Hariyali Kisaan Bazaar--An Indian Case Study.

Hariyali Kisaan Bazaar

(A Unit of DCM Shriram Consolidated Limited, India)

Background – Indian Agriculture

With over two-thirds of Indian population engaged in agriculture, improvement in this sector is critical for overall prosperity. Improvement in agricultural and rural incomes has a tremendous multiplier effect over the rest of the economy.

India is also a key agricultural producer as it is among top 3 global producers of crops like wheat, rice, pulses, cotton, peanuts, fruits & vegetables.

However, since the last decade, the country faces critical bottlenecks in productivity growth,

·       Poor migration from lab-to-land

o      Multiple agencies involved in research, but lab results not getting replicated in the farmer field in large scale.

·       Land Degradation

o      Intensive cultivation over the years with little importance given to nutrient replacement

o      Practically, no use of organic and biological nutrient sources

·       Availability of quality Inputs

o      Unorganized retail of inputs leading to low control on quality of inputs being supplied.

Hariyali Kisaan Bazaars

DCM Shriram Consolidated Ltd. (DSCL), a leading diversified Indian corporate house with over 35 years of experience in the agri-input markets & first hand knowledge of Indian farmers, has pioneered an innovative business venture, Hariyali Kisaan Bazaar, which is a unique example of a commercially sustainable business models becoming the vehicle to bring about agricultural transformation and inclusive growth.

“Hariyali” means “Greenery” in Hindi signifying “Prosperity in Agriculture”. “Kisaan Bazaar” means “Farmer’s marketplace”.

Hariyali is a chain of centers coming across the rural landscape of the country aimed at triggering a qualitatative improvement in Indian agriculture. Each center spread over 3 to 4 acres of land, in hinterland locations, offers to farmers,

·       Last mile delivery of relevant Agri technology

o      Provide customised solutions to farmers.

o      Hand-holding farmers through implementation of new technology

o      Serve as a bridge between farmers & universities.

·       Agri-Inputs

o      Provide a complete range of good quality inputs,

·       Financial Services

o      Access to credit, insurance & banking services

·       Market Linkages

o      Access to new markets/ buyers for farmers produce.

·       Warehousing & Commodity exchanges

o      Providing farmers with quality warehousing facilities & access to commodity exchanges

·       Household Goods

o      Provides a range of good quality household goods for the farmer’s family.

Each centre caters to agricultural land of about 80000-90000 acres and impacts the life of approx. 15-20000 farming families.

Current status and plan

·       160 Hariyali outlets already operational across the country.

·       Rapid scale up plans - to set up 300 centres in the next 2 years.

Hariyali’s alignment with objectives of Inclusive growth

1.  Investment in Rural Infrastructure

·       Each centre, set up over 2-3 acres of land, provides need-based infrastructure to the farmers.

·       Facilities include a warehouse for agri-inputs or farm produce, an agri-advisory centre equipped with qualified agronomists, a veterinary centre with qualified vet doctors & availability of medicines,

·       an information centre with IT linkage to a team of scientists

·       availability of  diesel and petrol.

·       Addition of bank branches & ATMs to these centres will help in achieving the government’s objective of taking credit to the micro level.

2.  Improving farmer’s productivity & profitability

·       provide 24X7 technology support through a team of dedicated qualified agronomists

·       critical last mile delivery of agri advise to the farmers to ensure adoption of appropriate modern agri practices.

·       focus is on shifting farmers from subsistence  to technology led commercial farming.

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3.  Aggregation of Farm Produce

·       Fragmented land-holdings,  a major constraint in Indian farming.

·       Create the opportunity to aggregate farm produce & market it to buyers hitherto inaccessible to individual farmers.

4.  Access to information & Use of IT

·       Use of IT to provide online support on

o      latest technical advancements,

o       weather forecasts,

o      mandi (market) prices,

o      fair & transparent billing to farmers

·       Maintain extensive farmer databases with micro information about the farmers’ field to provide customized service to the farmers.

5.  A Sustainable model for Public-Private partnership

·       Hariyali initiative aimed at  enhancing the agricultural income of the farmer,

·       Commercial viability of the business model to ensure sustainability.

·       Case for collaboration of government efforts with the private sector, as ultimately it would put development on a self-sustaining path.