etc. Efforts are done to remove some of the obstacles which
were hindering success of women yet some still remains. Some of the
major challenges faced by women entrepreneurs are as follows:
 Lack of financial assistance:
Sometimes the financial institutions are skeptical about the
entrepreneurial abilities of women. Women lack easy access to
funds due to their inability to provide tangible security to financial
institutions. In rural areas of India, very few women have tangible
property in their name. presently many institutions are coming up
to extend their support to women in the form of incentives, loans
and schemes etc. but most of the women are unaware about all
these assistances provided by the institutions. Therefore, efforts
taken towards supporting women entrepreneurs may not reach the
women in rural and backward areas.
 Lack of literacy and knowledge:
Women in rural areas are ignorant about the new technology and
are usually unskilled. Often, they are not able to get necessary
training and are not able to do an initial research on new method of
production and marketing.
 Lack of raw material:
In rural areas mostly due to poor road connectivity and remoteness,
it is quite difficult for women to make raw material available round
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the year. Raw material are important component as it affects final

production. Women in rural areas really face difficulty in getting
necessary raw material in required amount and in reasonable prices
which drastically affects profitability of the enterprise.
 Socio-cultural barriers:
The traditions and customs prevalent in Indian societies towards
women sometimes stand as an obstacle before them to grow and
prosper. The conventional roles assigned to women in rural areas
are often restricts their free mobility and freedom to think and
work. Usually women have to face more challenges from their
culture, society and family than their male counterparts. Women
have more family and personal obligations which sometimes proves
to be a great barrier for succeeding in enterprise career. Very few
become successful by managing both home and business efficiently.
 Cut throat competition
Majority of the women entrepreneurs do not have perfect
organizational setup. They have to face a tough competition with
organized sector and male counterparts who have vast experience
along with advance technology for managing their entreprises.
 Limited managerial competence:
As women in rural areas are less educated, they lack managerial
skills like planning, organizing, controlling, staffing, directing,
motivating etc. which are essential components for a successful
entrepreneur.
 Marketing problems:
Women face marketing related problems due to restricted mobility.
They are mostly confined to four walls of theirs houses. They usually
have to depend on intermediaries for marketing and sale of products.
Therefore, there are more chances that intermediaries take major
part of the surplus or profit.
6. CONCLUSION
Rural households pursue a mix of activities for income stabilization
and risk mitigation. There is now high involvement of women in diversification
activities in farm and off farm sectors. In low income groups, economic
pressure is forcing women to break away their traditional roles of housewives
and move beyond the four walls of their homes. Today world is changing
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very fast with technology development, modernization, industrialization,

urbanization and education. Therefore, employment opportunities have
increased for rural women. Entrepreneurship development of women will
improve wealth of nation in general and family in particular. Rural
entrepreneurship can be developed with proper skill training. Training
Programme on management skill should be provided to women community.
Effective steps are needed to provide entrepreneurial awareness, orientation
and skill development programs for women in rural areas. Women
entrepreneurs are coming forward with their innovative and creative ideas
for successful startups and achieving their dreams and aspirations in male
dominated society. Despite several hurdles like family obligation and funding
issue, etc., women are successfully challenging the world and making their
own identity. The role of Women entrepreneur in economic development is
now being recognized and steps are also being taken to promote women
entrepreneurship. The government agencies, other organizations,
entrepreneurship promotion groups and bodies along with government and
our society must also promote and encourage it. The recent policy reforms
and schemes clearly reveal that government is leveraging on skill
development of women for ensuring sustainable entrepreneurship
development in the country. However, a proper supervision and monitoring
mechanism should be set to analyze the outcome of these initiatives on
periodic basis and to avoid the overlapping of activities performed by the
newly established government agencies and programmes. Rural women
should be encouraged to form cooperatives that will enable them access
loans from banks.
REFERENCES
Babatunde, R. O., Olagunju, F. I., Fakayode, S. B. and Adejobi, A. O. (2010). Determinants
of participation in Off – farm employment among smallholder farming Housholds
in Kwara State, Nigeria. Production, Agriculture and Technology 6(2), 1 – 14
Dangi N and Ritika (2014). Women entrepreneurship and growth and performance of
MSMEs in India. International Journal of Advance Research in Computer Science
and Management Studies. 2(4):174-182.
Kanoi, S. (2011) “Role of Government in Developing Entrepreneurship in Assam”, Ph.D
dissertation, Assam University.
Khanka, S.S. 2000, “Entrepreneurship Development, publishers S. Chand & company
Ltd. India.
Ministry of Skill Development and Entrepreneurship, (2016). [Online]. Available: http://
www.skilldevelopment.gov.in/background.html [Retrieved on 25- Sep- 2018].
Manshani, S and Dubey, A (2017). Startup women in startup India: A study of women
entrepreneurs in India. International Journal of Business and General Management.
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6(4):91-100.
National Skill Development Agency, (2014). http://www.nsda.gov.in/ContentPage/
contentindexpage.html?name=Introduction [Retrieved on 24- Sep- 2018].
National Skill Development Corporation, (2015). http://www.nsdcindia.org/organisation-
profile [Retrieved on 25- Sep- 2018].
National Skill Development Corporation, “Pradhan Mantri Kaushal VikasYojana
(PMKVY)”, Ministry of Skill Development and Entrepreneurship, Government
of India, New Delhi, 2015.
Obinna, L. O. (2014): Assessing the Benefits of Non- farm and Farm Activities Among
Rural Dwellers in Ohafia and Umuahia Agricultural Zones of Abia State, Nigeria.
Nigerian Journal of Agriculture, Food and Environment 10 (4) 106 – 111.
Obinna, L. O. and Onu S.E (2017) Contributions of rural women entrepreneurs in non-
farm and off farm enterprises of households poverty reduction in Abia state. Journal
of Agricultural Extension. 21(3): 143-151.
Reardon, T.; Berdegue, J.; Barrett, C. B. and Stamoutis, K. (2007). Household Income
Diversification into Rural Economy: Opportunities and Threats in the Developing
World, pp 141 - 182
Sidhu, K. and Kaur, S. (2006). Development of entrepreneurship among rural women, J.
Soc. Sci., 13(2): 147-149
http://ztmbpd.iari.res.in/
http://www.asci-india.com/
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Chapter
21
AGRICULTURAL STARTUPS FOR
BEGINNERS UNDER STARTUP INDIA
Rajeev Ranjan, N. Ravisankar, A. K. Prusty, M. Shamim and
A. S. Panwar

1. INTRODUCTION
Agriculture is the primary occupation for most people in the country.
70% of its population depends directly or indirectly upon agriculture. India
ranks second in the economic contribution of agriculture. The Green
Revolution which started in India in the early 1960s, led to an increase in
food grain production. This landmark agricultural revolution transformed
the nation from chronic dependence on grain imports into an agricultural
powerhouse that is now a net exporter of the world. Gross Value Added by
agriculture, forestry and fishing is estimated at Rs 17.67 trillion (US$ 274.23
billion) in FY18. This provides huge opportunity for new entrepreneurship
opportunities in the sector. In this endeavor, Startup India is a flagship initiative
of the Government of India, intended to build a strong eco-system for
nurturing innovation and Startups in the country that will drive sustainable
economic growth and generate large scale employment opportunities. The
Government through this initiative aims to empower Startups to grow through
innovation and design.
A startup is a newly established business, usually small, started by
1 or a group of individuals. What differentiates it from other new businesses
is that a startup offers a new product or service that is not being given
elsewhere in the same way. The keyword is innovation. The business either
develops a new product/ service or redevelops a current product/service
into something better. Any new company is considered as a startup company.
It can be incorporated as either a Proprietorship Firm (Singly hold), Private
338

Limited Company or a Registered Partnership Firm or a Limited Liability

Partnership. As per Government of India definition of startup for recognition
in Startup India Scheme except Proprietorship Firm all other types of
company are eligible like Private Limited Company or a Registered
Partnership Firm or a Limited Liability.
2. STARTUP AS DEFINED UNDER STARTUP INDIA SCHEME
An entity shall be considered as a Startup:
1. If it is incorporated as a private limited company or registered as a
partnership firm or a limited liability partnership in India.
2. Up to seven years from the date of its incorporation/registration;
however, in the case of startups in the biotechnology sector, the
period shall be up to ten years from the date of its incorporation/
registration.
3. If its turnover for any of the financial years since incorporation/
registration has not exceeded INR 25 Crores.
4. If it is working towards innovation, development or improvement
of products or processes or services, or if it is a scalable business
model with a high potential of employment generation or wealth
creation.
3. BRIEF DETAILS OF THE STARTUP INDIA SCHEME
Startup India is a flagship initiative of the Government of India
(launched January 2016), intended to build a strong eco-system for nurturing
innovation and Startups in the country that will drive sustainable economic
growth and generate large scale employment opportunities. The Government
through this initiative aims to empower Startups to grow through innovation
and design. In order to meet the objectives of the initiative, Government of
India announced Startup India Action Plan that addresses all aspects of the
Startup ecosystem. With this Action Plan the Government hopes to accelerate
spreading of the Startup movement: The Action Plan is divided across the
following areas:
 Simplification and Handholding
 Funding Support and Incentives
 Industry-Academia Partnership and Incubation
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3.1 Action points under startup India initiative

Following are the 19 Action Points under the Startup India initiative:
Simplification and handholding
1. Compliance Regime based on Self-certification
2. Startup India Hub
3. Rolling out of Mobile App and Portal
4. Legal Support and Fast-tracking Patent Examination at Lower Costs
5. Relaxed Norms of Public Procurement for Startups
6. Faster Exit for Startups
Funding support and incentives
7. Providing Funding Support through a Fund of Funds with a Corpus
of INR 10,000 crore
8. Credit Guarantee Fund for Startups
9. Tax Exemption on Capital Gains
10. Tax Exemption to Startups for 3 years
11. Tax Exemption on Investments above Fair Market Value
12. Organizing Startup Fests for Showcasing Innovation and Providing
a Collaboration Platform
Industry-academia partnership and incubation
13. Launch of Atal Innovation Mission (AIM) with Self-Employment
and Talent Utilization (SETU) Program
14. Harnessing Private Sector Expertise for Incubator Setup
15. Building Innovation Centres at National Institutes
16. Setting up of 7 New Research Parks Modeled on the Research
Park Setup at IIT Madras
17. Promoting Startups in the Biotechnology Sector
18. Launching of Innovation Focused Programs for Students
19. Annual Incubator Grand Challenge
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4. HOW TO PROCEED FROM THE SCRATCH

Suppose an individual plans to start a company then he should go
for Proprietorship Firm and later once you find a good partner you can
switch the company to Private limited or other mentioned type above. If
you are a group, you can choose to form a partnership firm or a private
limited or a Limited Liability Firm. In all cases, you need to contact a low
cost CA firm from whom you can get a company registered. If you want to
target to have a startup dedicated to CSR funds, you should register your
company under section 8 with the help of your CA.
A private limited company can be registered in cost of approx 15000
INR inclusive of all documents like Memorandum of Association (MoA),
Article of Association (AoA), Company’s PAN card, GST number, Director
Identification Number (DIN) and two electronic Digital Signature
Certificates. Apart from registration cost, a bank account with minimum
100,000/- balance is required at the time of starting a company. You can
choose the bank from public or private based on the facilities given to a
startup firm. It’s always advisable to choose a bank with which you or your
family has good relationship.
Before proceeding for registering, one should firstly need to know
what type of business he or she is registering. It is advisable to do adequate
research to be sure of the type of business before registering a startup.
Once this is done this, you can go ahead for completion of registration
process and choose name for the startup.
5. REGISTERING A PROFILE ON STARTUP INDIA WEBSITE
Registering a profile on the Startup India website is a fairly simple
process.
1. Simply click on ‘Register’ and fill in the details as required in the
registration form. An OTP will be sent to your registered email
address, post submitting which your profile will get created.
2. You will have an option to select your profile type. For ‘Individuals’,
the profile goes live immediately, whereas for ‘Startups’, the profile
goes under moderation for 24-48 hrs, post which you will be able to
avail all benefits on www.startupindia.gov.in.
Registering a profile on www.startupindia.gov.in, helps in finding
relevant mentors, investors, incubators, accelerators and relevant govt. and
international bodies besides other startups one would want to reach out to,
all under the ‘Ecosystem’ tab on the top of the page.
 341

5.1 Documents required to be uploaded for registering as a startup

in India
1. A letter of recommendation or support.
Any one of the following documents can be submitted, in PDF
format:
 A recommendation, in the format specified by the DIPP, from
an incubator established in a post-graduate college in the
country;
 A letter of support from any central or state government funded
incubator to promote innovation;
 A recommendation, in the format specified by the DIPP,
acknowledging the innovative nature of business, from an
incubator recognized by the central government;
 A letter of funding of not less than 20 percent in equity by any
incubation or angel fund/private equity fund/accelerator or angel
network that is duly registered with the Securities and Exchange
Board of India (SEBI) that endorses its innovative nature of
business;
 A letter of funding by the central or state government as part
of a scheme that promotes innovation; or,
 A patent filed and published in the Journal by the Indian Patent
Office in areas affiliated with the nature of business being
promoted.
2. Incorporation certificate or registration certificate in case of a
partnership firm.
3. Brief description of the innovative nature of the entity’s product or
service offering.
4. Answer whether the entity is interested in availing tax benefits.
5. Self-certification of conditions specified in the official definition –
as mentioned above.
6. Self-certification that the entity applying for startup status is not
the result of splitting up from an existing business entity.
Once the application is uploaded, a recognition number will be
immediately issued to the startup. The certificate of recognition will be
342

released upon the examination of all the documents submitted.

6. BENEFITS PROVIDED TO REGISTERED ENTITIES UNDER
STARTUP INDIA SCHEME
The benefits provided to recognized startups under the Startup India
initiative are:
1. Self-Certification: Self-certify and comply under 3 Environmental
& 6 Labour Laws
2. Tax Exemption: Income Tax exemption for a period of 3
consecutive years and exemption on capital and investments above
Fair Market Value
3. Easy Winding of Company: In 90 days under Insolvency &
Bankruptcy Code, 2016
4. Startup Patent Application & IPR Protection: Fast track patent
application with up to 80% rebate in filling patents
5. Easier Public Procurement Norms: Exemption from requirement
of earnest money deposit, prior turnover and experience
requirements in government tenders
6. SIDBI Fund of Funds: Funds for investment into startups through
Alternate Investment Funds
7. HOW TO CHOOSE A SECTOR IN AGRICULTURE FOR
STARTUP
There are many sectors in agriculture which you can select for
your startup. Some of the key ones are Food processing, trading, Agritech,
Agri Inputs, Agri-Machineries, Livestock Inputs, Flower business,
Consultancies, Organic Agriculture, Agriculture based Skills and Livelihoods,
Commercializing a developed technology or Commercializing your own
technologies etc. Choosing a sector wisely based on you and your team
strength is very important. You can also search for various technologies
developed by a research institute in agriculture, livestock, dairy, CSIR
institutes, IITs, State agriculture universities, agriculture technologies
developed by DRDO, NIFTEM, CRIJAFT or any other research institutes.
A developed technology by any institute should be chosen based on the
market current and future demands. It is also not necessary that one should
go for innovative technologies only, an entrepreneur can also define it own
processes to solve the problem of the society and could startup a social
startup in the region.
 343

If you are an agriculture student you can start the discussion with
your dean of the college on various prospects so that once you are in your
final year, mobilizing towards the same can be done easily without wasting
time
There are many resources and facilities which are made available
to startups in agriculture and food sector. DARE/ICAR is running Zonal
Technology Management (ZTM) in various ICAR institutes & Agrinnovate
which is the commercializing handle for agricultural related technologies of
ICAR. For deciding details of the technologies available, you should search
them, get connected, get the list of technologies available, choose as per
your expertise and future market demand, know the details of the licensing
the technology. Every technology has its own prerequisites before licensing
it to an entrepreneur, so try to give a personal visit to understand the details
if you consider to license an existing technology for commercialization.
What’s next?
It is advisable to connect to an agriculture incubator which is nearest
to you as per the relevancy of your products or services. Some of the
agriculture and social incubators are NAARM, MANAGE, NIAM,
NIFTEM, IARI and other ICAR’s Zonal Technology Management Units,
Nexus (US Embassy), Xlr8AP, ICRISAT ABI, IITs Startup Cell, State
Agriculture University’s Incubators; Incubators under ATAL Innovation
Scheme, State Departments and good universities in the states. After
selecting few of them, talk and schedule a meeting to discuss in details and
introduce yourself. It must be noted that, it is not a one way approach that
an incubator selects a startup; it is a two way approach where you should
also decide if the incubators is capable enough to guide and handhold you
toward a successful venture. So you should ask all the questions in your
mind. After than apply for an incubation support in 5-10 incubators till you
may get selected in one or two based on the relevancy of your technologies.
Once you are incubated and registered your company, go for Startup India
recognition via online mode. Register your entity by filling the online form
on the website. After submission in few days you will get the recognition
certificate with allotted number from Dept. of Industrial Policy and Promotion
(DIPP), Ministry of Commerce.
8. BENEFITS OF THE RECOGNITION UNDER STARTUP INDIA
There are many benefits which can be availed once you are
registered under Startup India Scheme. Some of the benefits are subsidy in
protecting your intellectual property rights (IPR) where government fast
344

tracks your patent application by subsidizing the cost and startup bears on
the main fee. You also get benefits and relaxation in Labour and
Environmental Laws where startups are provided with facility of self
certification. The details for environmental laws can be read under various
notifications in startup India portal. Startup also gets relaxation in norms of
procurement in public sector companies or state/central government. Further
the recognition certificate from startup India also helps in getting investment
especially from the Funds of Fund and tax exemption to selected startups
for three years.
9. RAISING FUNDS
The initial funding is mostly through you, friends and family. Later
after receiving some business in your startup you can show the traction and
growth of your organization to raise funds. Some of the source of the funds
is government grants under various schemes of DST, DBT, CSIR, BIRAC,
MSME etc. Apart from government other source of funds are private
investors whom you or your family might know, angel investors, various
funds under social initiatives run by various organization in the country.
Public sector banks also provide finances under various startup schemes of
Mudra or StandUp India or their own banks schemes. It’s important to
show confidence to the bank about your growth so that they are convinced
to allot you funds for expansion of your business. MSME & NSIC is one
place where a startup should meet the relevant nearest offices and discuss
the various schemes which is relevant for your product marketing and
promotion. They provide lots of marketing and promotion assistance which
could be helpful to give your business a needed push. A startup should
understand the entire ecosystem first, and then target the relevant institutions
for fund raising.
10. ROAD AHEAD
India is expected to achieve the ambitious goal of doubling farm
income by 2022. The agriculture sector in India is expected to generate
better momentum in the next few years due to increased investments in
agricultural infrastructure such as irrigation facilities, warehousing and cold
storage. Furthermore, the growing use of genetically modified crops will
likely improve the yield for Indian farmers. With recent technological
developments in multi facet areas of agriculture coupled with policy support
by govt. and private entities, the sector provides ample of opportunities for
setting up startups opening avenues for entrepreneurship development.
 345

REFERENCES
For Startup India Scheme visit www.startupindia.gov.in
For applying Export-Import Certificate visit dgft.gov.in/
For Marketing and Promotion read MSME, KVIC and NSIC website comprehensively
For self declaration visit https://shramsuvidha.gov.in/startUp.action
For government marketing-selling portal visit https://gem.gov.in/
For ICAR technologies www.agrinnovateindia.co.in | https://icar.org.in/node/130
For ICAR - IARI www.ztmbpd.iari.res.in/
https://www.india-briefing.com/news/startup-india-all-you-need-to-know-12076.html/
Agri-Entrepreneurship
Challenges and Opportunities

Editors
Poonam Kashyap
A. K. Prusty
A. S. Panwar
Sunil Kumar
Peyush Punia
N. Ravisankar
Vipin Kumar

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© Copyright 2019 Editor and Publisher

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 FOREWORD

Agriculture provides livelihood for about 58 % of India’s population.

Gross Value Added by agriculture, forestry and fishing is found to be Rs
17.67 trillion (US$ 274.23 billion) during 2017-18. However, the agricultural
sector contributes only 14 % of GDP. Further, agrarian distress is attributed
to low profitability and it is observed that for an output of Rs. 100, the input
cost is Rs. 64. Situations like these have made agriculture a low-profit
enterprise in India. With respect to agricultural production India stands second
but as far as export are concerned it is ranked 14th in the world. India’s
average agricultural production per hectare is only half of the of the world’s
average (50%), which indicates the need and potential for development.
Agripreneurship is the process of adopting new methods, processes,
techniques in agriculture or the allied sectors of agriculture, for better output
and economic earnings. Agripreneurship converts agricultural activity into
an entrepreneurial activity. By adopting innovative ideas in agriculture and
allied sectors, an agripreneur can drive the changes in rural economy. Several
opportunities such as crop production, dairying, bee keeping, secondary
agriculture, food processing, input production, market led agriculture etc
exist in the field for entrepreneurship which offers scope for employment
for youth, enhancing income and decent livelihood for the people associated
with the sector. Some of the new schemes such as Start-up and Make in
India are making inroads to agriculture-based entrepreneurship.
Start-ups are providing missing links in the agri-value chain and
delivering efficient products, technologies and services to the farmers on
one hand and the consumers on the other hand. Farm automation, weather
forecasting, drone use, inputs retailing, equipment renting, online vegetable
marketing, smart poultry and dairy ventures, climate smart agriculture,
protected cultivation, innovative food processing and packaging are major
focus areas for agri-pruners and start up. Therefore, the sector needs to be
guided with proper knowledge on options available in Agriculture for Agri-
pruners, process of establishment etc.
In this endeavour, details of agri-prunership options such as seed
production, export oriented commodities, high value crops, protected farming,
processing of perishable commodities, floriculture, bovines to equines,
aquaculture, mushroom, bee keeping etc along with the process of
establishment, financing and use of information communication tools are
ascribed in this publication for agri-pruners which will be of immense value
to the progressive farmers, rural and urban youths for becoming Agri-pruner.
I congratulate the authors for bringing out the publication on Agri-
Entrepreneurship: Challenges and Opportunities and hope, this will be
highly useful for all the stake holders involved in agriculture sector.
 List of Contributors
Dr A K Prusty Dr Amit Kumar Verma
Senior Scientist ICAR-Indian Institute of Associate Professor
Farming System Research, College of Veterinary Science
Modipuram, , Meerut-250110, U.P., India SVPUAT, Modipuram,
Meerut-250 001 (UP) India
Dr Anuradha Bhardwaj
Scientist (SS) (Animal Biotechnology), Dr Bibwe Bhushan
ICAR-National Research Centre on Scientist
Equines, Horticultural Crop Processing Division,
Hisar-125001, Haryana, India. ICAR-CIPHET Abohar
Punjab-152116, India
Dr A. Kumar, Dr Anant Kumar
Senior Scientist ICAR-Central Institute Assistant professor/SMS
for Research on Goat, Makhdoom, Horticulture KVK Ghaziabad,
Farah, Mathura-281122, India Sardar Vallabhbhai Patel University of
Agriculture & Technology,
Dr Arun Kumar MB Meerut-250110, U.P., India
Principal Scientist,
Division of seed Science and Technology, Dr Brijesh Kumar
ICAR-IARI, New Delhi Scientist Epartment of VGO,
Indian Veterinary Research Institute,
Dr A.K. Das Izatnagar, Bareilly 243 122, U.P. India
Principal Scientist Cattle Genetics &
Breeding Dr Anil Kumar
Division ICAR-Central Institute for Principal Scientist,
Research on Cattle, ICAR-Central Soil Salinity Research
Meerut Cantt, Meerut-250 001 (UP) India Institute,
Karnal -132001, Haryana, India.
Dr B N Tripathi Dr Chandra Bhanu
Director Senior Scientist
National Research Centre on Equines, ICAR-Indian Institute of Farming System
Sirsa Road, Hisar - 125001 Haryana, India Research,
Modipuram, , Meerut-250110, U.P., India
Dr A.S. Panwar
Director Dr Ankita Kandpal
ICAR-Indian Institute of Farming System Scientist, Ag. Economics
Research, Social Science Section
Modipuram, , Meerut-250110, U.P., India ICAR-VPKAS,
Almora-263601, Uttarakhand, India
Dr Bharat Bhushan
Scientist Dr D.V. Singh,
Horticultural Crop Processing Division, Professor
ICAR-CIPHET Abohar Sardar Vallabhbhai Patel University of
Punjab-152116, India Agriculture &Technology,
Meerut-250110, India
Dr Anuj Bhatnagar Dr M Sarkar
Principal scientist Principal Scientist,
Sardar Vallabhbhai Patel University of Physiology Indian Veterinary Research
Agriculture &Technology, Institute,
Meerut-250110, India Izatnagar, Bareilly 243 122, U.P. India
Dr Deepa Samant
Dr Poonam Kashyap
Scientist, Horticulture (Fruit Science)
Senior Scientist
ICAR-IIHR- Central Horticulture
ICAR-Indian Institute of Farming System
Experiment Station,
Research, Modipuram,
Bhubaneswar-751019, Odisha, India
Meerut-250110, U.P., India
Dr Kamalpreet Kaur
Assistant Extension Specialist Dr M. Verma
Department of Extension Education ICAR-Central Institute for Research on
PAU Ludhiana, Punjab, India Goat,
Makhdoom, Farah, Mathura-281122, India
Dr Nihar Ranjan Sahoo
Senior Scientist Dr Pratibha Joshi
ICAR-Indian Veterinary Research Institute, Scientist,
Izatnagar, Bareilly, UP-243122 India FRMCATAT, IARI, New Delhi, India
Dr Kiran Bhgat
Scientist (Plant Physiology) Dr Madhu Bala
ICAR-DOGR, Pune, India Assistant Floriculturist
Department of Floriculturist landscaping,
Dr P K Rout PAU, Ludhiana, 141001, India
Principal Scientist
ICAR-Central Institute for Research on Dr R.K.Naresh
Goat, Professor,
Makhdoom, Farah, Mathura-281122, India Sardar Vallabhbhai Patel University of
Agriculture & Technology,
Dr Kirti Jalgaonkar Meerut-250110, U.P., India
Scientist
Horticultural Crop Processing Division, Dr Manjusha Verma
ICAR-CIPHET Abohar (Punjab)-152116 Principal Scientist,
Division of Genomic Resources,
Dr Parvati Sharma ICAR-NBPGR,
Research Associate New Delhi-110012, India.
National Research Centre on Equines,
Sirsa Road, Hisar - 125001 Haryana, India Dr RA Legha
Principal Scientist
Dr Lalit Arya National Research Centre on Equines,
Principal Scientist, Sirsa Road, Hisar - 125001 Haryana, India
Division of Genomic Resources,
ICAR-NBPGR, New Delhi-110012, India. Dr Mukesh Kumar Bairwa
Scientist ICAR-Central Institute of
Dr Peyush Punia Freshwater Aquaculture,
Principal Scientist, Kausalyaganga, Bhubaneswar-751 002,
ICAR-Indian Institute of Farming System India
Research, Modipuram, Meerut-250110,
U.P., India
Dr Rajbir Singh Dr Udita Chaudhary
Dean, Scientist
College of Veterinary Science DES & M Division,
SVPUAT, Modipuram, NDRI, Karnal -132001, Haryana, India.
Meerut-250 001 (UP) India
Dr Ruchi Tyagi
Dr Rajendra Singh Ph.D Scholar
Associate Professor Department of Bioscience and
Sardar Vallabhbhai Patel University of Biotechnology,
Agriculture &Technology, Banasthali University,
Meerut-250110, India Banasthali-304022, Rajasthan, India.

Dr Sunil Ail Dr Umesh Kumar

Scientist Ph.D Scholar
ICAR-Central Institute of Freshwater Sardar Vallabhbhai Patel University of
Aquaculture, Agriculture &Technology,
Kausalyaganga, Bhubaneswar-751 002, Meerut-250110, India
India
Dr Sanjay Kumar Singh
Dr Ravinder Kumar Principal Scientist and Head
Senior Scientist Division of Horticulture,
Cattle Genetics & Breeding Division IARI, NewDelhi, India
ICAR-Central Institute for Research on
Cattle, Dr Varij Nayan
Meerut Cantt, Meerut-250 001 (UP) India Senior Scientist (Animal Biochemistry),
Animal Physiology and Reproduction
Dr Sunil Kumar Division,
Scientist ICAR-Central Institute for Research on
ICAR-Indian Institute of Farming System Buffaloes,
Research, Modipuram, Hisar-125001, Haryana, India.
Meerut-250110, U.P., India
Dr Saroj K Swain,
Dr Renu Jethi Principal Scientist
Scientist, H.Sc Extension ICAR-Central Institute of Freshwater
ICAR-VPKAS, Aquaculture, Kausalyaganga,
Almora-263601, Uttarakhand Bhubaneswar-751 002, India

Dr Suresh Malik Dr Veena Yadav

Principal Scientist Scientist, KVK,
ICAR-Indian Institute of Farming System Sardar Vallabhbhai Patel University of
Research, Modipuram, Agriculture & Technology,
Meerut-250110, U.P., India Meerut-250110, U.P., India

Dr Ritesh Sharma Dr Sherry Rachel Jacob

Principal Scientist, BDF, Senior Scientist,
Sardar Vallabhbhai Patel University of Division of Germplasm Conservation,
Agriculture & Technology, ICAR-NBPGR, New Delhi
Meerut-250110, U.P., India
Dr Vijay Singh Meena Dr.Vivek
Scientist- Horticulture(Fruit Science) Associate Professor
Officer incharge, Sardar Vallabhbhai Patel University of
Issapur Farm, ICAR-NBPGR, Agriculture & Technology,
New Delhi – 110012, India Meerut-250110, U.P., India

Dr Srinivas Girjal Dr. Mukesh Kumar

Ph.D Scholar Associate professor
Collage of Agriculture Engineering and Sardar Vallabhbhai Patel University of
Technology, Agriculture & Technology,
MPUAT, Udaipur, Rajasthan, India Meerut-250110, U.P., India

Dr Vikrant Singh Chouhan Sh. Rajeev Ranjan,

Scientist (SS) Physiology AGPULE Organics, A-Startup Initiative,
Indian Veterinary Research Institute, Laxmi Nagar, Delhi 110092
Izatnagar, Bareilly 243 122, U.P. India
Dr. N. Ravisankar
Dr Yash Pal Principal Scientist,
Principal Scientist ICAR- Indian Institute of Farming Systems
National Research Centre on Equines, Research (IIFSR),
Sirsa Road, Hisar - 125001 Haryana, India Modipuram, Meerut - 250110, U.P. India

Dr. Vamsi Chandrasekhar Reddy Dr. P. K. Tomar,

Ph.D Scholar Scientific Officer
Sardar Vallabhbhai Patel University of Basmati Export Development Foundation,
Agriculture &Technology, Modipuram, Meerut - 250 110 U.P., India
Meerut-250110, India
Dr. M. Shamim,
Dr. Manoj Kumar Mahawar, Scientist,
Scientist ICAR- Indian Institute of Farming Systems
Horticultural Crop Processing Division, Research (IIFSR),
ICAR-CIPHET Abohar Modipuram, Meerut - 250110, U.P. India
Punjab-152116, India
 CONTENTS
Pages
1. Scope and Importance of Agri-Entrepreneurship 1 - 22
Manjusha Verma, Lalit Arya, Poonam Kashyap and
Ruchi Tyagi

2. Process of Entrepreneurship Development 23-39

Anil Kumar, Poonam Kashyap, A. K. Prusty and
A.S. Panwar

3. Start-up Programme for Agri Entrepreneurship

R.K.Naresh, Peyush Punia, Vivek and Sunil Kumar 41-53

4. Use of ICTs In Agricultural Entrepreneurship

55-68
Sunil Kumar, Udita Chaudhary, A.S. Panwar,
Kamlapreet Kaur, and N. Ravisankar

5. Development of Export Oriented Entrepreneurship

through Basmati Rice 69-78
Ritesh Sharma, Pramod Kumar Tomar and A.S. Panwar

6. Prospects of Seed Entrepreneurship In India-

An Overview 79-84
Arun Kumar MB and Sherry Rachel Jacob

7. Mushroom Production for Successful Enterprise

Development 85-96
Chandra Bhanu and Veena Yadav

8. Entrepreneurship Development through Protected

Horticulture 97-112
Poonam Kashyap, Kiran Bhagat, Sanjay Kumar Singh,
Deepa Samant, Vijay Singh Meena, A.S. Panwar and
A. K. Prusty

9. Entrepreneurship Development through Fruit and

Vegetable Processing
Manoj Kumar Mahawar, Bibwe Bhushan, Srinivas Girjal, 113-132
Kirti Jalgaonkar, Vijay Singh Meena and Bharat Bhushan
10 Commercialization of Floriculture for
133-152
Entrepreneurship
Mukesh Kumar, Madhu Bala, Kiran Bhagat and
Anant Kumar

11 Agri-Entrepreneurship Development through

Bovines
Varij Nayan and Anuradha Bhardwaj 153-164

12 Agri-Entrepreneurship Development through

Equines
Yash Pal, Parvati Sharma, Anuradha Bhardwaj, 165-176
RA Legha and BN Tripathi

13 Ornamental Aquaculture for Agri-Entrepreneurship

Development
Saroj K Swain, Sunil Ail1, Mukesh Kumar Bairwa,
177-200
A. K. Prusty and Peyush Punia

14 Establishment of Poultry as a Profitable Venture

S. Malik and Sunil Kumar 201-220

15 Yak Husbandry Based Farming System for High

Altitude Agri-Entrepreneurship Development 221-236
Brijesh Kumar, M Sarkar and Vikrant Singh Chouhan

16 Commercial Piggery for Entrepreneurship

Development
Nihar Ranjan Sahoo 237-248

17 Model Goat Farming for Entrepreneurship

Development
P K Rout, M. Verma and A. Kumar 249-268

18 Model Dairy Farming for Entrepreneurship

Development
Ravinder Kumar, Amit Kumar Verma, Rajbir Singh and 269-304
A.K. Das
19 Bee Keeping and Its Promotion for Entrepreneurship
D.V. Singh, Rajendra Singh, Anuj Bhatnagar,
305-318
Umesh Kumar and D. Vamsi Chandrasekhar Reddy

20 Organizational and Financial Support for Off-Farm

Entrepreneurship Development of Women
Renu Jethi, Pratibha Joshi, Ankita Kandpal and
319-336
Poonam Kashyap

21 Agricultural Sturtups and Beginners under

startup India 337-345
Rajeev Ranjan, N. Ravisankar, A. K. Pursty,
M. Shamim and A. S. Panwar
358