Karnataka J. Agric. Sci.

, 22(1) : (233-234) 2009

Problems of trained agripreuners under the scheme of agriclinics and agribusiness centers in starting
and running their agriventures - A study in south India*

In the post green revolution era, however public The high rate of interest and lack of hand holding support
extension finds itself unable to meet changing demands of from the training institutes, bankers resistance to finance and
farming community, tapped as it is in outdated, centralized, top- NABARD and other commercial banks will not give correct
deacon institutional arrangements and constrained in terms of picture about the rate of interest, subsidy and collateral security
financial and human resources, lacking in skill and capacities. were the major problems faced by 83, 72, 71 and 70 agripreuners
In this connection Ministry of finance Government of India which accounts to 93.25 per cent, 80.89 per cent, 79.77 per cent
announced a scheme of “Agriclinics and Agribusiness Centers” and 78.65 per cent respectively. The other problems faced by
on February 28, 2001. This scheme is being implemented jointly these agripreuners in establishing their agri venture were bankers
by NABARD, MANAGE and SFAC since from 9th April, 2002 not responding to the proposals (77.52%), many banks do not
by launching this programme formally. After launching the know about the scheme of AC and ABCs (75.28%), high margin
scheme of AC and ABCs there are 67 AC and ABCs training money (68.53%), lack of support from the family (67.41%) and
centers are continuously providing the training to agricultural fear of collection of money from the farmers (66.29%). Problems
graduates on selected identified projects, but after getting the like lack of business and field experience, fear of sales, long
training no much progress was seen from the trained procedures involved in getting the bank loans, huge risk
agripreneurs hence an attempt was made to study the problems involved, dry land ares business runs only in seasons and
faced by trained agripreneurs in establishing and running their employment in private/government sectors were responded by
agri ventures. 64, 4, 61, 79, 59, 58, 56 and 8 per cent of the agripreuners
respectively.
Out of 14 training centres in south India, 9 training
centers were selected randomly by following proportionate With respect to the problems faced by the agripreuners
sampling procedure. Hence, three centers from Andhra Pradesh, who have established their agri ventures, heavy competition
two centers from Karnataka, one center from Kerala and three from well established and other old dealers in the business was
centers from Tamil Nadu were selected. Fifteen trained the major problem faced by 39 agripreuners (85%) followed by
agripreneurs were selected from each training institute to collect farmers ask the products on credit basis, non-cooperation of the
the information on problems faced by them in establishing and farmers in repaying their credit and insufficient cash in hand
running their agriventures. Their suggestions on successful while starting the business as responded by 36, 34, and 31
operation of AC and ABCs scheme was also collected from a agripreuners which accounts for 78 per cent, 73 per cent and 67
total sample of 180 trained agripreneurs in South India. per cent respectively. The other problems faced by them were
illiteracy and lack of knowledge of farmers (54%), Lack of support
To study the problems faced by the trained agripreuners from the family (46%), marketing and infrastructure (43%), low
in establishing and running their agri venture, the data was investment (41%), no direct dealership from the company (39%)
collected from 99 agripreuners, who have not started their agri and non-possession of land for demonstration (6%).
venture. Similarly, the data on problems faced by agripreuners
in running their agriventure was collected from 46 trained The most important suggestion given by the trained
agripreuners, who have already established their agri venture. agripreuners were to link the training institute with financial
Table 1. Problems faced by the trained agricultural graduates in establishing their agriclinics and agribusiness centers
Sl.No. Particulars No. of respondents Percentage
1. High rate of interest and lack of subsidy component in the scheme 83 93.25
2. Lack of handholding support from the training institutions 72 80.89
3. Bankers hesitate to finance 71 79.77
4. NABARD and commercial banks will not give correct picture about the rate 70 78.65
of interest, subsidy and collateral security
5. Banks not responding to the proposals 69 77.52
6. Many banks do not know about the scheme of AC and ABCs 67 75.28
7. Lac of collateral security 65 73.03
8. High margin money (25% of the total cost have to be borne by agriprenerus 61 68.53
9. Lack of support from family 60 67.41
10. Fear of collection of money from the farmers 59 66.29
11. Lack of support from family 60 67.41
12. Fear of sales 55 61.79
13. A lot of procedure is involved in getting bank loans 53 59.55
14. Huge risk involved 53 58.42
15. Due to employment in private / public sectors 7 7.86

*Part of Ph D. thesis submitted by the senior author to the University of Agricultural Sciences, Dharwad-580 005, India
233
Problems of trained .................
Table 2. Problems faced by the sample agripreuners in running their agriventure
Sl..No. Particulars
1. Heavy competition from well established and other old dealers in business
2. Farmers asking the products on credit basis
3. Non cooperation of the farmers
4. Insufficient cash in had while starting the business
5. Illiteracy and lack of knowledge of the farmers
6. Average support from family (risk involved and new activity
7. Marketing and infrastructure
8. Low investment
9. No direct dealership from company
10. Non possession of land for demonstration
institutions for loan snction followed by banks should follow
the guidelines of RBI, subsidy component should be included
in the scheme, AC and ABCs should be treated on par
withgovernment agriclinics (Raita samparka Kendra) in
distribution of seeds and other inputs to the farmers on
subsidized rates, as these things were suggested by 91, 67 and
65 respondents which amounts to 67, 49 and 48 per cent
respectively. The other suggestions given by them were to
concentrate more towards providing training on need based
economically viable projects by putting trainees under inplant
training for 15-20 days. Training has to be provided only to the
interested candidates, training should not be given free of cost
and not to encourage NGOs and private training institutes as
they are not capable to train efficiently, which was suggested
by 63, 57, 56 and 53 agripreuners and that accounts to 46, 42, 41
and 39 per cent respectively. Government should promote
agricultural graduates to start agriclinic at every gram panchayat
level, encourage to allocate both central and state government
farm lands (which are under loss due to improper management
due to lack of resources) to agripreuners on contract basis,
Department of Agricultural Marketing,
Co-operation and Agribusiness Managment
University of Agricultural Sciences, Dharwad - 580005, India
(Received : December, 2006)
References
Anonymous, 2003, Successful initiatives from women agripreneurs –
Agriclinic and agripreneurs – Agriclinic and agribusiness center.
Indian Agripreneurs, 1 : 7.
Anonymous, 2003a, Fourth National Workshop of nodel officers. Indian
Agripreneurs, 1:1.
Anonymous, 2003b, Hand holding fecility by training centres.
Biodynamic farming green cross society. Indian Agripreuners,
1:5.
Chandra Shekhara, P., 2003, Third wave in Indian agriculture :
Introduction to agriclinics and agribusiness centers scheme.
MANAGE Ext. Res. Rev., January-June, 2003, pp. 10-20.
234
No. of respondents Percentage
39 84.78
36 78.26
34 73.91
31 67.39
25 54.34
21 45.65
20 43.47
19 41.30
18 39.13
3 6.52
increase the duration of the training programme, frequent
interactions, better coordination and get together of agripreuners
at least quarterly once and scheme should be put to final year
B.Sc.(Agri) RAWE programme which fecilitates them to learn
management skills were some other suggestions made by the
trained agripreuners for the successful operation of AC and
ABCs in the study area.
High rate of interest, lack of subsidy component and
lack of hand holding support from the training institutes were
the major problems faced by the agripreuners in establishing
their agri ventures. Whereas, heavy competition from the well
established dealers, non-cooperation of the farmers in repaying
the credits and insufficient cash in hand while starting the
business are the major problems in running their agri venture
were the major problems faced by the agripreuners who have
already established their agri ventures. The major suggestions
given by the trained agripreuners includes linking the financial
institutions with training institutions, banks should follow the
guidelines of RBI and private agriclinics should be treated on
par with the government agriclinics especially in distribution of
seeds and other inputs on subsidy basis.
RAJASHEKHAR KARJAGI
H. S. S. KHAN
H. S. VIJAYKUMAR
L. B. KUNNAL
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