case study on agricultural marketing in india

Innovations in Agricultural Marketing in India: A Case Study of Supermarket in Punjab

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Linking small farmers with modern markets such as supermarkets has been identified as one of the several pathways ways to make their farming viable. In this context, the study explores emerging farm–firm linkages in fresh food supermarkets with a case study of Reliance Fresh in Punjab. Specifically, it analyses the impact on the farmers’ income, efficiency and their tendency to diversify to new high-value crops with a sample of 50 farmers each supplying to the supermarket and traditional markets. The supermarket procures vegetables through informal, verbal and non-written contracts from the small and marginal farmers. The supermarkets farmers benefitted on account of higher yield and higher price for the remaining produce sold in the local markets. They were also more efficient in the production of vegetables as compared to their counterparts. The preliminary evidences suggest that these alternative markets can play an active role in agricultural diversification in state like Punjab, which is facing severe agrarian crises. The study suggests that modern markets such as food supermarkets can only be effective if these procure through assured mechanism such as contract farming, besides extending the technical know-how, credit facilities, etc., to the farmers.

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Singla, N. (2017). Innovations in Agricultural Marketing in India: A Case Study of Supermarket in Punjab. In: Mani, G., Joshi, P., Ashok, M. (eds) Financing Agriculture Value Chains in India. India Studies in Business and Economics. Springer, Singapore. https://doi.org/10.1007/978-981-10-5957-5_6

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Challenges Faced by Small-Scale Farmers in Rural Agricultural Marketing: A Case Study in India

2023, Asian Journal of Applied Science and Technology (AJAST)

Agriculture serves as the primary means of subsistence for the great majority of people living in rural areas of developing countries like India. The agriculture industry was a major pillar of economic growth and stability both before and after the oil boom that occurred in the late 1950s. As a result of the fact that domestic production satisfied the large majority of the demand for agricultural products, it was not necessary to spend valuable foreign cash on the purchase of these things. In international organizations that deal with topics such as food safety, biodiversity, innovation, intellectual property protection, trade, and sustainable development, small-scale farmers have a disproportionately low level of representation. As a result, the objective of this research is to investigate the challenges that are faced by small-scale farmers who are located in rural areas while they are attempting to sell their produce. For the purpose of the study, a descriptive methodology and certain fundamental random sampling procedures were utilized, and fifty (50) small-scale farmers were chosen at random to participate. The researchers employed a questionnaire that did not include any open-ended questions so that they could get information from the subjects of the study. In order to make sense of the data that was gathered, conventional statistical methods such as frequency, percentage, and mean were applied. According to the research, one of the most significant obstacles that stands in the way of the success of female business owners in the marketing field is their lack of access to various financing resources. After this comes problems with transit, and after that comes a lack of functionality in the market's infrastructure. The findings of the research indicated that there was an inadequate quantity of data on agricultural marketing in the region that was under investigation. Farmers need to be knowledgeable about a variety of various aspects of agricultural marketing, such as where they can acquire financing, how to keep their commodities fresh, how to package them, and how the market is functioning. According to the findings of the study, governments had to establish transparent criteria for the sale of agricultural products in order to shield farmers from being taken advantage of or suffering financial losses. This would serve this purpose. In prosperous nations, there is typically a system of crop insurance in place to ensure that farmers will make at least some money off of their harvests. Infrastructure, which includes roads, communication networks, and electricity sources, particularly in underserved areas and rural towns, requires significant financial investment from national governments in order to be upgraded and expanded.

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ABSTRACT Access to markets is a vital success factor for any business. Agricultural marketing encompasses various steps from production planning, up to delivery of the commodity to the final consumer. Agricultural marketing and rural development are key elements for poverty alleviation in most of low-income countries whose livelihood depends on agriculture. However, stakeholders within the case study regions are exposed to agricultural marketing constraints in their quest for livelihoods. Inaccessible poor rural roads and inadequacy of communication facilities limit farmers' access to markets resulting into high farm produce wastes. Producers are not guaranteed of markets of their crops in all localities due to lack of competing buyers and regulatory institutions to oversee the entire process. Agricultural marketing is confronted with several challenges among which are unfavorable agricultural policy, tariff and nontariff barriers to trade and limited permits for small scale farmers to sell their produce outside of their local areas due to government bans. Governments of the case study countries have proved failure on agricultural marketing and price management by leaving almost all agricultural marketing activities under private middle men. This has created a wide gap between the prices received by the farmers and that paid by the consumer. While the farmers are not able to cover their costs of production, consumers are paying an abnormally high price for farm commodity. Public and private sectors need to form a strong acquaintance between them for promoting agricultural marketing by creating a direct contact network between the farmers and customers through local channels in villages to eliminate unnecessary brokerage and/or commission to the agricultural marketing chain for farmers' profit making., http://www.euroasiapub.org (An open access scholarly, peer-reviewed, interdisciplinary, monthly, and fully refereed journal)

Universal Journal of Accounting and Finance

Horizon Research Publishing(HRPUB) Kevin Nelson

Purpose: In this study, the main aim is to know farmers' problems in the agricultural sector. Food products are the primary good to ensure the quality of life and health. In the world, many countries are depending on the agricultural sector and farmers are the backbone of the economy. Design/methodology/approach: In this study, the main aim is to find what are the challenges faced by the farmers in Andhra Pradesh State. The present paper attempts to spell out some of the constraints like production, and marketing, and finance-related problems faced by the farmers. Primary data were collected from the farmers to investigate the aim and applied a convenient sample technique to collect opinions from the respondent. Findings: To find out production, marketing, and finance-related problems have been faced by the farmers. This study helps to encourage farmers to produce more goods and to increase productivity. Originality/value: It was concluded that a spellbinding report utilizing essential information would be fitting to explore the destinations. The essential information was gathered from the farmers by utilizing a meeting plan explicitly intended for the reason. Most extreme consideration was taken to give essential explanations in vernacular to empower the respondents to reply as precisely as conceivable with no uncertainty.

Journal of Economics and Sustainable Development, USA

Mohammad Muqeet Khan

Alexander Decker

Seshadripuram Journal of Social Sciences

Vijayakumar A B

Majority of the families in India opted agriculture is the preferred profession/employment for living, but today's former facing numerous issues and challenges. one of the major issue of agriculture is failed to estimate or fixation of prices for products due illiteracy, failed estimate demand, lack of awareness about technology, failed decide what to produce and when to produce, many formers are seasonal growers, many are depending on monsoon, lack of utilisation of resources, water problems, lack initiatives by governments and lack of awareness about government schemes, middlemen interference in sales etc.,. The main purpose of marketing information is to support in taking marketing decision and increase marketing efforts of farmers, but many farmers are failed to market their products at proper price. This study focussed on marketing issues of farmers and how aadhar linking of crops and digitalisation of production details, area wise detail of producers, demand information, fixation of prices in highly transparent manner, warehousing facilities, transportation facilities are help to the farmers come out from all these issues. Government role is very high in find a solution for all these issues, for example maintain transparency in APMC transactions. This study selected 50 farmers from Dodaaballapura taluk and structured questionnaire is employed, simple statistical tools like percentile and one way ANOVA is used.

John Vianney

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Khou Stephen

Northeast Indian comprises of eight states where 77 per cent of the working population in the region is engaged and dependent on agricultural operation. The purpose of the paper was to study and identify the challenges in agricultural production and marketing in northeastern states, India. The data in the paper was collected from 120 farmers from four states in the region and was analyze using SPSS. The study found absence of crop insurance; non-availability of bio-pesticide, Non-availability of information on organic farming etc. are categorized under severe problems in production for farmers. Lack of agricultural credit facilities, lack of market information, lack of warehousing and storage facilities, too many intermediaries resulting in high cost of goods and services, lack of farmers' organization etc. are found to be severe problems in marketing for farmers.

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How agtech is poised to transform India into a farming powerhouse

India’s agriculture industry is at a crossroads. When India became an independent nation 75 years ago, agriculture was the driver of the economy, contributing more than half of the nation’s GDP. Today, India is still one of the world’s largest and most diversified food producers, and agriculture—the source of more than 20 percent of India’s income—remains a central part of the economy.

About the authors

This article is a collaborative effort by Namrata Dubashi , David Fiocco , Avinash Goyal , Ayush Gupta, Nitika Nathani, and Abhik Tandon, representing views from McKinsey’s Agriculture Practice.

But there are significant problems holding back the nation’s untapped potential. If solved, a flourishing agriculture industry could both boost the economy and significantly improve farmer livelihoods and income. By 2030, agriculture could contribute around $600 billion 1 India’s turning point: An economic agenda to spur growth and jobs , McKinsey Global Institute, August 2020. to India’s GDP—an increase of 50 percent over its contribution in 2020. 2 Ministry of Statistics and Programme Implementation, Government of India, 2020. But to get there, India must unlock growth and productivity for the sector.

The key to expanding India’s transformation into a farming powerhouse is agricultural technology, or agtech. India lags behind developed farming nations in agtech. Simply put, India’s farmers are competing at a disadvantage: half lack basic farming equipment, three of every four farms are at risk of crop damage from pests and weather, and 50 percent of India’s farmers lack access to traditional financing sources. Those who can get credit often pay inflated interest of 10 to 25 percent above market rates.

In this article, we examine agtech’s potential, how it is already improving outcomes, and what investors are looking for as rural India embraces modern farming. Agtech can be a shot in the arm for India’s farmers, making them more profitable and boosting the contribution of agriculture to India’s economy.

Historically, the farmer was just one of the many stakeholders involved in a market that centered on mandis —the local markets where farmers sell their products at auction. The advent of digital technologies and the evolution of multiple agtechs have put the farmer right at the heart of the entire ecosystem. Solutions have begun to be more farmer-centric: each part of the value chain that is digitizing, be it finance, inputs (products needed to grow crops such as seeds, agrochemicals, and fertilizers), or advisory—are directly targeting the farmer.

Agtech is already boosting Indian agriculture

Between 2013 and 2020, the agtech landscape in India grew from less than 50 start-ups to more than 1,000, fueled by increased farmer awareness, rising internet penetration in rural India, and the need for greater efficiency in the agriculture sector. 3 Vaishnavi Dayalani, “The farming 3.0 opportunity: Inside India’s $24.1 bn agritech market,” Inc42, December 24, 2020. Moreover, India’s regulatory environment is gradually evolving to facilitate the growth of digital technologies in agriculture.

Agtech in India continues to ramp up—from core companies in the value chain using digital technologies like “super apps” to innovations by start-ups, or “agrifintechs,” and large technology companies.

Fully nurtured, the agtech ecosystem has the potential to propel Indian farmers’ incomes to grow by 25 to 35 percent.

Existing agriculture incumbents use digital technologies to either go direct to the farmer or to expand products and services across adjacencies. Suppliers are becoming buyers, advisers are adding finance—any combination is possible and happening:

• Providers of farming supplies such as agrochemicals, fertilizers, and seeds are using technology to create direct-to-farmer sales channels that bypass middlemen and retailers. For example, UPL (traditionally a core agrochemicals player) is providing mechanization services and agrochemicals to farmers through its nurture.farm digital platform. The company has also expanded to provide financing, advisory, and market services.
• Firms, including banks and nonbanks, primarily engaged in providing finance through farm and rural loans, are using technology to better understand the farmer, provide targeted products, and reduce loan risks. For example, the State Bank of India (SBI) developed the YONO Krishi app to meet farmers’ finance, inputs, and advisory needs.
• Companies that sell farm equipment have also started providing mechanization as a service to farmers. Mahindra, for example, offers a tractor rental service.
• Firms that operate in procurement, processing, or the selling of agricultural products have started to integrate backward into the supply chain and create market linkages for the farmer. For example, ITC, a core outputs player, used its e-Choupal network to expand direct-from-farm procurement over the past 20 years. It has now launched the ITCMAARS super app. Using a partnership approach, the app gives farmers access to modern tools, quality inputs at the right prices, and finance.

Fully nurtured, the agtech ecosystem has the potential to propel Indian farmers’ incomes to grow by 25 to 35 percent , and add $95 billion to the Indian economy, through reduction of input costs, enhanced productivity and price realization, cheaper credit, and alternative incomes (Exhibit 1). 4 McKinsey analysis.

The government’s role in enabling agtech

India’s government has also taken several policy steps and conducted pilots to foster technology and innovation in the agricultural sector:

• Easier digital reach through farmer collectivization. The government has promoted farmer–producer organizations (FPOs), granting $750 million to set up over 10,000 FPOs in the next five years. 5 “Budget 2020-21: Govt to announce Rs 10,000-crore 5-year plan for FPOs,” Financial Express , January 21, 2020. FPOs collectivize the otherwise fragmented farmer base, helping agtech companies (such as Samunnati) to easily access and scale up their business models.
• Development of the “agristack.” 6 Shreehari Paliath, “What is a digital AgriStack and why Indian farmers are opposed to it,” Business Standard , January 13, 2022. India is creating a unified database of agricultural data sets, which will be linked to farmers based on their land holdings. This will enable agtech companies to customize offerings and products based on farmers’ needs, which vary by land size, crop sown, and soil conditions.
• Digital soil-health cards. 7 “Soil health card scheme completes 5 years on 19-2-2020,” Government of India Ministry of Agriculture & Farmers Welfare, Press Information Bureau, February 17, 2020. A digital soil-health-card program entails mapping soil composition and quality at the farmer level. It could help agtech companies in India to promote precision-farming initiatives and tailor offerings for specific farmer groups.
• Digitally enabled direct benefit transfer in fertilizer sales. 8 Direct benefit transfer (DBT), Government of India Department of Fertilizers, accessed December 2022. This initiative directly transfers subsidies for fertilizers and other goods to the farmer. It authenticates the farmer’s identity at points of sale and through verification. It could significantly encourage the adoption of fertilizers and reduce leakages in transportation, maintaining affordability for smallholder farmers.
• National Agriculture Market (eNAM). 9 IBEF Blog , “ENAM – India’s nationwide electronic trading portal,” IBEF, February 24, 2022. This pan-India electronic online trading portal connects existing Agriculture Produce Market Committee (APMC) mandis , forming a unified national market for agricultural commodities that ensures better prices for farmers through the transparent auction process.
• Agricultural Accelerator Fund and digital public infrastructure. The government has recently announced a new fund for promoting the agtech ecosystem, potentially seeding new start-ups that may increase digital adoption and the range of digital solutions available to farmers. 10 “Budget 2023: Agriculture accelerator fund to increase productivity,” Mint , February 1, 2023. Additionally, the government announced its intent to build an open-source digital public infrastructure that will likely support agtechs with relevant information services across the value chain. 11 Mansi Verma, “Union Budget 2023: FM sows digital public infrastructure plan for agriculture,” Moneycontrol, February 1, 2023.

These initiatives are building an agtech ecosystem in the country, supporting farmers in areas where they need the most help.

What are investors looking for?

With government initiatives and the openness of farmers to tech adoption, agtechs are poised to engage with India’s farmers, but to be successful, they will need stable sources of funding and a vibrant, supportive ecosystem. 12 Salil Panchal, “Agritech investors: Not for the faint-hearted,” Forbes India , September 1, 2022.

Agriculture technology in India has flourished with the growing attention from venture capital (VC) in recent years. Accel and Sequoia Capital invested in companies such as Samunnati, Ninjacart, DeHaat, and Bijak. 13 AgFunder AgriFood Tech Investing Report - 2018 , AGFunder. During the past four years, agtechs in India have raised roughly $1.6 billion. VC firms invested more than $1.2 billion in 2022 alone through 114 deals, a 50 percent increase from 2021 and triple the investment made in 2020. The average deal size is growing, indicating that start-ups are maturing in this space despite an economic slowdown during the past two years (Exhibit 2). 14 PitchBook analysis, data extracted April 2022.

Of nine agtech categories, 90 percent of all VC funding was directed at five categories in 2022 (Exhibit 3): 15 PitchBook analysis, data extracted April 2022.

• Downstream agtechs:  These are primarily B2B or B2C platforms or brands to connect farmers with businesses or consumers. In 2022, such firms as Ninjacart, Absolute and Waycool raised more than $707 million in funding. Funding decisions are driven by the maturity of business models, the need for follow-up rounds of investments and highly accessible and monetizable opportunities across categories.
• End-to-end ecosystems: These are platforms that play across the value chain and have a significant presence in multiple segments, such as inputs and outputs. In 2022, such firms, for example, DeHaat, attracted more than $113 million in funding.
• Digital solutions and precision agtech: These are digital solutions or products which provide farmers with services such as advisory, precision farming and sensor-based solutions. In 2022, companies such as Cropin attracted more than $92 million in funding.
• Midstream agtechs: These are agtechs that help provide supply chain solutions that improve efficiencies in areas such as logistics and warehousing. In 2022, firms such as Arya attracted more than $80 million in funding.
• Agribiotech: These are agtechs that leverage biotechnology to create green and sustainable new products, or ingredients such as food additives. In 2022, firms like String Bio attracted more than $63 million in funding.

Unlike the rest of the world, where agricultural investment has centered on innovative foods—think Impossible Burgers or other plant-based foods—investment in India has centered on the basics: financing and technology to improve agriculture and farm practices and to avoid climate risks (such as droughts, pests, and flooding).

As a result, investors approach India with a different view. Our interviews with VC firms suggest that they focus on five factors when making decisions about new technologies: the size of the market, the breadth of offerings, traction with customers, an ability to scale, and the X factor (intangibles such as the learning curve it takes to use the new technologies efficiently).

Grow or die: Agtech success in India

Investors in Indian agtech are, or should be, asking some basic questions, including the following.

Does an agtech invest in multiple touchpoints and a breadth of offerings? Unlike e-commerce, agtechs get low transaction volumes for farmers but pay high acquisition costs, such as to get a farmer to install an app and try a product. This is complicated by the ceaseless efforts of multiple agtechs and incumbents to enter the space, lowering costs, and the farmers themselves being willing to experiment with multiple apps in the quest for most value.

To overcome this challenge, start-ups such as Gramophone, Samunnati, DeHaat, and more are offering more touchpoints and broadening their product portfolios to provide services across the value chain, from inputs and financing to advisory. Even platforms that start out with a single use case are expanding into adjacent parts of the value chain.

Does the agtech embrace a ‘phygital’ model? In rural India, both physical and digital infrastructure are important. Although 75 to 80 percent of farmer households have access to a smartphone, 16 McKinsey Farmer Survey 2021. most still prefer to have physical touchpoints for digital support such as tutorials or help with app installation. Agtechs such as Agrostar and DeHaat have field teams to make on-ground visits and to drive campaigns for greater penetration of their apps.

One way to support a customer: the ITC e-Choupal ecosystem has managed to bridge the gap in rural digital infrastructure through a network of central sanchalaks (overseers), who act as physical touchpoints for the ecosystem and on whom farmers continue to rely.

In-person contact with the farmer can happen in multiple ways. Field representatives are one option. Other examples include a fertilizer supplier’s presence in India’s local micromarkets or rural bank branches for agrifintechs.

Is the agtech charging for the right product or service? The right monetization model is crucial. Some firms are trying to monetize advisory services, but most farmers—not just Indian farmers—are reluctant to pay for advice. In general, advice is a gateway to business, not a business itself.

Is the agtech light on assets? Agtechs that rely less on investments in assets can scale up across geographies quickly. For example, Agribazaar had reached $2,250 million of gross merchandise value in fiscal year 2021, 17 “Agribazaar eyes 65% growth in merchandise value this fiscal,” Free Press Journal , August 16, 2021. with a fixed-asset base of around $2.5 million. 18 Agribazaar return-on-capital filings, fiscal year 2021. It did so by shifting the responsibility of storage, quality checks, and transport to buyers and sellers on the platform for the majority of transactions. 19 McKinsey analysis.

Agtechs that require investments in physical infrastructure or assets typically try to keep their models dependent on local entrepreneurs who make the investments in equipment and facilities. For example, DeHaat and Agrostar use village entrepreneurs to provide last-mile service and deliveries within villages, enabling them to aggregate demand and deliver larger volumes.

The potential for a bumper crop Indian agriculture

The investors and agtechs that navigate India’s unique hurdles may see boundless potential. The next three to five years will be critical for incumbents and new players.

It likely won’t become a winner-takes-all market. A few major players, especially those with strong supply chain linkages to the farm, could emerge as dominant players in this space. These companies could support a host of smaller, niche players that will in turn leverage the end-to-end platforms for growth.

Collaboration will be crucial. While agtechs might facilitate better decision making and replace manual farming practices like spraying, reducing dependence on retailers and mandis , incumbents remain important in the new ecosystem for R&D and the supply of chemicals and fertilizers.

There are successful platforms already emerging that offer farmers an umbrella of products and services to address multiple, critical pain points. These one-stop shop agri-ecosystems are also creating a physical backbone/supply chain—which makes it easier for incumbents and start-ups to access the fragmented farmer base.

Agtechs have a unique opportunity to become ideal partners for companies seeking market access. In this scenario, existing agriculture companies are creating value for the farmer by having more efficient and cost-effective access to the farmer versus traditional manpower-intensive setups. It’s a system that builds: the more agtechs know the farmer, the better products they can develop.

India’s farms have been putting food on the table for India and the world for decades. Digital technologies could enhance production at every step, from high-quality agriculture inputs to world-class agriculture outputs. This could help create sustainable growth for the Indian farmer, boost economic fortunes in rural areas in a flourishing ecosystem, and benefit the entire economy.

Namrata Dubashi is a partner in McKinsey’s Kolkata office, where Ayush Gupta is a consultant; David Fiocco is a partner in the Minneapolis office; Avinash Goyal is a senior partner in the Mumbai office, where Abhik Tandon is an associate partner; and Nitika Nathani is a partner in the Gurugram office.

This article was edited by David Weidner, a senior editor in the Bay Area office.

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  Journal of Agricultural Extension Journal / Journal of Agricultural Extension / Vol. 28 No. 2 (2024) / Articles (function() { function async_load(){ var s = document.createElement('script'); s.type = 'text/javascript'; s.async = true; var theUrl = 'https://www.journalquality.info/journalquality/ratings/2404-www-ajol-info-jae'; s.src = theUrl + ( theUrl.indexOf("?") >= 0 ? "&" : "?") + 'ref=' + encodeURIComponent(window.location.href); var embedder = document.getElementById('jpps-embedder-ajol-jae'); embedder.parentNode.insertBefore(s, embedder); } if (window.attachEvent) window.attachEvent('onload', async_load); else window.addEventListener('load', async_load, false); })();  

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Jeeranun Khermkhan, School of Agricultural Technology King Mongkut’s Institute of Technology Ladkrabang, Bangkok, Thailand 10520

Rangsima pimthong, school of agricultural technology king mongkut’s institute of technology ladkrabang, bangkok, thailand 10520, suneeporn suwanmaneepong, school of agricultural technology king mongkut’s institute of technology ladkrabang, bangkok, thailand 10520, harry jay m. cavite, sasin school of management chulalongkorn university, bangkok, thailand 10330, main article content, enhancing the marketing strategies for agri-shops in academic institutions in thailand, jeeranun khermkhan.

Rangsima Pimthong

Suneeporn suwanmaneepong, harry jay m. cavite.

This study addresses the marketing needs of agricultural product shops located at academic institutions, using the case of an academic institution in Bangkok, Thailand.  It examined the marketing mix factors influencing the purchase of safe agricultural products and develop an effective marketing strategy for Farm Chao Khun agricultural shop for different consumer groups. Data were collected through a structured questionnaire from 400 consumers, including students, faculty members, staff, and outsiders. In-depth interviews and focus group discussions were conducted with store stakeholders. The study revealed distinct consumer preferences for agricultural products among different groups: Staff favoured safe products in the evening, students prioritize affordable and ready-to-eat options, and outsiders show similarities with staff but prefer online purchases. The marketing mix factors influencing consumer decisions include product taste, suitable prices, and online publicity. The SWOT analysis highlights strengths in the institute's reputation, weaknesses in management and limited product variety, opportunities in the health-conscious market, and threats from COVID-19. The recommended marketing strategy involves expanding the product range, enhancing the online presence, improving product quality, and implementing a delivery system during the pandemic.

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