Entrepreneurship in Agri Input Sector: Problems and Prospects in North Gujarat

Abstract

Agri input sector in Indiamainly comprises of seeds, fertilizers, agrochemicals, farm machinery and irrigation water. The sector is very dynamic and fluctuating because the demand for agri inputs is highly dependent on unpredictable nature. Out of the total cultivable area of 161 mha, nearly 50%are rain-fed. The present study was taken up in North Gujarat which is largely a dry zone. Thanks to the recent advent of Narmada canal. The region consists of six districts with Rajasthan in the North, Kutchh and a part of the Pakistan border in the West. Farmers here are mainly engaged in field crops production and dairy farming. Major field crops grown in North Gujarat are Cotton, Castor, Pigeon-pea, Pearl Millet, Cumin, Tobacco, Maize, Fennel, Psyllium and Potato. A study was made with the dealers and distributors of Agri inputs in North Gujarat to know the problems and prospects of Agri inputs retail and distribution business. This paper highlights the challenges before agri input dealers and suggests possible solutions. The major problems encountered by the agri input dealers and distributors relate to the seasonal nature of agriculture, credit based business with the farmers and the vagaries of monsoon.