The enterprise mission is to solve social problems related to low or no farmer income, health problems relating to excessive fertilizer and pesticide usage, and environmental damage from inorganic farming. Organic farming and semi mechanization improves soil fertility, reduces input costs, reduces water intake and increases farm output. Plans are also in place to substantially increase price realization for the farmers.
Awakening the rural population to the benefits of holistic living by showing tangible results with financial rewards coming off their land and sweat is not an ideal but an achievable outcome. Landless labor and cluster development are part of this solution.
Five point solution:
1. Currently organic farming is diffused and unorganized. For the first time we want to mobilize organic farming in a cluster of villages and conduct operations in an organized format.
2. Potent liquid organic fertilizers are rare and are mostly produced for own use without proper controls and measurement of quality. The enterprise sets up a factory and produces in high volume with quality controls and individual batch certification.
3. Enterprise guarantees a minimum of 30% input cost savings in writing to farmers while organizing a Farmer Service Center to answer all farmer questions as well as soil testing and counseling. It also provides Change Agents in the cluster to help farmer clients on site. Semi mechanization assistance will be given to further drive down water and input costs.
4. The enterprise delivers “experience” to farmers by providing certified liquid fertilizers on site and spray according to a manual.
5. Company provides assistance to store produce and sell at advantageous price using the collective clout to substantially improve price realization.
The farmer community in India has become cynical and distraught over time. Increased input costs, unpredictable output and distress sale of produce to settle debts has become the norm.
As part of the solution, we guarantee substantial reduction in input costs, soil test, personal counseling and alleviate distress sale.
Farmer visiting the factory is greeted by a Change Agent followed by first hand demo of the production process, an interaction with Farmer Service Center, and a detailed explanation of the value proposition in a contract where the product is delivered as an experience with very favorable terms. Farmer no longer has to buy and transport fertilizers, nor does he need to worry about application of the liquid fertilizers. For a flat fee the company delivers quality certified fertilizers (PG and AJ) on time to the farmer in its own truck and its agent sprays PG (foliar spray) based on schedule under the watchful eye of Change Agent. Any deficiency will be remedied by the company free of cost. In addition, company takes responsibility for cleaning and safekeeping the fertilizer containers in its premises.
Farmer is given instructions to apply Amrutha Jalam (AJ) which enriches soil and makes humus. Farmer also gets substantial help at no cost from the company to further reduce labor costs by mechanizing the transplantation and harvesting steps.
Farmer not only benefits from 30% reduction in input costs directly coming off company fertilizers replacing conventional fertilizers, but further benefits from partial mechanization of farming replacing expensive labor as well as realizing better price with storage and collective bargaining using company services. Such a transparent and economically beneficial process cements the deal.
Chemical fertilizers, pesticides and herbicides dealers are the product competitors. However, there are no process competitors. The value proposition is both fertilizers and specialized service. Farmers have no end to end providers. Few NGOs provide partial solutions but none provide farmer centric end to end services at the price point we offer.
Fertilizer industry is organized and financially strong but we don’t envision any immediate threat because we are too small to worry about. It becomes an impediment, perhaps by the third year. But by then the company will have demonstrated the efficacy by adding more better organized mechanization and marketing solutions to substantially increase traction with the farmers.
Heavy government subsidies for fertilizers are very burdensome and replacement of inorganic fertilizers with eco friendly organic fertilizers will find otherwise unlikely friend in the government.
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