Rani Channama University Belagavi.

B.L.D.E.A's
A. S. Patil College of Commerce (Autonomous),
(Affiliated to Rani Channamma University, Belagavi)
MBA Programme,
New Campus, B.M.Patil Road, Vijayapura-586103

A report submitted in the partial fulfillment of the requirement for the award of
MASTER OF BUSINESS ADMINISTRATION
PROJECT REPORT ON

“ AGRO SEEDS”
Submitted by
SAMIULLA JAMADAR
MBA19030
JAYRAJ SALUNKE
MBA19013
AKSHAY PASHCHAPUR
MBA19005
SUMA KORGAL
MBA19040
SANGEETA KUMBARKAR
MBA19031
POOJA KULKARNI
MBA19020
SHRUTI NANDIKOLMATH
MBA19035
KAVERI HADPAD
MBA19015
 DECLARATION

We the undersigned students of MBA 3 rd semester declare that the project entitled

“ AGRO SEEDS” a genuine work carried out by us and is submitted

in partial fulfilment of the requirement of MASTEROF BUSINESS ADMINISTRATION,
of Rani Channamma University, Belagavi from B.L.D.E.A’s A.S.PATIL College Of
Commerce ( Autonomous ) MBA Programme, Vijayapura. This report has not been
submitted by us or any other person to any other University or Institution for a degree or
diploma. This is our own and original work.
 ACKNOWLEDGEMENT

Through this acknowledgement we express our sincere gratitude towards all those
people who helped us in this project, which has been a learning experience. We would
like to express our heartily thanks to PROF SANTOSH BIRADAR for his efforts in
coordinating with our work and guiding in right direction. It would be injustice to proceed
without acknowledging those vital supports I received from our beloved classmates and
friends, without whom we would have been half done. We also use this space to offer
our sincere love to my parents and all others who had been there, helping us walk
through this work.
SL. NO CONTENT PAGE
NUMBER
CHAPTER  EXCUTIVE SUMMERY 01
01  INTRODUCTION 1-04
 OBJECTIVES OF PROJECT 05
 ESSENTIAL REQUIREMENTS OF 05-07
SUCCESS OF SEED COMPANY
 SEED PROCESSING PLANT AND 08-19
BUILDING 20-25
 FINANCIAL ANALYSIS 26-28
 MARKETING ANALYSIS

CHAPTER  SWOT ANALYSIS 29-34

02  VISION, MISSION, OBJECTIVES 35-36
 PEST ANALYSIS 37-39
 LICENCE AND PERMISSION 39-42

CHAPTER  MARKET SITUATION 43-45

03  MARKETING STRATEGIES 46-48
 FINANCE STRATEGY 49-52
 HUMAN RESOURCE STRATEGY 53-55
 PRODUCTION STRATEGY 56-59

CHAPTER  CORPORATE STRATEGIES 60

04  BUSINESS LEVEL STRATEGIES 61-62
 FUNCTIONAL LEVEL STRATEGIES 63-68
 MARKET GROWING STRATEGIES 69-74
 COMPETITOR’S STRATEGIES 75-78
 PROJECT SCOPE MANAGEMENT 79-81

CHAPTER EVALUATION PROCESS 82-100

05
CHAPTER  STAGES OF INDUSTRY GROWTH 101-103
06  CONCLUCTION 104-105
 Agro Seeds

CHAPTER 1

EXECUTIVE SUMMARY
A billion people go to bed hungry every day and two billion suffer from malnutrition.
The global population is expected to grow by a further two billion in the coming
decades, precisely in those regions that are currently considered food insecure. In
these regions where agricultural systems are dominated by smallholder farmers,
access to the key inputs to produce more and better food is often lacking
Our aim is to provide best quality seeds of improved varieties to enabled farmers in
advanced agricultural systems to triple their yields. What is the seed industry,
strategically placed as it is at the start of the food value chain, doing to help
smallholder farmers in food insecure regions to achieve similar results.
Providing best quality seeds to the famers is our main motive and strategies which
we have used to grow in market and tackle the competitors has been presented in
the report. And this report says about the machineries required to start the agro seed
industry and their process to finish the final product. We have discussed financial
analysis of the overall project.

INTRODUCTION
Seed has been an important agricultural commodity since the first crop plant
was domesticated by pre-historic man. For thousands of years, man cleaned
seed of his food crops by winnowing. This is still an important process, but it
isno longer adequate to supply the kind of seed needed by farmer.

Seed processing is a vital part of the seed production needed to move the
improved genetic materials of the plant breeder into commercial channels for
feeding the rapidly expanding world population. The farmer must get the
quality seed that is free from all undesired materials because farmer’s entire
crop depends on it.

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 Agro Seeds

Seed can seldom be planted in the condition in which it comes from the
growers. In fact, many seed lots contain weed or crop seed or inert material
that make them unfit for sale without processing. Crop seed also frequently
have stems, awns, clusters or other structures, which prevent from flowing
through the drill freely.

Seed processing is that segment of the seed industry responsible for

upgrading seed, improving planting condition of seed, and applying chemical
protestants’ to the seed.

Advantages of seed processing:

1. Make possible more uniform planting rates by proper sizing

2. Improve seed marketing by improving seed quality

3. Prevent spread of weed seed

4. Prevent crops from disease by applying chemical protestants

5. Reduces seed losses by drying

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 Agro Seeds

6. Facilitate uniform marketing by providing storage from harvest time

untilthe seed is needed for planting.

Raw seed

Inert material Common weed seed

Noxious weed Other crop seed

seed

Deteriorated seed Other variety seed

Damaged seed Off size seed

Cleaned, Graded, Treated,

Packed, Tested seed

Undesirable materials removed during processing of seed

An important factor to consider is the moisture content of the seed prior to

processing. Seed with moisture content above 15% are subject to excessive
damage in the processing line. In this case natural or artificial drying may be
necessary.

Physical characteristics used to separate seed include size, length, weight,

shape, surface texture, color, affinity for liquids and electrical conductivity.

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 Agro Seeds

Seed processing can broadly be divided into various steps. As the seed is
received into the processing plant, it goes either directly into the cleaning
process or into storage to wait processing. Drying may be necessary. As
processing begins, the first phase (conditioning and pre- cleaning) consists of
scalping, debarring, shelling or any other operation necessary to make the
seed flow easily. The second phase (cleaning and grading) includes the
removal of inert materials, weed seed, other crop seed, and broken seed that
are larger or smaller than the crop seed and obtain the seed mass in the
uniform size range of perforations of top and bottom screen.

After the desired purity is obtained, seed enters the final processing phase of
separation based on specific characteristics like length, weight etc and
treating and packaging. Processed seed is stored for later sale.

Conditioning & Separating

Receiving Cleaning
pre-cleaning and upgrading

Bulk storage

Treating and bagging

Storage

Basic flow and essential steps in seed

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 Agro Seeds

Objective of Project

The State Government has accorded high priority to the up liftmen of rural
economy through the development of agricultural sector. Seed being vital
input to agriculture, continuous efforts are being made to ensure availability of
quality seeds to farmers in order to sustain the agricultural development.

In the present situation the demand of quality seeds is so high that the
O.S.S.C. or any government agency alone cannot meet the demand ofquality
seeds, which would be required to fill by the private seed projects.

In view of above, the project has been formulated with the objective to
produce quality seed of jawar, ghevun, peanut and bajra through scientific
methods and adopting appropriate processing.

Essential Requirements for success of Seed Company

Following are essential requirements for setting up and successful
operation of a seed company:

I. Farm
II. Processing plant
III. Electricity
IV. Buildings
V. Raw materials
VI. Man power
VII. Marketing

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 Agro Seeds

Farm
Farm is needed for undertaking production of certified seeds. In Indian
conditions, contract growing of seed has become fairly acceptable and
venture being profitable; farmers are coming forward to undertake seed
production for reliable companies.

As has already been previously indicated, the proposed locality is having

excellent irrigation facility and farmers are already aware of seed
production programs of OSSC, there is no problem in identifying
experienced and progressive farmers willing to undertake seed production
for the company. In the initial year, response has been very encouraging.

Processing plant
Seed processing plant will be equipped with all the machines needed for
successful cleaning, grading operations. Similarly, seed storage is needed
to store the seed during the period from receipt of seed at the plant till it is
supplied to the dealer/farmer for sale.

Cleaner is the basic machine in a seed processing plant. Capacity of plant

is accordingly known by the capacity of cleaners. The capacity of seed
cleaners is specified in terms of wheat seed. While handling paddy, the
capacity of machine reduces to half and hence the company would plan to
establish a plant with sufficient capacity to process double the quantity of
planned paddy production within the available processing period.

Considering the seed production plan, the company requires seed

processing plant of 2 ton per hour capacity to handle present requirements
as well as to handle future processing needs.

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 Agro Seeds

Electricity
Electricity is available from Orissa state electricity board. However, standby
DG set would also be installed to take care of processing need in the event
of power failure.
Buildings
Seed processing plant building, seed stores, reject store and office
accommodation is needed to perform the processing and storage works
successfully.
Raw material
Raw material for the certified seed production programme is foundation
seed, which would be available from KVKs/University/SSC/NSC without
any problem.

Other raw materials, like certification and packing material is available in

the market, which would be purchased with printing in the name of the
company.

Manpower
Adequate labor force is available around the area to work on the
processing plant. This would rather be an opportunity for employment to
rural youth in this backward rural area. Expert support will be available from
OSSCA and other state agencies. Company also plans to employ
agricultural graduate for internal quality checks.
Marketing
Company is using its own outlet for sale. Experiences of previous year
indicate that company was able to sale about 40% of produce through own
sale counter. Subsequent queries from farmers are encouraging. Rest of
the material was sold through dealer or to NSC. Company plans to increase
its dealer’s network throughout the locality and also have suitable tie-ups
with state/central agencies for sale of seed and anticipates that there would
be no problem with sale of seeds.

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 Agro Seeds

Seed Processing Plant and Buildings

Seed, as a component of the production phase in the grain industry can be

considered as a mini industry that requires integration of production
processing; storage, and marketing. Although only a small part of the total
system, the seed has a strong influence on the viability of the industry,
because as the most basic input, the seed sets the upper limits of
productivity,product quality, and price.

Seed processing plant is designed based on the characteristics of seed

grain and the impurities present in it, which need to be separated. Capacity
of plant is known by the capacity of the seed cleaner which is the basic
machine in the seed processing plant. Other machines, which work on the
principle of separating the material, based on difference in characteristics of
good seed and impurities are included in the plant. Capacity of such
machines are kept matching with that of cleaner to have effective utilization.
Processing Machines
Brief descriptions of the processing machines used in a seed processing
plantare given hereunder.
Scalper
Paddy seed contains contaminants of various kinds as it comes into the
processing plant especially if it has not been harvested and threshed
mechanically. To get the seed into condition to flow easily through the
processing operations, to improve capacity and separating precision during
processing, and to prevent loss of quality, seed is usually prepared for
processing by sending them through one or more special machines or
processes. A scalper can be used to rough clean seed when trash content
is high.

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 Agro Seeds

Air screen cleaner

The air screen cleaner is the basic machine in almost all seed processing
plants. The air screen cleaner uses three cleaning principles via aspiration,
scalping and grading. A common air screen cleaner for processing seed
uses two air blasts and two screens. The first air system removes dust and
light chaff before the seed reaches the first screen. The first screen
allows the good seed to drop onto the second screen. The large foreign
material rides over the first screen and is discarded. The second screen is a
grading screen.
Specific gravity separator
Seed of same size and general shape can often be separated because
they differ in specific gravity. This difference is very useful in removing light
immature seed or heavy sand and rocks to improve the purity and
germination of crop seed.
Indented cylinder
Seed of the same width and thickness can sometimes be separated by
taking advantages of difference of length. Indented cylinder can do very
precise separation by using length difference. The indented cylinder
separator is a rotating almost horizontal cylinder with a movable horizontal
separating trough mounted inside it. Thousand of half round indents line the
inside surface of cylinder.
Elevator
Single leg bucket elevator consisting of receiving hopper, boot, bucket, belt,
boot pulley, leg, head pulley, motor, drive and discharge spout will be used
forconveying seed from one machine to another machine. It will lift the seed
from the ground vertically upward and discharge it from top to the different
machines. This type of elevating machines requires less power and floor
area.

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 Agro Seeds

Design Criteria of Processing Machines

Generally the manufacturers specify capacities of processing equipments
in terms of wheat only. Capacity of seed processing equipment and
machinery in terms of paddy has been assumed to be 50% as compared to
wheat. Working efficiency of processing equipment has been assumed to
be 80% of the rated through put capacity.

Seed processing is a seasonal work. Seed requires drying, cleaning and

packaging in an accelerated and continuous manner so as to complete
processing load within the limited period available to enable seed
maintaining its viability. Moisture content of the harvest at the time of
receipt is usually 9 to 12% (wb) during both jawar and peanut seasons and
hence will not require drying facilities.

Maximum seed volume to be handled at the proposed seed processing

complex during the jawar will be 3120 quintals whereas during peanut
season will be of the order of 3680 quintal as per proposed production plan
given in Table 4. Hence, the cleaning cum grading capacity of the
processing plant will be determined on the basis of 3680 quintals load.
This amount of seed is tobe processed during the period of 20 days. Seed
processing during both the seasons will be conducted in 2 shifts per day
basis with processing plant operating 16 hours a day.

Based on above assumptions, processing load and period available for

processing, average seed cleaning-grading capacity (on paddy basis)
works out to be 2 tones per hour. The details of various processing
machines required in the project are given in Table 5.

Electrical energy will be made available by state electricity board. One

standby diesel generating set of 45 kVA rating has been proposed for
meeting exigencies in the event of power shedding/failure. The estimated
cost is given in Table 6.

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 Agro Seeds

Processing machines required in the seed processing plant

S. Name of machines Capacity Qty. Rate/ Amount,
No. Unit, Rs Rs in
in lakhs lakhs
1. Pre-cleaner 2 TPH 1 No. 2.00 1.50
3. Seed Cleaner 2 TPH 1 No. 2.10 1.60
4. Indent Cylinder 2 TPH 1 No. 1.30 1.30
5. Specific gravity separator 2 TPH 1 No. 0.50 1.50
6. Elevator up to 5 m height 2 TPH 4 No. 0.40 1.60
8. Vacuum cleaner 1 No. 0.10 0.10
9. Electronic moisture meter - 1 No. 0.20 0.20
(Wet type)
10. Bag closer heavy duty Nil 2 No. 0.04 0.08
11. Weighing machine 100 kg 1 No. 0.40 0.40
300 kg 1 No. 0.50 0.50
12. Diesel generating set 45 KVA 1 No. 2.50 2.50
Total (X) 11.28
13. Spares parts for 3 Years @ 0.564
5% of amount (X)
14. Installation, testing, 1.128
commissioning of
Machines @ 10% of
amount (X)
15. Laboratory equipments like 1.75
germinator, hot air oven,
weighing balance, divider
etc
16. Sum of S. No. 1 to 15 14.722
17. Contingencies @ 3% 0.44
Grand Total = 15.162 15.20

Estimated power requirement for the seed processing

complex
S. No. Machine Power requirement, kW
1. Pre-cleaner 5.0
2. Cleaner cum grader 5.0
3. Indented cylinder 2.0
4. Specific gravity separator 5.0
5. Elevators 8.0
6. Bag closer 0.2
7. Lighting load 3.0
Total 28.2

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 Agro Seeds

Layout and Process Flow Operations

Process flow operation enables processing of seed through suitable

machines. Elevators are provided with bypassing arrangements to bypass
certain machines, if use of any machine is not needed in subsequent
operation in particular seed lot. For example, all the lots may not need use
of indented cylinder grader or specific gravity separator and hence in such
case the elevator direct the seed to the next process by bypassing these
units.

Layout of the plant will be made in a way to ensure minimum travel both
vertical and horizontal to avoid injury to seed. Layout plan and process flow
chart are given in blow Figs.

E1 E2 E3 E4 E1, E2, E3, E4 are elevators

Pre-cleaner Grader Indented Specific

cylinder Gravity
Separator

Raw
seed

Weighing,
bagging and
packing

Layout of seed processing machines

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 Agro Seeds

As shown in above Fig, raw seed will be fed to the pre-cleaner by elevator
(E1). This machine will remove large size undesired materials from the
seed. The partially cleaned seed will be fed to the cleaner cum grader with
elevator (E2).

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 Agro Seeds

Here, the small undersized materials including undersized seeds will be

separated on the basis of size difference and weight difference. The cleaned and
sized seed will be fed to the indented cylinder by elevator (E3) whereby the
broken and short seeds will be separated. The graded seed will be fed to the
specific gravity separator by elevator (E4) for removing light seed. If it is not
required then it will be bypassed. The processed seed will be packed, weighed
and stitched with the help of weighing and stitching machine.

Raw seed

Pre-cleaner Large impurities

Small impurities like

Seed cleaner chaff, dust

Specific gravity
Indented cylinder Broken grain
separator

Packaging and Storage of graded seed

Process flow chart of seed processing

Packaging
After processing, the seed is packed. Bagging is usually the slowest and most
costly operation in a seed processing plant. Bagging requires filling the bag to an
exact weight, closing and labelling the bag. These operations are done either with
hand or with manually operated machines, like weighing.

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 Agro Seeds

Bagger-weighers are simple machines and are very accurate, easy to adjust and
can fill 5 to 6 or more bags per minute. Bag-sewing machines are precision, high-
speed machines.

The label is attached to the seed bag, or it is printed directly on to the

container or bag. The label contains all-important information about the seed.
Complete processing records need to be maintained to trace the seed from the
time it is received at the plant until it is sold with full details of operations. A
processing plant record system include following records:
i. Receiving
ii. Drying/storage
iii. Processing, treating and packaging
iv. Testing
v. Storage
vi. Inventory
vii. Sale

Seed storage
Good seed storage is an important phase of processing and is essential to
successful seed marketing. Proper storage preserves seed viability, from harvest
to sale, and protects the producer, the processor and the user.

The storage is provided for seed from the time of harvest until planting time.
Storage is provided for seed that may be carried over until the planting season in
the next or a subsequent year.

The rate of deterioration of crop seed in storage increases as seed moisture

content increases. Mature seeds are hygroscopic and hence their moisture
contents vary with the relative humidity of the atmosphere. Moisture absorption
or desorption of seed is a relatively slow process. Moisture content and
temperature are important factors in seed storage. Dry cool conditions are best
for seed storage.

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Seed Processing Plant Building Layout

Seed processing plant building will comprise of following components:

1. Receiving-cum-drying platform

2. Processing area

3. Auxiliary building

Receiving-cum-drying platform
An open platform of size 10m x 10m will be provided. The platform will be having
a plinth of 0.9 m above the ground level. This area will be utilized to receive the
raw seed and to sundry small lots of crop seeds. This area can also be utilized for
storage of seeds on wooden pallets. The platform will be connected to processing
shed through a rolling shutter.

Processing area
The processing area will be situated between the shed and ventilated storage
building. The hall will be connected to ventilated flat stores through a covered
gallery for easy movement of processed and packaged seed to seed stores. The
hall will have a big rolling shutter of size 3m x 3m in the processing plant to permit
entry of seed processing equipment into the hall for installation.

The processing hall will be of size 20 m x 10 m x 6.5 m. Height will be kept to

facilitate installation of the seed processing equipment and machinery. A
sequence of processing machines to be installed is shown in Fig. 6. Floor of the
processing hall will be 0.9 m above the ground level. Roof will be of tubular
trusses covered with asbestos sheet.

The shed will have sufficient provision for natural as well as forced ventilation in
order to maintain congenial atmosphere inside the shed. The shed will
accommodate seed scalping, seed processing and packaging equipment and will
have sufficient space for weighing and packaging.

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Cleaner Specific Weighing,

Pre- Indented

10 m
cum Gravity packing
cleaner grader cylinder separato

20 m

Sequence of processing machines to be installed in processing hall

Auxiliary building
In addition to building discussed above, a provision will also be made for
generator room. The plinth area and cost estimate is indicated in Table 5.
Sufficient length of road will be provided to connect various functional buildings
with each other and main highway. Internal road will be 3.6 m wide. Boundary
wall will be provided all around the complex for security reasons.

One tube well is available at the site, which will be used for construction works
and drinking as well.

The site is outside the municipal limits and as such no sewage system exists. A
septic tank with soakage pit will be provided for disposal of effluents. Entire
complex will have a good drainage system.

Provision for fire fighting equipment such as extinguishers, water buckets, sand
buckets etc will be made to fight minor fire hazards. The purchase of these items
will be made through contingency grant.

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 Agro Seeds

The processing plant building will be constructed as per CPWD/PWD norms. It

will have tubular trusses, AC sheets pitched hole roof, cement concrete flooring
finished with water-proofing cement paint, aerated, ventilated, rat proof and bird
protection. Sealed doors will be provided in these buildings. Buildings will be
suitably planned to have interconnection for movement of seeds and materials.
Details of requirement of building complex and their cost estimate are given in
Table Tentative layout plan is given in Fig

Building structure of the seed processing plant

S. Description Area Rate/Unit Amount

No. (in Rs.) (Rs. in
lakhs)
1. Threshing/drying platform with 100 m2 750/m2 0.75
0.90 m plinth height
2. Plant building for temporary 200 m2 3500/m2 7.00
(a) store of raw seeds, processing
machines as per layout plant
(b) Room for DG set 45 KVA 25 m2 3000/m2 0.75
2 2
(c) Room space for Plant Incharge, 50 m 3500/m 1.75
certification packing material,
chemicals, workshop for storing
of spare parts, tools, processing
screens and toilet etc.
3. Seed storage, 250-300 tonnes 200 m2 4000/m2 8.00
4. Boundary wall (200 m) 900/m 1.80
2 2
5. Cement concrete Road (125 m x 500 m 500/m 2.50
4 m), 25 cm thick
6. Site development like drainage, 2.20
security etc @ 10% total
expenditure given above
SUB TOTAL 24.25
Contingency @ 3% 0.73
GRAND TOTAL = 24.98 25 lakhs (Rs twenty five lakhs)

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Road

Office,
miscellaneous Seed store Laboratory
store 10 m x 20 m
50 m2

Plant building
10 m x 20 m

Generator room
Receiving cum drying platform 25 m2
10 m x 10 m

Building layout plan

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Financial Analysis

Total capital investment for this project is estimated to be around 40.20 lakhs,
which includes the cost of civil work, equipment and machinery but excluding the
cost of land, which belongs to the entrepreneur and will be available for this
project. Any other cost involved in consultancy, office furnishing etc could be
managed within the contingency. This project has been planned to implement
immediately and site is ready for work to be started just with the approval of loan
by financing institution.
Schedule of civil work, purchase of equipment and machinery shall be
synchronized to ensure that the plant is ready for processing the produce in
November-December to make available paddy seed for January sowing. Balance
civil work would be completed by March i.e., within the financial year 2021-22.
Summary of project cost
S. No. Particulars Cost, Rs in lakhs
1. Plant machinery and equipment 15.20
2. Building and civil works 25.00
3. Cost of Land Own
Total 40.20

Funding of the project

Out of estimated cost of 40.20 lakhs, Rs 10 lakhs would come, as subsidyfrom
Government of India under the scheme of GOI for boosting the seed production in
private sector and Rs 26 Lakhs is proposed to be taken as Long Term Loan from
the bank. As the subsidy is back-ended, eligible amount of subsidy 25% i.e. Rs 10
Lakhs would initially be taken as term loan from the bank to be adjusted from the
subsidy that would be made available by GOI. Arrangement of working capital
would be separately made for undertaking the business. The entrepreneur shall
contribute balance amount of Rs 4.20 lakhs plus the land required for the project

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Schedule of Implementation
Implementation schedule of establishment of the seed processing complex is given
in Table. Processing plant building, boundary wall, front road, generator room,
drying platform, laboratory and office shall be completed immediately within 2-3
months after approval of loan. Simultaneously, processing machinery shall be
purchased and installed and plant commissioned to undertake processing in the
first season. Other buildings and ancillary works like road, seed store, drainage
system etc shall be started by November 2021 and would be completed by March
2022.

Project implementation schedule

S. Activities Completion schedule,
No. month
1 2 3 4 5 6 7
1. Site selection Completed
2. Approval of project To be completed before
start of project
3. Tendering award of contract and
construction of 1st phase of civil work
4. Purchase of processing machinery,
delivery and installation
5. 2nd phase construction work, outside
electrification, etc.

Schedule of Production
Entrepreneurs are already in business since last year. Peanut crops of 2021-22are
in the field which would be harvested during Oct-Nov. and jawar sowing shall be
undertaken during Nov-Dec. Part of peanut production is sold in Nov- Dec for
jawar sowing and balance is carried for June sowing. Similarly, part of jawar
produce is sold for peanut sowing in June-July and balance is carried for Nov.
sowing. While working out capital requirement, it is presumed that 70% would be
sold immediately and 30% would be carried forward. While 30% of peanut
production is sold in next financial year, whole of jawar produce is sold in the same
financial year in which it is produced/purchased.

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Variable Production Cost

Schedule of operational expenses is given in Annexure I.

Cost of raw seed

Paddy seed shall be grown by the farmers on contract basis. Produce shall be
received at the processing plant after moderate cleaning by farmer and would be
purchased with adjustment of weight on 12% (wb) moisture content.

It has been observed that generally good seed recovery after processing is
possible to the extent of 90% after processing. Out of the remaining 10%, almost
2% of material is waste and valueless while another 8% can be sold as grain at
reduced price for milling and consumption.

Seed certification and packing cost

Certification and packing material cost includes the cost of bags, labels, leaflets,
tags, lead seals etc. Cost of these materials has been worked out, taking into
consideration the present cost and worked out on per quintal basis as given in
below Table.

Seed certification and packing cost

S. Item Rs/quintal Remarks
No.
1. Bags 37.50 Seed will be packed in jute
canvas bags costing Rs 15 per
bag
2. Certification materials 2.50 Labels @ Rs 170 per 1000.
like labels, leaflets, Leaflet @ Rs 250 per 1000.
tags, lead seals, Tags @ Rs 170 per 1000.
thread etc. Lead seals @ Rs 30 per kg.
Thread @ Rs 40 per 1000 m.
Total =
40.00

For the purpose of financial calculations cost of certification and packing has been
taken at the rate of Rs 40 per quintal on processed seed quality.

Seed processing cost

Seed processing mainly involves expenditure on electricity and diesel and labor
involved in processing operations. Total power required for operation of

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the plant is 21 kW. The entire machines will not operate all the time. Presuming
0.80% of maximum power demand in processing plant, it is estimated that energy
consumption in a shift of 7 hours would be approximately 112 kWh, which will cost
about Rs 500 per shift. Similarly, 5 labourers engaged in a shift will involve
expenditure of Rs 500. Assuming that 80 quintals of paddy would be processed
and packed in a shift, the cost on this component would be approximately Rs
12.50 per quintal, which has been considered in calculations. Separate provision
for diesel has not been made. It is presumed that when electricity is not available,
the saving in the cost of electricity will support the expenditure on diesel for running
the generator set.

Transport cost
Seed production is proposed to be organized in the nearby areas of processing
plant. Material shall be delivered by the growers at the processing plant at their
own cost. Similarly, dealer/farmer will lift the material from the godown and hence
no provision for transportation has been made.

Repair and maintenance

Processing machineries shall be purchased with enough spares to support 3 years
of requirement. A provision has been made for repair and maintenance to the tune
of 1% of the cost of plant machinery and buildings.

Semi Variables and Fixed Cost

Salaries
A manager shall be appointed by the company at a salary of Rs 15000 per month.
Provision for 6 months salary has been made in the first year i.e. 2021-22. Another
staff (an Accountant) shall be appointed at a salary of Rs 10000 per month from
the year 2022-23. Provisions have been made accordingly.

Administrative and general overhead

A revision at the rate of 1% of turn over has been made towards thisoverhead from
the year 2021-22 onwards.

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Selling and promotional overhead

This will be mainly to popularize the seed. Provision of 1% of turnover has
accordingly been included in the project from 2021-22 onwards.
-
Insurance
Provision of insurance has been made at the rate of 0.5% of capital cost from
2021-22 onwards.

Other Financial Cost

Depreciation
Depreciation is taken at the rate of 5% for building and 10% for plant machinery.
For the first year, no provision shall be made on account of depreciation, as the
plant would be completely ready by the end of 2021-22.

Interest on long-term loan

Provision of interest on loan of 100% investment has been made at a rate of
11.75 % on long term loan and 11.25 % on short term borrowing (limit) and interest
thereon during the first year i.e. till March 2021 shall be capitalized and
provision for payment of loan has been made from the year 2021-22. However, as
per provision of the scheme interest on subsidy amount shall not be charged and it
is kept separately. Subsidy is adjusted as last installment of term loan and interest
shall be credit of entrepreneurs. Similarly, provision of
11.25 % interest is made on the limit fixed (8.0 lakhs) by the bank for the period of
6 months in first 4 years.

Margin Money
Entrepreneurs propose to place 8.0 lakhs required working capital for first 4 years.
Only needed amount of working capital/ limit shall be drawn to meet operational
needs such as purchase of seed, processing cost etc.

Profitability and Economics

It may be seen that the project would start earning profit from the year 2021-22
itself. Trend of profitability over the years can also be seen from the Table.

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Rate of Return
Financial rate of return works out to be more than 20% before payment of interest
on long-term loan and taxes. The project is therefore sound enough for financing.
Break Even Analysis
The break even point indicates the level of sales at which the semi variable and
fixed expenses of the project are absorbed. In the proposed project, the

break even point is reached when a turn over of Rs 40.25 lakhs is obtained or
6559 quintals of seed is handled amounting to 33 % of business at maturity.
Cash Flow
Cash flow analysis for a period up to the year 2030-31 is given in b e l o w Table

Payback period
Analysis on cash flow and repayment given in Table 13 indicate that total loan (long
term) drawn in establishment of the project is returned by the year 2029- 30 in the
year wise break-up given in Table 14.
Long-term loan repayment schedule.

YEAR PRINCIPAL REPAYMENT INTEREST (Rs in Lakhs)

36 lakhs
2021-22 2.00 6.12(On 26 lakhs)
2022-23 2.00 2.82
2023-24 2.00 2.59
2024-25 3.00 2.35
2025-26 3.00 2.00
2026-27 4.00 1.65
2027-28 5.00 1.18
2028-29 5.00 0.59
2030-31 10.00 (GOI Subsidy) -
Total 36.00 19.3

Thus, total principal amount returned = 36.00 lakhs (10.0 lakhs by GOI & 26 lakhs
by entrepreneur) and Interest paid= 19.3 lakhs(on long term loan).The repayment
schedule will be drawn on the loan amount (including subsidy) that the total subsidy
amount is adjusted after the full bank loan component and no interest is charged on
subsidy amount. The subsidy released by Government of India will be kept in a
separate borrower-wise account.

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MARKET ANALYSIS
Indian Seed Market
The Indian seed industry, over the years, has evolved by adopting and innovating
upon scientific advancements in variety development and quality seed production.
The industry has grown at a rapid pace of 20.59% over the period 2010-2015 and
reached Rs. 141.24 billion in 2015 on account of rapid adoption of Bt cotton hybrids,
single cross corn hybrids and hybrid vegetables.
Rising awareness among the farmers related to the benefits of using certified/ quality
seeds has led to an increase in the demand for seeds over the past few years. This
has resulted in an increasing willingness among the farmers to pay higher price for
quality seeds.

Indian Cotton Seed Market

Cotton is one of the most cultivated crops in India, with great economic importance
attached to it. The cotton seed market was valued at Rs.24.86 billion in India in
2016. India is also the second largest producer of Cotton worldwide. Since 2002, Bt
Cotton has steadily prevailed over India’s Cotton fields raising overall cotton
production. Today, over 90% of Cotton grown in India is cultivated by using Bt Cotton
seeds. There are very few countries in Asia and Africa which allows commercial
cultivation of GM crops and hence Cotton seed export has not been picked up in last
decade. Now with more countries opening up for GM cultivation, there exists huge
potential to export Cotton seeds from India.

Indian Maize Seed Market

Maize is one of the largest consumed commercial seed, accounting for Rs.14.91
billion of revenue in 2016. The growth in maize is attributed to its increased use as
livestock feed and in ethanol production. Presently, approximately 25% of maize is
used as food grain, while remaining 75% is used to meet nonfood demand, viz. bio-
fuels, poultry feed, animal feed, brewing alcohol, starch based wet milling industries
and other industrial uses. However, the enhanced investment in maize by global
seed companies would flow into India through technology transfer and Public-Private
Partnerships in the next fifty years to develop maize.

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Indian Hybrid Rice Seed Market

Government of India has not fixed any target for increasing acreage of hybrid rice in
the country. However, efforts are being made to promote cultivation of hybrid rice
through various crop development programs such as National Food Security Mission
(NFSM), Bringing Green Revolution to Eastern India (BGREI) and Rashtriya Krishi
Vikas Yojana (RKVY). With private sector playing a major role in Hybridization of
Rice, the hybrid rice seed market has touched more than 45 thousand metric tones
volume sale in 2016. The growth in 2016 can be attributed to significant increase
under Peanut acreage of rice due to abundant rainfall, after a consecutive two years
of drought and growers shift from Inbred to Hybrid due to problems faced last year
with OPV’s.

Indian Seed Market Trade

Being agriculture based country; India is probably best placed to cater to not only
domestic but also global seed requirements. Its importance is also reflected by its
overall position in the global seed trade. In case of fruits and vegetables, India ranks
at number 16 in the global fruits and vegetable seed exports with only 1.68% share
of the global trade in 2014-15.
Although, there is a substantial increase in India’s export of fruits and vegetable
seeds in value, India has already started to lose a large share of such exports over
the past few years.
Lack of appropriate policy reform in Indian seed sector can be one missing element,
which are discouraging exporters and producers to engage more in export of fruits
and vegetable seeds. It is also needed to see whether the bargaining positions of
other countries have improved or they have taken any competitive advantage or
market imperfections of India has increased in recent years. However, India’s Fruits
and Vegetable Seed Market Exports Fruits and Vegetable Seed Imports Indian Fruits
and Vegetable Seed Market Exports by Countries; 2016 Fruits and Vegetable Seed
Imports by Countries; 2016 Source: APEDA Source: APEDA ports of the fruits and
vegetable seeds have depicted a declining trend in 2016, when compared to 2015.
This decline is reflected not only in quantity but also in value terms.
The major countries exporting fruits and vegetable seeds to India in 2016 included
Thailand, Egypt, Chile, United States and China, accounting 64% of the total imports
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of fruits and vegetable seeds, amounting to Rs.4.16 billion in India.

The Indian seeds market is anticipated to grow at a considerable CAGR rate due to
improvement of seed replacement rate, production and distribution of quality seeds
appropriate to agro-climatic zone at affordable prices along with a determined effort
to address region specific constraints. Moreover, several factors, including increased
subsidies and renewed government thrust on the use of high yielding varieties, will
lead to an increased productivity in the seed market.

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CHAPTER 2

SWOT ANLYSIS

Objectives of the Study

The main objective of the study is to make SWOT analysis of agro-based industry in
India. The specific objectives are as given below:

1. To identify the Strengths of the agro-based industry in India.

2. To study the Weakness of the agro-based industry in India.

3. To identify the Opportunities of the agro-based industry in India.

4. To identify the Threats before the agro-based industry in India.

Methodology
The present study attempts to analyze the situation of Indian agro-based industry.
For this purpose, a technique of SWOT analysis has been applied to evaluate the
position of agro-based industry in India. The general observations and the review
of agro-based industry have motivated this study.

SWOT analysis of agro-based industry in India

SWOT Analysis is a method used to evaluate the Strengths, Weaknesses,

Opportunities, and Threats involved in a project or in a business venture. It
involves specifying the objective of the business venture or project and identifying
the internal and external factors that are favorable and unfavorable to achieving that
objective. The SWOT analysis of agro-based industry provides analysis and
interpretations of different aspects of agro-based industry in terms of its strengths,
weaknesses, opportunities and threats.

Strengths of the agro-based industry in India

Agro based industry has increasing role in the economy in Indian as well as global
context it has great strengths which are providing strong result in order to survive in
the competitive business environment. The strengths of this industry have been

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discussed below.

1. Huge natural resources: India is one of the versatile countries in the world
where number of huge natural resources are available. Each natural resource
providing a potential to establish a new agro based industry. It leads to
undertake economic activity in rural area.

2. Suitable geographical conditions for agricultural production: India has a

rich in an appropriate geographical conditions for agriculture production where
huge agriculture production is possible. Agro based industries are mainly
depends on the agriculture outputs so it is one of the important strengths of the
agro based industry as far as its development is considered.

3. Availability of raw material: Raw material is the necessary inputs for getting a
final product for the agro-based industry. India is being produced huge
agriculture product which become the raw material for agro based industry. It
motivates people to undertake any enterprise

4. Ability to exports: Agro based industry is also able to export its product in the
international market like sugar, cashew kernel etc. Agro based industry can
acquire a valuable foreign exchange which will strengthen national economy.

5. Strong traditional knowledge: Agro based industry has a strong traditional

knowledge which is percolated from the generations to generations which is
providing inputs to the expertise in manufacturing like artisans industry, textile
industry, cashew industry, handicraft industry etc.

6. Additional employment generations: Agro based industry generate

additional employment in rural area this opportunity may go to a person from
poor family it helps to reduce the poverty by providing income sources for
livelihood.
7. Improvement in product quality: Know product quality of product from agro
based industry is increased so it has demand in the world market also.

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8. Good labor supply: This industry get labor easily in the local area at
reasonable rate which can save cost of production and enable they industry
they to run the business continuously.

9. Large domestic demand: Production of the agro based industry has a huge
demand in the domestic market. Large domestic market demand is creating a
different perspective for this industry it is considered one of the important
positive aspects of this industry. India has second largest population in this
world it is increasing year by it creates large demand in domestic market.

Weaknesses of the agro based industry

Agro based industry has some weaknesses which are discussed below.

1. Lack of infrastructure facility: In the development process of the any industry

infrastructure is the important elements which is necessary to be considered
consciously. In case of the agro based industry infrastructure is not adequate
like road, transportation, banks, telecommunications etc.

2. Low quality of the raw material: Industry requires good quality raw material
input to make it quality product but low quality raw material is available in the
local market. Because is some case agriculture output of high quality is
exported.

3. Complex export procedure: The export procedures are very complicated it

requires more time that may create problems for this industry. It requires to
complete different types of formalities it requires more time and effort for them.

4. Political interferences: In rural agro based co-operatives are under influence

of politics interferences, political leaders interfere- fences the important
decision of such organization in three vested interest it creates hurdle in the
growth of agro based industry.

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5. Lack of finance: In the area where no three tire banking system is situated here
industries are facing problem getting finance.

6. Lack of professional management: Rural industry may not have professional

expertise It is very difficult to utilize full resources of
the organization properly so as to achieve the objectives of the company.

7. Traditional approach: Indian agro based industry are run with the conventional
approach like conventional method of production, processing, planning,
policies, management, marketing etc. The outgoing approach increase cost of
production of the agro based industry.

8. Lack of modern technology: Use of technology increases the production

capacity of the company with the low cost and time. The cost of modern
technology is very high which is not affordable to small agro based industry. So
unavailability of modern technology is become the weakness of the industry.

Opportunities of the agro based industry

Agro based industries are the important element in the rural economy of the
country. These industries particularly have the following opportunities.

1. Increasing market span: Initially only local market is available for the agro
based industry but at present market span for agro based industry has
increased. It is not necessary agro based industry is depend only to the local
market it can be move outside market. Increasing market span creating huge
opportunities for the agro based industry.

2. Export: The agro based industry is able to export his product to the
international market like cashew kernel, sugar, cloth, milk product, etc. This is
creating big opportunities for this industry which providing valuable foreign
exchange to the country. It is now set the international platform for the Indian
agro based industry.

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3. Value addition: The rural industry can make value addition product like
reprocessing on milk, reprocessing on sugar, reprocessing on cashew kernel
etc. This is area where agro based industry has considered big opportunities.
4. Entrepreneurship development in the rural area: This industry is belonging
to the rural area of the country; success of this industry is boost the new people
to established the new industries in the rural area.

5. More employment generations: The agro based industry can able to create
the more employment generations in the rural area, this may also considered
as one of the opportunities for this industry.

6. Proper utilization of natural resources: The Indian agro based industry is

entirely depends on the agriculture resources. India is very rich with their huge
natural resources. To utilize the proper natural resources is big opportunities
for the agro based industry in India.

Threats of the agro based industry

The following factors are creating threats for the agro based industry.

1. Global competition: The agro based industry are facing know the global
competition. It is very difficult to agro based industry to run a business in the
high competitive area with the low profile. Generally agro based industry is
small having small capital in the remote area of the country so it is difficult to
compete the large organization.

2. Unorganized market: It is very difficult to found the well-organized market for

agro based industry product; good market is the necessary for to have the
appropriate price for the final product. Problem of the marketing is considered
one of the important threats for this industry.

3. Bad trade practices: In order to maintain the sustainable development of any

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industry good trade practices are necessary. In case of agro based industry
lack of good trades practices like quality of product, weight, packaging etc. are
create the problem of this industry.

4. Price fluctuations: Because of the price fluctuations it is very difficult to

maintain the pricing strategy some time company may have loss, this
Losses agro based industry could not bear, hence this factor creating the threat
for the rural industry.

5. Political biasness: The big agro based industries are somehow political bias,
interfering the major decision on the company which is not good for the agro
based industry for acquiring the predetermined goal.

6. Huge Cost of modern technology: The cost of modern technology is always

high it is very difficult to purchase this machinery for small organization in India.
The high cost of machinery is creating threats for the agro based industry.

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VISION, MISSION, OBJECTIVES

VISION:
 To encourage farmers for Seed Production of different agricultural crops at
Village level itself.
 To promote the farmers for use of certified/qualities seed including HYV
seeds.
 To make the farmers self sufficient in respect of seeds.
 Enhancing productivity & farmer’s incomes and bridge the yield gap.
 Creation/Strengthening infrastructure facilities for production and distribution
of quality seeds in public sector and private sector.

MISSION:
 To make available quality seeds to the farmers locally.
 To encourage farmers, FPOs for taking Seed production of all crops including
oilseeds, Pulses, green manure and fodder crops, making available quality
seeds of these crops to farmers locally.
 To increase farmers income through seed production.
 To Train the farmers for Seed Production and Seed Technology at village
level.
 Supplementing the efforts of State Government for farmers.
 Promoting implementation of DBT in distribution of seeds subsidy to the
intended farmers/beneficiaries bank account.

OBJECTIVES:
 To upgrade the quality of farm saved seeds.
 To make available financial assistance for distribution of foundation/certified
seed at subsidized cost for production of quality seeds.
 To train the farmers on seeds production and Seed Technology aspects for
the seed crops grown in the Seed villages.
 To encourage farmers to develop seed storage capacity of appropriate quality.
 To encourage the farmers for quality seed production.
 To create/strengthening infrastructure facilities in Public Sector for seed
cleaning, drying, grading, processing, treating, packing and seed storage for

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production and distribution of quality seeds in public sector and private

sector.
 To make timely availability of certified/quality seeds at affordable price to the
farmers of hill remote areas of Karnataka.

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PEST Analysis

P: - Political
E: - Economic
S: - Social
T: - Technological

• Meaning: - PEST is an acronym for Political, Economic, Social and

Technological. This analysis is used to assess these four external factors in
relation to your business situation. Basically, a PEST analysis helps you
determine how these factors will affect the performance and activities of your
business in the long-term.

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Political analysis
• One of the reasons that government industry at to face the rise and falls is
because of the political instability.
• The economic is intervened by the laws and policies issued by the government
which results in ups and downs of the industry.
• The laws like recycling of waste policies regarding import export and trade has a
major impact on Seeds industry.
• Seeds industry is also affected by the rules and regulations regarding taxation
these rules changes in state wise and country affecting in economic growth.

Economic analysis

• Economic factors such as affecting the caption income, national income,

resources mobilization, infrastructure development, capital formation,
Employment generation etc…
• Impact on GST.
• Reduces the unemployment rate.
• Accepted to generate the new jobs and employment opportunities are created.

Social analysis

• Social factors are influence that affect and identify the lifestyle.
• Social factors are affecting the health and education.
• The social factors refer to the any changes in trend which world impact on
business environment.
• Social factors in a considerable rises in pension cost and increasing the
employment of older workers.

Technological analysis

• Technological significantly influenced product development and also introduce

fresh cost cutting process.
• Digital trends used without human ever entering in the organization quality
Seeds producing.

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• Seeds machinery automation allows fine tuning of input reduce the demand for
manual.
• And use the advanced devices robotic systems and sensors GPS safe for more
environment friendly.

LISCENCE AND PERMISSION

 A seed producing/processing firm can be started by a person, group of

persons, firm or organization to grow or organize the production of seeds.
 Any individual, who is having their own agriculture land and is undertaking
own production of seed, as per requirements of seed production. They
should apply with the respective state seed certification department.
 The state license issuing authority is “Karnataka State Seed Certification
Agency (KSSCA)”.

Apply In-Person:

1. Applicant should go to their respective office to apply.

2. Link for contact details:
3. Please collect the appropriate application form as per officer’s advice
or write on a A4 sheet.
4. Link for application form: please use the form at page number 10.
5. Submit the completed application, registration fees deposited challan
along with required documents as mentioned in our required
documents session.
6. After accepting the application, officials will check the documents.
7. If all are in place, authority will issue a receipt for the accepted
application.
8. The submitted application will be processed by the department. The
submitted documents will be subjected for Scrutiny.

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9. Seed Certification Officer (SCO) will inspect the premises and will do
verification as per norms.
10. Verification of seed source, class and other requirements of the seed
used for raising the seed crop will be processed.
11. Field inspections to verify conformity to the prescribed field standards
will be done.
12. Supervision of post-harvest stages including processing and
packaging will be made.
13. With the report from Seed Certification Officer (SCO) this application
will be subjected for final approval.
14. Once the license is prepared with sign and seal of the respective
authority, applicant gets intimation to collect the License.
15. On the said date, applicant can collect the license or it will be delivered
as per applicable norms.

Required Documents

 GST details
 Application form.
 Company Letter head
 Rubber stamp in the company name
 Permanent Resident Certificate
 SSI provisional registration
 Qualification Certificate
 Seed Storage & Processing Unit/Plant details with map
 A copy of approved layout plan.
 Permanent account number (PAN)
 List of Lab equipment's
 Registration fees deposited challan
 No Objection Certificate (NOC) from the State Pollution Control Board.
 Details of seeds handled
 Identity Proof (Voter ID, Aadhaar card, Pan Card)

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 Address proof
 Location Map
 Authorization from company if any.
 Document of the establishment premises and address proof
 Affidavit on stamp paper. (value as mentioned by department officials.)
 Establishment certificate
 Photo attested by Gazette officer/notary
 Aadhaar Card
 Additional documents (If Any)

Office Locations & Contacts

Karnataka State Organic Certification Agency (KSOCA)

(A division of KSSOCA - Govt. of Karnataka undertaking)
Opp. Baptist Hospital, Hebbal, Bengaluru-560024
Phone No.: 080-23415505,
Fax : 080-23415506
Email: dscbng@gmail.com

Eligibility

 Since the process consists of crop cultivation and processing activity, the
plant should be located inside/near the farm wherein crop is cultivated.
 Having their own agriculture land and is undertaking own production of
seed.
 Proper conversion of land (agriculture to industrial) as per state
government regulation.
 Other criteria as advised by department.

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Validity

 Valid for one year.

 This certificate must be renewed before the expiry of the validity period
with a renewal fee as prescribed by the state authority from time to time.
 Violation of aforesaid terms and conditions by the registered
organization/Institution will lead to cancellation of this registration by
respective department at any stage before the expiry of the validity period.

Processing Time

The whole process of issuing the licence is within 30 (working) days from the date of
application received by the licence issuing authority

Required Information

 Full Name and Address of the applicant

 Full particulars of the names of seeds to be handled
 Mobile number
 E-mail ID

Need for the Document

 Seed Processing is refining post-harvested seed to its purest form for

replanting purposes and human/animal consumption.
 This involves taking the cleaned seed and coating them with a chemical,
usually antimicrobial or fungicidal, to make them more robust for the field.

Information which might help

 Carry all the necessary documents.

 Make a photocopy of your filled form for future reference.

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CHAPTER 3
Market situation
Indian Seed Market
The Indian seed industry, over the years, has evolved by adopting and innovating
upon scientific advancements in variety development and quality seed production.
The industry has grown at a rapid pace of 20.59% over the period 2010-2015 and
reached Rs. 141.24 billion in 2015 on account of rapid adoption of Bt cotton hybrids,
single cross corn hybrids and hybrid vegetables.
Rising awareness among the farmers related to the benefits of using certified/ quality
seeds has led to an increase in the demand for seeds over the past few years. This
has resulted in an increasing willingness among the farmers to pay higher price for
quality seeds.

Indian Cotton Seed Market

Cotton is one of the most cultivated crops in India, with great economic importance
attached to it. The cotton seed market was valued at Rs.24.86 billion in India in
2016. India is also the second largest producer of Cotton worldwide. Since 2002, Bt
Cotton has steadily prevailed over India’s Cotton fields raising overall cotton
production. Today, over 90% of Cotton grown in India is cultivated by using Bt Cotton
seeds. There are very few countries in Asia and Africa which allows commercial
cultivation of GM crops and hence Cotton seed export has not been picked up in last
decade. Now with more countries opening up for GM cultivation, there exists huge
potential to export Cotton seeds from India.

Indian Maize Seed Market

Maize is one of the largest consumed commercial seed, accounting for Rs.14.91
billion of revenue in 2016. The growth in maize is attributed to its increased use as
livestock feed and in ethanol production. Presently, approximately 25% of maize is
used as food grain, while remaining 75% is used to meet nonfood demand, viz. bio-
fuels, poultry feed, animal feed, brewing alcohol, starch based wet milling industries
and other industrial uses. However, the enhanced investment in maize by global
seed companies would flow into India through technology transfer and Public-Private

Page 43
 Agro Seeds

Partnerships in the next fifty years to develop maize.

Indian Hybrid Rice Seed Market

Government of India has not fixed any target for increasing acreage of hybrid rice in
the country. However, efforts are being made to promote cultivation of hybrid rice
through various crop development programs such as National Food Security Mission
(NFSM), Bringing Green Revolution to Eastern India (BGREI) and Rashtriya Krishi
Vikas Yojana (RKVY). With private sector playing a major role in Hybridization of
Rice, the hybrid rice seed market has touched more than 45 thousand metric tonnes
volume sale in 2016. The growth in 2016 can be attributed to significant increase
under Peanut acreage of rice due to abundant rainfall, after a consecutive two years
of drought and growers shift from Inbred to Hybrid due to problems faced last year
with OPV’s.

Indian Seed Market Trade

Being agriculture based country; India is probably best placed to cater to not only
domestic but also global seed requirements. Its importance is also reflected by its
overall position in the global seed trade. In case of fruits and vegetables, India ranks
at number 16 in the global fruits and vegetable seed exports with only 1.68% share
of the global trade in 2014-15.
Although, there is a substantial increase in India’s export of fruits and vegetable
seeds in value, India has already started to lose a large share of such exports over
the past few years.
Lack of appropriate policy reform in Indian seed sector can be one missing element,
which are discouraging exporters and producers to engage more in export of fruits
and vegetable seeds. It is also needed to see whether the bargaining positions of
other countries have improved or they have taken any competitive advantage or
market imperfections of India has increased in recent years. However, India’s Fruits
and Vegetable Seed Market Exports Fruits and Vegetable Seed Imports Indian Fruits
and Vegetable Seed Market Exports by Countries; 2016 Fruits and Vegetable Seed
Imports by Countries; 2016 Source: APEDA Source: APEDA ports of the fruits and
vegetable seeds have depicted a declining trend in 2016, when compared to 2015.

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 Agro Seeds

This decline is reflected not only in quantity but also in value terms.
The major countries exporting fruits and vegetable seeds to India in 2016 included
Thailand, Egypt, Chile, United States and China, accounting 64% of the total imports
of fruits and vegetable seeds, amounting to Rs.4.16 billion in India.
The Indian seeds market is anticipated to grow at a considerable CAGR rate due to
improvement of seed replacement rate, production and distribution of quality seeds
appropriate to agro-climatic zone at affordable prices along with a determined effort
to address region specific constraints. Moreover, several factors, including increased
subsidies and renewed government thrust on the use of high yielding varieties, will
lead to an increased productivity in the seed market.

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 Agro Seeds

MARKETING STRATEGIES

A seed producer’s main goal is to satisfy the seed needs of the farming community,
which could be a village or group of villages, a province or country, or even farmers
located in different countries. In this context, the scope of marketing is very wide and
goes beyond the sale of seeds. Seed marketing activities should be coordinated to
develop an appropriate “marketing mix” with the aim of achieving maximum
customer satisfaction (the “customer” being the farmer).

WHAT IS SEED MARKETING?

Seed marketing is the process by which seeds and associated services are valued
and exchanged. It entails all those activities involved in transferring seeds from
producers to end users (i.e. farmers). Seed marketing is much more than the
physical process of distributing seeds and providing accompanying services. To
succeed, seed companies must not only supply seeds and related services; they
need to understand the marketplace and fully meet the needs of their customers.
Seed marketing begins with the farmers (understanding their needs in terms of
crops, varieties, packaging size etc.) and ends with the farmers (satisfying their
specific needs).
Within this scope, the producer has three broad functions:
• Exchange or sale (buying and selling)
• Physical supply (storage and transportation)
• Facilitation (marketing research, production planning, seed processing, packaging,
branding, sales and promotion).
The objective of these three functions is to identify, satisfy and retain customers.
This is crucial in a seed market offering alternative products, including farmers’ own
saved seed and quality seed provided by competing producers. A successful seed
company creates a competitive advantage by consistently providing farmers with the
seed and services they need in the hope that these farmers will become loyal
customers, cease to consider the alternatives and develop the habit of purchasing
seed only from the company of their choice. This forms the basis of the marketing
concept and its underlying principle, i.e. focus on the needs/desires of target markets

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and deliver better value than existing competitors.

The marketing mix comprises four controllable parameters in the business: Product,
Price, Place and Promotion, commonly known as the 4Ps. In a successful business,
those in charge of marketing must be able to control and create an appropriate mix
of the 4Ps subject to external constraints of the marketing environment.
In doing so, the business must satisfy the following conditions:
• Product: Seed offered for sale must have the right characteristics (desired crop/
variety and high quality in terms of purity, germination capacity and health).
• Price: Seed must be both affordable for famers and able to generate a reasonable
profit for the enterprise.
• Place: Seed must be in the right place at the right time (normally within easy
reach of the farmers and in an area where the enterprise is able to compete for
market share).
• Promotion: Target farmers need to be made aware of the existence and availability
of the seed through appropriate strategies in line with the company objectives. For
successful seed production and marketing, enterprises have to balance the four
elements to achieve a combination that serves the needs and satisfaction of the
target farmers while generating optimum revenue from sales.
Successful enterprises need to combine all four parts of the marketing mix to
develop their marketing strategy.
For example:
• To protect product quality throughout the production process, carefully supervise
and monitor contract growers to ensure that only seeds from the best plots are
harvested and processed.
• To create market share for a new crop variety, set a promotional price for special
seed packages to encourage farmers to try a new product.
• To sell products in remote places, offer free delivery for orders of a minimum
quantity.
• To promote “honesty and credibility”, ensure that the labeling on all seed packages
carries clear information on the levels of germination, purity and seed health in
accordance with standards that fulfill or surpass the national minimum standards in
order to help farmers choose. Overall, the message should ensure that the company
remains a trusted brand in the marketplace.

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MARKETING MIX:
TARGET MARKET: Farmers
PRICE:
• Retail price: 25% above grain price
• Wholesale price: 3% less than retail price
• Discounts: 25% above grain price
• Retail price: buy 3, get 1 free

PRODUCT:
• Variety: new, drought tolerant, high yielding, early maturing
• Quality: Certified seed
• Packaging: Excellent
• Brand name: Renowned
• Labeling: Fill
• Guarantee: Assured

PLACE:
• Wholesalers: In large shopping centers
• Retailers: At local markets
• Agents: Door to door
• Transport: Free delivery for bulk purchases
• Other: Online shopping and mail order

PROMOTION:
• Advertising: Radio & TV
• Sales promotion: Posters, free samples (mini-kits).
• Publicity: Seed fairs and field days
• Personal selling: word of mouth

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FINANCE STRATEGY

Financial strategy of an organization is essentially concerned with procurement and

utilization of funds. The basic purpose is to ensure adequate and regular supply of
funds fulfilling the present and future requirements of the business enterprise.
Financial strategy deals with areas such as financial resources, analysis of cost
structure, estimating profit potential, accounting functions and so on.
Agricultural finance assumes vital and significant importance in the agro – socio –
economic development of the country both at macro and micro level.
It is playing a catalytic role in strengthening the farm business and augmenting the
productivity of scarce resources. When newly developed potential seeds are
combined with purchased inputs like fertilizers & plant protection chemicals in
appropriate / requisite proportions will result in higher productivity.
Great Agricultural Finance Strategies to Grow Your Farm Business
Every agricultural business is unique, and so each will benefit most from different
financial strategies. Read through to find the best agricultural financing option that
best fits your farm’s specific business model.

1) Expand Your Capacity to Sell

The more you produce, the more you sell, the more money you make. With high
demand and low prices, increasing the amount of units you’re able to sell is crucial.
Yes, this is painfully obvious—but if done without a solid agricultural finance plan,
increasing production could prove fatal to your farm. This is especially true for
agricultural businesses such as commodity farms that make most of their income by
selling their products to large markets.
To expand your capacity, you’re going to need access to capital in order to purchase
the land, livestock, machinery, irrigation systems, and everything else needed to
produce more products. Don’t worry—this isn’t as hard as it sounds. Alternative
lenders like NBC offer specialized loans made specifically for agricultural finance
purposes, with terms that make getting a full return on investments a fast and easy
process.
The key focus here should be on becoming capable of selling more product to the
same few customers. It is not necessary—and often detrimental—to restructure the

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business model of your farm to accommodate to more markets than you already
have. At least until you grow into the newfound success of your farm, focus your
investments on selling more to the markets you already have connections to in order
to maximize your ROI sooner than later. That being said, for those that want to grow
even further

2) Expand Your Product Line

With great variety, comes great opportunity. While adding new kinds of products to
be produced and sold by your business may not be the agricultural finance plan of
choice for those who specialize in producing a select few specialty products, or those
who sell specific commodities to large markets, farms that integrate new products
into their business model have the chance to multiply their profits many times over.
The chance to sell more products to a broader customer base, and spread the name
of your brand to a wider audience makes this a hugely beneficial agricultural finance
strategy for farm businesses seeking additional sources of revenue.

3) Strategy: More than a cliché

At some level, recommending that your company needs a “finance strategy” is
similar to saying that the company needs a “business strategy.” You know your
business. Do you really need a “strategy?” What does that mean, anyway?
For most companies, the competitive and financial environment is continuously
changing. Developing some form of two- to five-year business strategy and finance
strategy is required for smart adaption to an evolving competitive landscape:

 Changing strengths and weaknesses of competitors

 Obsolescence of plant and equipment
 Responding to the broader economic and business climate
 Adopting new technology fundamental to the business
 Satisfying cash demands of growth
 Changing tax regimes nationally and locally

Smaller companies that are more reliant on one technology, business sector,
customer or competitive advantage are more at risk when their underlying business

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model changes. Survival requires adapting to change.

Developing strategy means taking the time to understand the fundamental dynamics
within your business sector and where your company fits into the picture. Within that
context, develop a business strategy for your company that will guide your team’s
decisions for the next few years — including a finance strategy. With these in hand,
your chances for success will be greatly improved.
4)A finance strategy: It’s not just the money
At the core of a business strategy is the finance strategy. Delta Air Lines has a large
inventory of aircraft. Delta’s financing requirements are different from a regional
accounting firm with few capital assets.
Every company needs a plan for financing its operations over the next several years
reflecting its unique business model. Things to consider are:

 Required outside funding

 Funding schedule
 Sources of funds
 Cost of funds
 Tax minimization
 Cash flow from operations

5) Financial Forecasting:
Financial forecasting is used to estimate a firm’s future financial needs. Based on
these forecasts, various budgets can be prepared. Based on these budgets, proper
allocation of funds to various activities can be made. Such budgets and expenses
are a function of future sales and revenues. Accurate forecasts made on the
scientific techniques can provide a basis for strategic decisions.
6) Capital Structure Planning:
Capital structure decisions require a reasonable mix of debt and equity capital. This
is measured by the debt equity ratio. This can create an optimum mix of debt and
equity capital in order to minimize the various risks involved in excessive borrowing.
Good capital structure produces financial stability. It relates to sound strategic
decisions.

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7) Cash Flow Management:

Cash flow management for the firm includes managing the liquidity of the firm and
minimizing financial costs. The finance department must also strive to minimize
taxes. Multinational firms must deal with the differing monetary, political, and
financial aspects of these assignments since they operate in many countries.
Strategic decisions in this regard must be taken carefully.

The flexibility of a firm to adjust to a changing environment often depends upon its
ability to obtain monetary supplies. Multinational firms have increased monetary
demands resulting from currency and interest rate fluctuations. However, one of the
advantages of being a multinational firm is that various financial markets will be
available in which to raise funds. The finance department must coordinate the
monetary flows in and out of these markets so that stakeholders such as
stockholders and creditors see their required rates of return.

Each company formulates their capital needs individually, in consideration of certain

financial strategy. A prerequisite for selection of a particular strategy is
determination of goals, methods of achievement of these goals through use of
available financial resources in consideration of limitations and opportunities, both
internal and those related to company environment. The following stages can be
distinguished within formation of the strategies - finding and assessment of the
problems related to the strategy to be solved, - setting goal

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HUMAN RESOURCES STRATEGIES

Human Resource Management helps you to make your business profitable by

making connections and solving problems of your industry’s backbone which we
called “Employees”. This is the core objective of HRM and this should be applied to
the Agriculture sector as well but despite of being one of the primitive sectors, this
domain is still in developing stages. One of the reasons behind this drawback is the
lack of proper HRM.
5 Important strategies that HRM in the Agriculture sector are:
Antenna Recruiting:
Recruitment Agencies need to notice and observe people who are working in the
agriculture field or the students enrolled in Agricultural Universities. If they find
anyone who fits their criteria, they should be considered and recruited on the best
positions available. Acquirement should be made according to requirement.
Use of Social Media:
Recruiting and Hiring Strategies are pretty different from the conventional ones. In
Agriculture industry, the tactics of enlisting employees and hiring stratagems are also
changing. HR Managers who are working in Farming Industry should use Social
Media as a Recruiting Tool.
The effectiveness of Social Media cannot be neglected in HRM as in recent times it
is the place where you can find the potential employees for your firm. HR Managers
should use Social Media such as LinkedIn, Twitter, Face book and other Social
Media networks effectively so that they can announce and market their job openings
and can promote their business too. Use of Social Media helps you in recruiting and
you can get the best acquirement for your required task.

Hiring:
You cannot have the frosting and cake at the same time but in hiring you cannot
compromise on both; it is the most difficult job amongst all HRM activities. Hiring
needs proper strategy, devotion and focuses on that kind of a person who fits your
Agriculture business the best.
Selecting the person who can work competitively under your management and can
abide to the rules you have made for your own agriculture firm. Agriculture firm’s
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salary budget also affects the hiring process that is the reason HR Managers should
hire the Best person in the least negotiated Salary Package

Communication and Resolving Conflict:

It is a duty of HR department to resolve conflicts among the employees by
communicating with the concerned people in the Agricultural organization. Resolving
a Conflict need an understanding of the core issue. HR Manager should have
knowledge of organizational behavior and on the basis of that he can control the
employee’s behavior and attitude and abide them to work in the organization’s rules
and regulations. It is obvious that the people working in you firm are coming from
different backgrounds and have different mind sets so it is natural that there will be
differences and specially in Farm business where farmers are illiterate and repellent
to accept new methods and modern techniques but HR should resolve these
differences by communicating smartly and skillfully.
Communication includes your power of transferring messages among your staff
members, your body language and your tone. The more your communication is
strong it is more easy to resolve the conflict.
Employee Training:
The most important part of Human Resource Management is Employee Training. An
organization should train their employees to get maximum Return on Individual
basis. As Agriculture currently is emerging and developing very rapidly and the new
technologies and tools are coming in this field to make the Agriculture more
productive, so you can say that the modern era of Agriculture Industry is evolving.
Now agriculture is not merely grow and sell food business instead it’s a domain
where science is practiced on fields. In this modern era your human resource and it
your employees should be modern and the recent strategies and techniques should
be implemented to get maximum profit out of your business. To achieve these
targets you have to train your staff effectively from top to bottom level. The decision
making authorities to the farm workers should be equipped with new and up to date
technologies so that you can compete and stay firm in the emergent agriculture
industry.

The main function of HR in Agriculture is to simply train their staff according to the

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modern needs of the industry. For this purpose HR should first focus the students
who are graduating from Agricultural universities as they are young, energetic and
competitive and can implement modern strategies in Agriculture business and it is
easy for HR Managers to train these young blood as compared to the people having
conventional mind set in agriculture industry. Agricultural firms should incorporate
effective HR programs in their businesses and implement new HR strategies so that
the industry flourish and can engender maximum returns.

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PRODUCTION STRATEGIES

Production strategies are broad long-term action plans. They are made for achieving
the main objectives of organization. Production strategies tell us what the production
department must do to achieve the top aims of the organization. It provides a road
map for the production department.

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 Business strategy

Business strategy is vital for any company seeking to grow its business in a strategic
manner, but what exactly is a business strategy? Put simply, it’s a clear set of plans,
actions and goals that outlines how a business will compete in a particular market, or
markets, with a product or number of products or services
1) Differentiation strategy

Under a differentiation strategy, the company tries to be different and unique from its
competitors. It may offer better quality, quantity, pricing, appearance, and after sales-
service, when compared to its competitors. It may offer more features and facilities in
its product. It may be more flexible while dealing with its customers.

2) Cost leadership strategy

Under a cost leadership strategy, the company tries to reduce its cost of production.
This is done by producing goods on a very huge scale. By doing so, the company
will get the benefits of economies of large scale. Higher the scale of production,
lower will be the cost of production. This is because per unit cost of raw materials,
labor, advertising, sales promotion, R & D, etc. will decrease.

3) Market segmentation strategy

In market segmentation strategy, the company divides the market according to the
type of customers it has to focus and target. It sells different products and services to
different types of customers. To achieve this goal, it produces and sells goods and
services as per the needs of the customers. Therefore, market segmentation
strategy is also called Focus Strategy.
 Competitive Priorities

1) Price or cost strategy

Under price or cost strategy, the company sells its product at a very low price. This
strategy is used when the products are homogeneous (same) in nature. That is,
when the customers cannot distinguish the company’s product from the competitors’
products. In this case, the company will fix a low price. So, the customers will
purchase the company’s product and not the competitors’ products.

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2) Quality strategy
Under quality strategy, the company produces and sells high-quality goods and
services. The prices of such goods and services are naturally very high. However,
this strategy attracts those customers who prefer top quality products and are ready
to pay necessary appropriate prices. The company must pay special attention to the
design of its products. It must upgrade product design and add new product features
to satisfy the current needs and demands of its customers.
3) Delivery strategy
Here under delivery strategy, the company delivers its product and services to their
customers as early as possible that too within a fixed time period. The company
gives top priority to fast delivery of products and providing quickest accessibility of
services. Speed delivery of products and fastest accessibility of services removes
the problem of scarcity and unnecessary delays in the market. Delivery strategy is
used as a selling tactic to fight cut-throat competition
4) Product mix or flexibility strategy
Under this strategy, the company produces and sells a product mix. A product mix is
a group of products, which are sold by the same company. Here, the company does
not depend only on one product for its survival and growth. It uses a product mix
because it offers many advantages to the company. However, only large companies
with huge production capacity can use this strategy.
5) Service strategy
Under this strategy, the company uses a service to attract the customers. It gives
quicker and better after-sales service. It gives around the clock, i.e. 24-hour
customer service. It may render this service directly via the company or through the
network of call centers. Service is required for both consumer goods as well as
industrial goods.
6) Eco-friendly products
Under eco-friendly strategy, the company produces and sells environment-friendly
products also called as Green Products, this is a new type of production strategy. It
is used to reduce pollution and protect the biosphere. Companies may also recycle
certain materials like plastic, metals and papers. The properly recycled products are
later used for manufacturing new products and in packaging

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 Competitive advantage

refers to factors that allow a company to produce goods or services better or more
cheaply than its rivals. These factors allow the productive entity to generate more
sales or superior margins compared to its market rivals.
1) Flexible response strategy

Flexible response strategy is said to be used when a company makes necessary

changes in its production plans that too in accordance with the emerging changes in
the market. Here, importance is given to speed and reliability. That is, the company
must make quick changes as per the arising changes in the market demand. It must
also be reliable. That is, it must give a regular supply of goods to its customers.
There must not be any shortage of goods in the market. To achieve this, the
company must follow a strict production schedule.

2) Low cost strategy

Under low cost strategy, the company fights massive market competition by selling
its products at very lower prices. Simultaneously, it must also maintain the quality of
its products. A company can only sell its goods at minimum prices if it maintains a
low cost of production and distribution. This can be done by producing and
distributing goods on a large scale. That is, company must take advantage of
economies of large-scale production.

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CHAPTER 4
Corporate Strategies

A corporate strategy entails a clearly defined, long-term vision that organizations set,
seeking to create corporate value and motivate the workforce to implement the
proper actions to achieve customer satisfaction
 The three major types of corporate strategies are growth, stability and
renewal.

1) A growth strategy
occur when an organization expands the number of markets served or products
offered, through current or new businesses. The organization may also increase its
revenue, market share or number of employees. The types of growth strategies
include concentration, vertical integration (backward and forward), horizontal
integration, and diversification (related and unrelated).
2) Stability strategy
occurs when an organization makes no significant changes and continues to do what
it is currently doing. Thus the organization becomes stagnant, which means it neither
grows nor declines in growth. For example, the organization may continue to serve
the same clients, offering same products and services, maintaining its market share
and sustaining the current business operations.
3) Renewal strategies
Renewal strategies required when there is a decline in the performance of an
organization; managers are required to develop new strategies. The two types of
renewal strategies are retrenchment and turnaround strategies. Retrenchment
strategy is used in short run for minor problems and for more serious and drastic
problem turnaround strategy is used. Both the strategies require cutting costs and
restructuring of organizational requirements.

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Business level strategy

Business strategy is vital for any company seeking to grow its business in a strategic
manner, but what exactly is a business strategy? Put simply, it’s a clear set of plans,
actions and goals that outlines how a business will compete in a particular market, or
markets, with a product or number of products or services.

1) Cost leadership strategy

Under a cost leadership strategy, the company tries to reduce its cost of production.
This is done by producing goods on a very huge scale. By doing so, the company
will get the benefits of economies of large scale. Higher the scale of production,
lower will be the cost of production. This is because per unit cost of raw materials,
labor, advertising, sales promotion, R & D, etc. will decrease.
2) Differentiation strategy
Under a differentiation strategy, the company tries to be different and unique from its

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competitors. It may offer better quality, quantity, pricing, appearance, and after sales-
service, when compared to its competitors. It may offer more features and facilities in
its product. It may be more flexible while dealing with its customers.
3) Focused low cost strategy:
Low-cost strategy emphasizes producing standardized products at a very low per-
unit cost for consumers who are price sensitive. low-cost strategy is a strategy in
which an organization attempts to gain a competitive advantage by reducing its costs
below the costs of competing firms. Strategists should be careful about decision
making to pursue the low-cost strategy, and it does not provide a permanent
competitive advantage for companies that use low cost or best value. Low-cost
strategy must achieve their competitive advantage in the way that is very difficult to
copy or match by competitors.
4) Market segmentation strategy / focused differ nation strategy :
In market segmentation strategy, the company divides the market according to the
type of customers it has to focus and target. It sells different products and services to
different types of customers. To achieve this goal, it produces and sells goods and
services as per the needs of the customers. Therefore, market segmentation
strategy is also called Focus Strategy.
5) Using an integrated strategy:
Scaling the adoption of improved varieties and quality seed among small holder
farmers must include both formal and informal seed systems. While the more formal
channels of a seed system remain central to scaling, evidence shows that
smallholder farmers source the majority of their seed from the informal system; they
plant, exchange and sell a wide range of varieties that fall outside the production and
distribution functions of the formal sector. Strategies for scaling seed systems, then,
require an integrated.. Integrated seed systems imply coordinated actions between
the formal and informal seed sectors.

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FUNCTIONAL LEVEL STRATEGIES

A functional level strategy is a short-term plan for a specific aspect of a business. It
may be an advertising campaign for a new product or service or outsourcing services
to an external third-party. For the purpose of strategic management, a functional
strategy has defined tasks, timeline, budget, resources and goals.
Today’s dynamic world forces organizations to fall back on multiple layers of
functional areas. It’s a more complex—but helpful—way to do business.
Technological advancements or even market crashes need to be accounted for
when you’re planning your corporate strategies. This is where functional strategies
come into the picture. They act as airbags in a crisis situation.
Implementation of a functional strategy lies in the hands of management. Experts
and specialists like chief officers and directors are responsible for delegating duties,
monitoring progress and following-up with their staff. This way everyone’s on the
same page about their objectives and goals.

There are six functional areas in an organization:

1) Production Strategy
2) Marketing
3) Finance
4) Human Resources
5) Technology and Equipment
6) Operations

1) Production strategies
Production of genetically pure and otherwise good quality pedigree seed is an
exacting task requiring high technical skills and comparatively heavy financial
investment. During seed production strict attention must be given to the maintenance
of genetic purity and other qualities of seeds in order to exploit the full dividends
sought to be obtained by introduction of new superior crop plant varieties. In other
words, seed production must be carried out under standardized and well-organized
condition principles.
 Selection of a Agro-climatic Region

A crop variety to be grown for seed production in an area must be adapted to the

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photoperiod and temperature conditions prevailing in that area.

 Selection of seed plot

The plot selected for seed crop must be free from volunteer plants, weed plants and
have good soil texture and fertility the soil of the seed plot should be comparatively
free from soil borne diseases and insects pests.
 Isolation of Seed crops

The seed crop must be isolated from other nearby fields of the same crops and the
other contaminating crops as per requirement of the certification standards.
 Preparation of Land

Good land preparation helps in improved germination, good stand establishment and
destruction of potential weeds. It also aids in water management and good uniform
irrigation.
 Selection of variety

The variety of seed production must be carefully selected, should possess disease
resistance, earliness, grain quality, a higher yielder, and adapted to the agroclimatic
conditions of the region.
 Seed treatment:

Depending upon the requirement the following seed treatment may be given
1) Chemical seed treatment.
2) Bacterial inoculation for the legumes.
3) Seed treatment for breaking dormancy.
 Time of planting

The seed crops should invariably be sown at their normal planting time. Depending
upon the incidence of diseases and pests, some adjustments, could be made, if
necessary.
 Seed Rate

Lower seed rates than usual for raising commercial crop is desirable because they
facilitate rouging operations and inspection of seed crops.

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 Method of sowing

The most efficient and ideal method of sowing is by mechanical drilling.

 )Depth of sowing

Depth of sowing is extremely important in ensuring good plant stand. Small seeds
should usually be planted shallow, but large seeds could be planted a little deeper.

 Rouging: Adequate and timely rouging is extremely important in seed

production. Rouging in most of the field crops may be done at many of the
following stages as per needs of the seed crop.
1) Vegetative / preflowering stage
2) Flowering stage
3) Maturity stage
 13 .Weed control: Good weed control is the basic requirement in producing
good quality seed. Weeds may cause contamination of the seed crop , in
addition to reduction in yield:
 14. Disease and insect control: Successful disease and insect control is
another important factor in raising healthy seed crops. Apart from reduction of
yield, the quality of seeds from diseased and insect damaged plants is
invariably poor.
 Nutrition:

In the nutrition of seed crops, nitrogen, phosphorus, potassium, and several other
elements play an important role for proper development of plants and seed. It is,
therefore, advisable to know and identify the nutritional requirements of seed crops
and apply adequate fertilizers.
 Irrigation

Irrigation can be important at planting for seed crops on dry soils to ensure good
uniform germination and adequate crop stands. Excess moisture or prolonged
drought adversely affects germination and frequently results in poor crop stands.
 Harvesting of Seed crops:

It is of great importance to harvest a seed crop at the time that will allow both the

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maximum yield and the best quality seed.

 Drying of seeds:

In order to preserve seed viability and vigor it is necessary to dry seeds to safe
moisture content levels.
 Storage of raw seeds: The best method of sowing seed for short periods is in
sacks or bags in ordinary buildings or godowns.

2) Marketing Strategy
Seed marketing should aim to satisfy the farmer's demand for reliable supply
of a range of improved seed varieties of assured quality at an acceptable price.
 To the retailer in the agricultural sector, for example, it is selling seed along
other inputs to the farmer.
 To the farmer it is simply selling what he produces on his farm. However
whatever the circumstances, a well-defined sequence of events has to take
place to promote the product and to put it in the right place, at the right time
and at the right price for a sale to be made.
 Too many people think of marketing solely in terms of the advertising and
selling of goods, whereas in reality marketing starts long before the goods
exist and continues long after they are sold. Therefore, for the marketing
process to be successful: the farmer consumer's needs must be satisfied; the
seed company's objectives must be realized.

Multilevel Distribution
The seed producing organization supplies a national distributor, wholesalers
or regional distributors who, in turn, supply sub-distributors or the retail outlets.
This system is characterized by:
 the supplier having no direct contact with the consumer
 products being strongly promoted in order to create demand
 Supplying seed to the distributors in sufficient time to achieve timely
availability at the retail level.

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 management ensuring that there is a good system of monitoring sales and

obtaining feedback from the consumer
 The distributor being interested only in the strongest selling lines.

If neither infrastructure nor the economy are well developed, national distributors
may simply not be available and the seed producer will have to supply seed to
regional wholesalers or distributors.
THE PROMOTIONAL ACTIVITIES
Resources invested in variety development and seed production will be
Wasted if farmers are not persuaded to use the improved varieties. All promotional
Activities involve sending messages to the distributors and consumers in order to
inform them about a company's products and help them to make their decision to
buy a particular variety or brand of seed.
Advertising
This includes newspapers, posters radio and advertisement.

3) Finance Strategy
When you have your corporate strategies down pat, you have to raise the required
finances. For a startup, it can be seed funding, investor money or bank financing.
Other financial strategies include capital budgeting and dividend strategies for equity
shareholders.
4) Human Resources Management
A Human Resource strategy is a business’s overall plan for managing its human
capital to align it with its business activities. The Human Resource strategy sets the
direction for all the key areas of HR, including hiring, performance appraisal,
development, and compensation. The HR strategy is thus a long-term plan that
dictates HR practices throughout the organization.
The overall business strategy is formulated based on the past and the present. It is a
result of what the company has been doing in the past and its current internal
capabilities. An often used tool to arrive at this strategy is the SWOT analysis.
The HR strategy is based on the organizational strategy. The HR strategy touches
on all the key areas in HR. These include recruitment, learning & development,
performance appraisal, compensation, and succession planning.

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The study deal with HR training in agricultural sectors in our organization. The main
objective of this study is how training can enhance employee’s knowledge, skill,
attitude and also goals & objectives in agricultural sector in India. It also included the
current needs of training for each target group of the employees to get maximum
output of human resources in agricultural sector in the country.

5) Technology and equipment

Technology is used to improve the wide types of production practices employed by
farmers. It makes use of hybrid seeds of selected variety of a single crop,
technologically advanced equipment and lots of energy subsidies in the form of
irrigation water, fertilizers and pesticides.
Technology used in seeds agriculture are :
Modern mechanized
Tractors
Origins of agriculture.
Participatory Technology Development.
Farm machinery.
Agrochemical.
Pest control.
Crop production.
6) Operation strategies
This functional level strategy defines the resources that you need for your business.
For a web design studio, you would need skilled graphic designers, software like
Dreamweaver or Sketch and the right equipment.

Product management.
Supply chain.
Inventory.
Forecasting.
Scheduling.
Quality.
Facilities planning and management.

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MARKET GROWING STRATEGIES

What is seed marketing?

Process by which seeds and associated services are valued and exchanged.
• It is much more than the physical distribution of seeds and providing
accompanying services.
• You need to understand the marketplace (needs of farmers in terms of crops,
varieties, packaging size, etc.)
• You need to fully meet the needs of the customers (satisfying the specific needs of
farmers).

Functions of seed marketers

1. Exchange or sale (buying and selling)
2. Physical supply (storage and transportation
3. Facilitation (market research, production planning, seed processing, packaging,
branding, promotion and sales).
Final goal of seed marketing
• Identify, satisfy and retain customers.
• Focus on the needs/desires of target markets and deliver better value than existing
competitors.
Differences between seed sale and marketing
• Selling is product focused and largely producer driven with the aim of maximizing
sales and profits.
• Seed marketing is based on needs of the farmer. These are reflected in production
planning, pricing, promotion,
seed distribution and receiving feedback after sale.
Marketing Concept
• Seed companies should strive to satisfy the needs and desires of their customers.
• The customer is Queen and comes first!

Elements of the marketing concept

• Target market. The market which gives your company the best returns on
investment as determined by market research.

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• Needs and demands of the target market. Farmer needs and demands in the
target market,
which determine the varieties and seeds to multiply.
• How to deliver value to the target market. The best ways or marketing strategies
to satisfy the target market.
Hard thinking!
• A producer must think hard how to determine the needs of the market and may
choose to do market research.
• A producer must decide which marketing strategy to adopt to satisfy the target
market.
Outcomes of the hard thinking
• Develop a marketing philosophy depending on your company structure.
Choose between settings up a separate marketing department, becoming entirely
customer oriented,
or using social contacts and personal communication.
• Do market research to identify right market segments, ascertain their size,
characteristics and specific needs.
• Identify the right varieties, charge the right price, get seed to right place at right
time, and create awareness, i.e., you achieve the right marketing mix.

Four controllable parameters in seed business:

– Product,
– Price,
– Place
– Promotion
• Commonly referred to as the 4Ps
• To succeed, any business must create have an appropriate mix of the 4Ps subject
to external constraints of the marketing environment.

Marketing Mix: (1) Product

Seed for sale must have the right characteristics (desired crop/variety and high
quality in terms of purity, germination capacity and health)

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Marketing Mix: (2) Price

Seed must be both affordable for famers and able to generate a reasonable profit
for the enterprise.
Marketing Mix: (3) Place
Seed must be in the right place at the right time (normally within easy reach of the
farmers and in an area where the enterprise is able to compete for market share).

Marketing Mix: (4) Promotion

Farmers made aware of the existence and availability of the seed through
appropriate messages.
Successful enterprises must combine all 4Ps to develop a marketing strategy.
For example:
Marketing strategy: Create a trusted brand
• Product: Maintain high quality by monitoring growers and obtaining only seeds
from the best plots.
• Price: Sell new seed at discount price to encourage more farmers to buy and try.
• Place: Deliver seed orders free to remote places.
• Promotion: Be honest and credible – label all packages with clear information as
required by farmers.
TARGET MARKET: Farmers
PRODUCT:
Variety: new, drought tolerant, high yielding, early maturing
Quality: Certified seed
Packaging: Excellent
Brand name: New
Labeling: Full
Guarantee: Assured

PRICE:
Retail price: 25% above grain price
Wholesale price: 3% less than retail price
Discounts: Buy 3, get 1 free

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PROMOTION:
Advertising: Radio& TV
Sales promotion: Posters, free samples (mini-kits),
Publicity: Seed fairs and field days
Personal selling: word of mouth.

PLACE:
Wholesalers: In large shopping centers
Retailers: At local markets
Agents: Door to door
Transport: Free delivery for bulk purchases
Other: Online shopping and mail order
Demand and Supply in Seed Markets
Demand and supply are 2 fundamental aspects of any seed market.
• Demand is the desire and willingness of farmers to buy a specific kind of seed.
• Supply is the desire and capacity of enterprises to produce and make available a
particular type of seed for sale.
Enterprises need a good understanding of demand and supply in order to make
smarter and better-informed marketing decisions for greater profitability.

Seed businesses require three major strategies to reach their goal: marketing,
production and financing. Most seed businesses are good at production; in fact, in
many cases it is the relatively easy aspect of a seed business. Financing a business
is difficult and working capital management is tough, but with sharp people it can be
done. The marketing side, however, is often the hardest, because selling seed is not
easy. So how do we make the marketing strategy effective? We start with a
definition: Marketing is the activity and process of connecting customers to products
and services through providing a value proposition that meets their needs and that
may fulfill their aspirations in exchange for cash or goods. This shows that marketing
is complex. In an effort to simplify this strategy, we propose a logical framework,
around six-Ds, as follows.

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Marketing involves 6 Ds:

1. Demand Estimation
First, it is necessary to determine who the customers are, how they may be divided
into distinguishable segments based on their characteristics and product needs, and
what their problems are that they need solutions for or what aspirations they have
that may be fulfilled. From this, an analysis needs to be made to estimate the
effective demand for the product or services. This may be done through a market
survey or conventional wisdom of the market situation, and should result in three
pieces of information: defined customer segments, specific product requirements
and the estimated quantity of products required in a certain time-frame.

2. Design of Products and Services

The second "D" is the process of defining and developing products and services to
meet customer needs and wants. While the product may have been described in the
first "D", the second "D" is concerned with creating that product, through research
and development. The starting point is always understanding the customer
requirements, then set to work on the right issues, with the right tools, using effective
methods to produce the right product. Rarely will the perfect product be produced,
and so at some point in development, the product must be launched into the market.
Thereafter, further tweaks may be made to improve and enhance the product
features and characteristics.

3. Desire Creation
Customers need to be made aware of the products and services available from a
company so that they may become willing to make the purchase. Creating a desire
in customers to buy is through promotion and persuasion of the value of the products
and services. This begins with informing the mind, through the provision of
information about the product characteristics, benefits and value. This needs to lead
to a belief and trust in the product that may result in a sale. Head-knowledge is
insufficient. There must be heart-felt desire created, along with trust. For farmers and
seed, this often takes time and requires experiential acquaintance with the plant and
harvest that will result from the seed.

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4. Deliver Products and Services

The availability of products close to customers will help facilitate sales. Therefore, a
seed company needs to establish a distribution network to deliver products and
services so that they are easily
available to customers in a convenient and timely manner. A common complaint
heard from farmers is that companies or organizations promote new varieties but the
seed is not available in the market. Desire creation must be followed closely with or
be in parallel with product provision.

5. Deal making and management

Marketing strategies have one goal and that is making sales. The final stages around
the point of sale are critical, and involve establishing the modalities and completing
the actual exchange of goods and services for cash or kind. This may take a short or
long time depending on the nature of the deal, but in any case it is a sensitive and
emotional act on the part of a farmer to buy seed. It is not just about price, but value
- the more value a farmer places on the seed the less it is about price. The farmer is
buying his/her future 3- to 6- months hence, with many risks and uncertainties to be
faced in the field and market. So, special skill is required to lead a farmer through the
deal making stage to complete the sale. Emphasis must be on the value proposition
of the product as a problem solver or aspiration fulfiller, and this is where the sales'
person and company must be 100 % confident in their product and its performance.

6. Delight customers
Because seed is just the beginning, and the final outcome of the seed will only be
appreciated by the customer many months after purchase, seed marketing requires
much after-sales' service. Not only must the customer be delighted with the physical
quality of the seed at purchase time and planting, but the seed company must put
effort into protecting and promoting product performance in the field, so that the
farmer is able to achieve the best result within the constraints of the environment.
Follow-up with customers to satisfy and delight customer expectations of the
products and services they have purchased will bode well for brand establishment
and future sales.

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COMPETITOR’S STRATEGIES:

Porter Five Forces is a holistic strategy framework that took strategic decision away
from just analyzing the present competition. Porter Five Forces focuses on - how
Seed Company can build a sustainable competitive advantage in Farm Products
industry. Managers at Seed Company can not only use Porter Five Forces to
develop a strategic position within Farm Products industry but also can explore
profitable opportunities in whole Consumer Goods sector.

Seed Company Porter Five (5) Forces Analysis for Consumer Goods Industry

Threats of New Entrants

New entrants in Farm Products brings innovation, new ways of doing things and put
pressure on Seed Company through lower pricing strategy, reducing costs, and
providing new value propositions to the customers. Seed Company has to manage
all these challenges and build effective barriers to safeguard its competitive edge.

How Seed Company can tackle the Threats of New Entrants

 By innovating new products and services. New products not only brings new
customers to the fold but also give old customer a reason to buy Seed
Company‘s products.
 By building economies of scale so that it can lower the fixed cost per unit.
 Building capacities and spending money on research and development. New
entrants are less likely to enter a dynamic industry where the established
players such as Seed Company keep defining the standards regularly. It
significantly reduces the window of extraordinary profits for the new firms thus
discourage new players in the industry.

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Bargaining Power of Suppliers

All most all the companies in the Farm Products industry buy their raw material from
numerous suppliers. Suppliers in dominant position can decrease the margins Seed
Company can earn in the market. Powerful suppliers in Consumer Goods sector use
their negotiating power to extract higher prices from the firms in Farm Products field.
The overall impact of higher supplier bargaining power is that it lowers the overall
profitability of Farm Products.

How Seed Company can tackle Bargaining Power of the Suppliers

 By building efficient supply chain with multiple suppliers.

 By experimenting with product designs using different materials so that if the
prices go up of one raw material then company can shift to another.
 Developing dedicated suppliers whose business depends upon the firm. One
of the lessons Seed Company can learn from Wal-Mart and Nike is how these
companies developed third party manufacturers whose business solely
depends on them thus creating a scenario where these third party
manufacturers have significantly less bargaining power compare to Wal-Mart
and Nike.

Bargaining Power of Buyers

Buyers are often a demanding lot. They want to buy the best offerings available by
paying the minimum price as possible. This put pressure on Seed Company
profitability in the long run. The smaller and more powerful the customer base is of
Seed Company the higher the bargaining power of the customers and higher their
ability to seek increasing discounts and offers.

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How Seed Company can tackle the Bargaining Power of Buyers

 By building a large base of customers. This will be helpful in two ways. It will
reduce the bargaining power of the buyers plus it will provide an opportunity to
the firm to streamline its sales and production process.
 By rapidly innovating new products. Customers often seek discounts and
offerings on established products so if Seed Company keep on coming up
with new products then it can limit the bargaining power of buyers.
 New products will also reduce the defection of existing customers of Seed
Company to its competitors.

Threats of Substitute Products or Services

When a new product or service meets a similar customer needs in different ways,
industry profitability suffers. he threat of a substitute product or service is high if it
offers a value proposition that is uniquely different from present offerings of the
industry.

How Seed Company can tackle the Treat of Substitute Products / Services

 By being service oriented rather than just product oriented.

 By understanding the core need of the customer rather than what the
customer is buying.
 By increasing the switching cost for the customers.

Rivalry among the Existing Competitors

If the rivalry among the existing players in an industry is intense then it will drive
down prices and decrease the overall profitability of the industry. Seed Company
operates in a very competitive Farm Products industry. This competition does take
toll on the overall long term profitability of the organization.

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How Seed Company can tackle Intense Rivalry among the Existing Competitors in
Farm Products industry

 By building a sustainable differentiation

 By building scale so that it can compete better
 Collaborating with competitors to increase the market size rather than just
competing for small market.

Implications of Porter Five Forces on Seed Company

By analyzing all the five competitive forces Seed Company strategists can gain a
complete picture of what impacts the profitability of the organization in Farm
Products industry. They can identify game changing trends early on and can swiftly
respond to exploit the emerging opportunity. By understanding the Porter Five
Forces in great detail Seed Company managers can shape those forces in their
favour.

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PROJECT SCOPE MANAGEMENT

What is project scope management?

Project scope management is a process that helps in determining and documenting

the list of all the project goals, tasks, deliverables, deadlines, and budgets as a part
of the planning process. In project management, it is common for a big project to
have modifications along the way. With the scope in the project management defined
right in the beginning, it becomes much easier for teams to manage and make the
required changes.

Project scope management process

Let’s discuss the six process involved in accurately identifying the project scope
management:

1. Planning scope management

In the first process in project scope management, you create a scope plan document
that you can refer to in the later stages. The document mainly helps in defining,
managing, validating, and controlling the project’s scope.

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It includes:

1) Detailed project scope statement

2) Breakdown of all the project requirements

3) Expected project deliverables

4) Change control process

5) The document doesn’t have to be very detailed, it just has to fit the purpose. You
can also use a previous project’s scope management plan as a reference for this.

2. Collecting requirements

The next step is to workout stakeholder requirements and expectations. You will be
required to document all the project requirements, expectations, budgets, and
deliverables through interviews, surveys, and focus groups.

This is a rather important step because more often than not, stakeholders can have
unrealistic requirements or expectations and the project managers would be required
to step in to find a solution that is acceptable by everyone from avoiding project
delays

At the end of the collection requirements stage, you should have the following:

1) Functional as well as non-functional requirements

2) Stakeholder requirements

3) Business requirements

4) Support and training requirements

5) Project requirements

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3. Defining the scope

At this step, you need to turn your requirements into a well-detailed description of the
service or product that you are trying to deliver through the project. You will then
have a project scope statement that you can then refer to throughout your project.

While it is important to list what is in the scope of the project, it is just as important to
Note down what is out of the project scope. Any kind of inclusions to the scope
would then have to go through the entire change control process to ensure the team
is only working on things that they are supposed to work on.

With a defined scope, you get a reference point for your project team and anyone
else involved. In case there is something that is not involved in the scope, it doesn’t
need to be completed by the team.

4. Making a work breakdown structure

A work breakdown structure (WBS) is a document that breaks down all the work
which needs to be done in the project and then assigns all the tasks to the team
members. It lists the deliverables that need to be completed and their respective
deadlines as well.

You can use project management software for this step of the process to assign
and prioritize tasks which will make it easier to track the entire progress of the project
and avoid any unnecessary bottlenecks.

5. Validating scope

In this step, the scope and deliverables that you have recorded need to be sent to
project executives and stakeholders to get the necessary approvals. Scope
validation needs to be done before starting the project to ensure that if something
goes wrong then it is easy to find where it went wrong.

Project managers need to ensure that as the project begins, it always stays within
the defined scope. In case there are some things that need to change, then the
proper change control process should be followed.

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CHAPTER 5
EVALUATION PROCESS

Designing and Evaluation Plan

Agricultural engineers use their educational backgrounds in agriculture and biological

engineering to design the machinery used within the food and farming industries.
Designing the seed planter machine. It should be easily for simple farm, design and
technology. The manually operated template row planter is designed and developed
to improve planting efficiency and reduce drudgery involved in manual planting
method. Seed planting is also possible for different size of seed at variable depth
and space between two seed. Also it increased seed planting, seed fertilizer
placement accuracies. 82

Seed metering mechanism which eliminates completely attachments such as

pulleys, belts system, thereby eliminating complexities which increase the cost, and
increasing efficiency at a highly reduced cost which is the focus of this project
work.82
All facilities to be provided in automatic seed sowing machine. In seed sowing
machine system they are used battery powered wheels and dc motor inbuilt in these
wheels. In this system Seed storage tank are used .when the seeds are empty it

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detect the level of storage seed and indicate the alarm. When any obstacle comes in
the in-front of machine or divert path the seed sowing machine can detect this
obstacle very easily. The end of system machine reached and it create alarm. This
system provides to all the facility which can work efficiently. Also the farmer can sow
the seed very much easily. As well as time will be save. 83
Design thinking in building agricultural equipment emphasize on understanding the
needs of the customers, farmers, workers and machine operators, to convert the
ideas through a usable approach to develop a problem-solving activity or machine.
The current course covers the step by step procedure to make agricultural
equipment. Introduction to design, manufacturing, and product characteristics are
catered in the starting weeks. This is followed by the design thinking process where
creativity holds the key.
Evaluation
Strategy evaluation is that phase of the strategic management process in which
manager tries to assure that the strategic choice is properly implemented and is
meeting the objectives of the enterprise.
Within this complex background, evaluation in the agricultural seed sector may
attempt to:
 Re-examine, in the light of project developments, the adequacy of the project
logic laid out in planning and appraisal documents
 Determine the adequacy of the project to address and overcome the
situational constraints and thereby promote the desired results
 Determine deficiencies in results - and the reasons for them - by comparing
actual achievements with those expected
 Assess the efficiency and effectiveness of project activities and how these
were managed
 Determine the impacts of the project - both intended and unintended
 Examine the results of the project by comparing winners and losers
 Determine production increases and the reasons for these
 Examine the economic efficiency of the project
 Present the lessons learned from project implementation and the
recommendations that follow from them.

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DESIGNING DATA COLLECTION TOOLS

Data collection tools refer to the devices/instruments used to collect data, such as a
paper questionnaire or computer-assisted interviewing system. Case Studies,
Checklists, Interviews, Observation sometimes, and Surveys or Questionnaires are
all tools used to collect data
Before undertaking market research, it is essential to decide what you need to know
and why. For data collection, there are two types of market research: primary and
secondary.
• Primary research – undertaken when companies wish to gather data for their own
use. The objective of primary research is to obtain new information (not otherwise
available) about customers’ attitudes, preferences, purchasing habits, tastes and
behavior.
• Secondary research – involves searching for existing information, such as
demographic data and industrial statistics that have already been collected and
possibly analyzed.
Primary market research tools
Several tools are available to collect first-hand data or information from potential
customers. Most businesses use one or more of five basic methods: questionnaires
and sample surveys, focus groups, personal or key informant interviews, direct
observation, and field trials.
Surveys:
Surveys are perhaps the best known and most widely used method of market
research.
The conditions for an effective survey are:
• Relatively large population to investigate;
• Specific parameters to measure; and
• Desire for objectivity (or quantitativeness).
A survey can be utilized to:
• gauge customer satisfaction;
• measure customer behavior;
• determine prices; and • gather facts.
Measuring customer satisfaction is particularly important because satisfaction can
be a good indicator of loyalty and future behavior.
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Focus groups:
A survey may not be a suitable research tool when you are still exploring a topic and
do not yet know the specific or correct questions to include in your questionnaire. A
focus group discussion is a means to gain a better understanding of the topic,
specifically:
• obtain information on general customer attitudes;
• understand why customers would purchase a particular product; and
• learn what the desired outcome would be from purchasing a product.
A focus group is an effective tool to use prior to a survey because it can inform the
survey questions and make them more specific and targeted.
Interviews:
Like focus groups, key informant and personal interviews use mostly semi structured
discussions. They are based on open-ended questions and are useful for exploratory
research.
The interview format varies depending on its objective. An interview can be a free-
flowing conversation on a given topic, or highly structured with very specific
questions. It usually lasts about an hour and is often recorded. Both focus groups
and personal interviews provide more subjective data than questionnaire surveys.

Direct observation:
Individual responses to surveys and focus groups do not always match the actual
behavior of customers. Those interviewed tend to act differently because they know
they are being observed or they may tell the interviewer what they think he or she
wants (or in some cases, does not want) to hear. On the contrary, when consumers
are observed in action in their natural setting, such as a store, it is possible to see
how they buy a product and therefore gain a more accurate picture of their shopping
patterns or behavior.
Field trials:
Another form of observational testing is the field trial. A new product is placed in
selected outlets to test customer response under real-life selling conditions. The
observations made are useful for modifying the product, adjusting prices, or
improving the packaging.
Secondary market research tools:

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Before undertaking primary research to obtain new or first-hand information, it is

important to ask: Does the desired information already exist in some form? The
results and conclusions of any related research may be useful, and resources must
not be wasted seeking information that is already available. Secondary research is
therefore simply the process of examining existing research and data. It is usually
less expensive and takes less time to gather than primary research.
Secondary market research data can be obtained from internal and external sources
:
Internal sources:
Internal sources are data that already exist within an enterprise or useful information
already collected by the company relevant to marketing activities. Existing
enterprises provide numerous sources of information,
For example:
• Internal publications
• Web sites
• Historical business records, including:
1. balance sheets (provide figures and statistics useful for assessing business
strength, such as the company’s liquidity level for meeting payment
obligations);
2. profit and loss statements (supply information on different kinds of products
and their profit potential);
3. inventory records (provide figures on the efficiency of inventory management
in line with customer demand for various products);
4. sales figures (may be analyzed to investigate issues including the
effectiveness of promotional campaigns and efforts to increase market share)
and purchase receipts.

External sources:
External sources refer to the wide range of sources existing outside the business’s
environment. They provide data collected by other businesses or organizations.

• Government or public offices. Government agencies gather a wide range of

useful information on many subjects across different sectors and of relevance to

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market research, including agricultural statistics, production and trade statistics,

social surveys, and family expenditure surveys. Government-designated units or
agencies often publish official statistics for public use. Many government
departments also publish technical reports.
• International research and development agencies or organizations. CGIAR
Centers and international agencies (e.g. WB, IMF, FAO, UNDP and IFAD) produce
secondary data and technical reports useful for market research.
• Private sector and other commercial services. Other businesses may produce
market research reports and additional publications containing information on market
structure, consumer profiles and demand analysis.
• Universities and other educational institutions. Many university researchers
and students collect and analyze research information of use to businesses.
• Non-governmental and civil society organizations. NGOs and CSOs produce
annual reports and other materials that may contain relevant data.
• Peer-reviewed scholarly journals. Academic journals generally contain articles
with original research prepared by experts in specific fields. The articles usually
undergo a peer review for accuracy, originality and relevance.
• Reference books. Handbooks, manuals, encyclopedias, dictionaries and other
reference materials can provide useful secondary information on relevant market
research topics.
• The Internet. The Internet is the most widely used secondary market research
tool. However, it has the disadvantage of including numerous non credible sources
providing incomplete information.

Market research (both primary and secondary) collects two kinds of information:
quantitative and qualitative:
Quantitative data:
Quantitative research is numerically oriented, requires measurement of market
phenomena (e.g. frequency of customer return, sales figures, product sales
numbers, market trends etc.) and often involves statistical analysis. It is based on
hard facts and statistical data rather than the feelings and opinions of customers.
Quantitative data are normally obtained through market research surveys, involving
structured questionnaires to collect data. For example: A seed company asks

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farmers to rate its overall service as excellent (4), good (3), poor (2) or very poor (1).
The results provide quantitative information that can be analyzed statistically.
Qualitative data:
Qualitative data are based on opinions and feelings of customers with regard to a
business’s products or services. Qualitative research tries to probe into customers’
minds and discover what is considered to be lacking in a particular product or
whether a product is liked or not.
A widely used research tool for acquiring qualitative data is the face-to-face
interview. For example: A market researcher approaches a customer who has
purchased a particular type of peanut seed and asks why they chose that type of
peanut.

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COLLECTING OF DATA
Data collection is defined as the procedure of collecting, measuring and analyzing
accurate insights for research using standard validated techniques. A researcher can
evaluate their hypothesis on the basis of collected data.
Methods of Collection Data
 Primary Data
 Secondary Data

 Primary Data
Primary data or raw data is a type of information that is obtained directly from
the first-hand source through experiments, surveys or observations. The
primary data collection method is further classified into two types. They
are
 Quantitative Data Collection Methods
 Qualitative Data Collection Methods

 Quantitative Data Collection Methods

This method is cheaper than qualitative data collection methods and it can be
applied in a short duration of time.
 Qualitative Data Collection Methods

This qualitative data collection method includes interviews, questionnaires,

observations, case studies, etc. There are several methods to collect this type of
data. They are

 Observation Method

Observation method is used when the study relates to behavioral science. This
method is planned systematically. It is subject to many controls and checks.

 Interview Method

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The method of collecting data in terms of oral or verbal responses. It is achieved in

two ways, such as

 Personal Interview – In this method, a person known as an interviewer is

required to ask questions face to face to the other person. The personal
interview can be structured or unstructured, direct investigation, focused
conversation, etc.

 Telephonic Interview – In this method, an interviewer obtains information by

contacting people on the telephone to ask the questions or views orally.

 Questionnaire Method

In this method, the set of questions are mailed to the respondent. They should read,
reply and subsequently return the questionnaire. The questions are printed in the
definite order on the form. A good survey should have the following features:
 Short and simple

 Should follow a logical sequence

 Provide adequate space for answers

 Avoid technical terms

 Should have good physical appearance such as color, quality of the paper to
attract the attention of the respondent.

 Schedules

This method is similar to the questionnaire method with a slight difference. The
enumerations are specially appointed for the purpose of filling the schedules. It
explains the aims and objects of the investigation and may remove
misunderstandings, if any have come up. Enumerators should be trained to perform
their job with hard work and patience.

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DATA /RESULT ANALYZING - PROCESS

Data Analysis is a process of collecting, transforming, cleaning, and modeling data

with the goal of discovering the required information. The results so obtained are
communicated, suggesting conclusions, and supporting decision-making. Data
visualization is at times used to portray the data for the ease of discovering the
useful patterns in the data. The terms Data Modeling and Data Analysis mean the
same.

Data Analysis Process consists of the following phases that are iterative in nature −

 Data Requirements Specification

 Data Collection

 Data Processing

 Data Cleaning

 Data Analysis

 Communication

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Data Requirements Specification

The data required for analysis is based on a question or an experiment. Based on

the requirements of those directing the analysis, the data necessary as inputs to the
analysis is identified (e.g., Population of people). Specific variables regarding a
population (e.g., Age and Income) may be specified and obtained. Data may be
numerical or categorical.

Data Collection

Data Collection is the process of gathering information on targeted variables

identified as data requirements. The emphasis is on ensuring accurate and honest
collection of data. Data Collection ensures that data gathered is accurate such that
the related decisions are valid. Data Collection provides both a baseline to measure
and a target to improve.

Data is collected from various sources ranging from organizational databases to the
information in web pages. The data thus obtained, may not be structured and may
contain irrelevant information. Hence, the collected data is required to be subjected
to Data Processing and Data Cleaning.

Data Processing

The data that is collected must be processed or organized for analysis. This
includes structuring the data as required for the relevant Analysis Tools. For
example, the data might have to be placed into rows and columns in a table within a
Spreadsheet or Statistical Application. A Data Model might have to be created.

Data Cleaning

The processed and organized data may be incomplete, contain duplicates, or

contain errors. Data Cleaning is the process of preventing and correcting these
errors. There are several types of Data Cleaning that depend on the type of data. For
example, while cleaning the financial data, certain totals might be compared against
reliable published numbers or defined thresholds. Likewise, quantitative data
methods can be used for outlier detection that would be subsequently excluded in

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analysis.

Data Analysis

Data that is processed, organized and cleaned would be ready for the analysis.
Various data analysis techniques are available to understand, interpret, and derive
conclusions based on the requirements. Data Visualization may also be used to
examine the data in graphical format, to obtain additional insight regarding the
messages within the data.

Statistical Data Models such as Correlation, Regression Analysis can be used to

identify the relations among the data variables. These models that are descriptive of
the data are helpful in simplifying analysis and communicate results.

The process might require additional Data Cleaning or additional Data Collection,
and hence these activities are iterative in nature.

Communication

The results of the data analysis are to be reported in a format as required by the
users to support their decisions and further action. The feedback from the users
might result in additional analysis.

The data analysts can choose data visualization techniques, such as tables and
charts, which help in communicating the message clearly and efficiently to the
users. The analysis tools provide facility to highlight the required information with
color codes and formatting in tables and charts.

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REPORT FINDINGS:

The results section of the research paper is where you report the findings of your
study based upon the information gathered as a result of the methodology [or
methodologies] you applied. The results section should simply state the findings,
without bias or interpretation, and arranged in a logical sequence. The results
section should always be written in the past tense. A section describing results
[a.k.a., "findings"] is particularly necessary if your paper includes data generated
from your own research.

Steps in Report Writing in Research Methodology

Research reports are the product of slow, painstaking, accurate inductive work. The
usual steps involved in writing report are:

a. logical analysis of the subject-matter;

b. preparation of the final outline;
c. preparation of the rough draft;
d. rewriting and polishing;
e. preparation of the final bibliography; and
f. Writing the final draft.
Though all these steps are self explanatory, yet a brief mention of each one of these
will be appropriate for better understanding.

Logical analysis of the subject matter: It is the first step which is primarily
concerned with the development of a subject. There are two ways in which to
develop a subject
a. logically and
b. Chronologically.
The logical development is made on the basis of mental connections and
associations between the one thing and another by means of analysis. Logical
treatment often consists in developing the material from the simple possible to the
most complex structures. Chronological development is based on a connection or
sequence in time or occurrence. The directions for doing or making something
usually follow the chronological order.

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Preparation of the final outline: It is the next step in writing the research report
“Outlines are the framework upon which long written works are constructed. They
are an aid to the logical organization of the material and a reminder of the points to
be stressed in the report.”
Preparation of the rough draft: This follows the logical analysis of the subject and
the preparation of the final outline. Such a step is of utmost importance for the
researcher now sits to write down what he has done in the context of his research
study. He will write down the procedure adopted by him in collecting the material for
his study along with various limitations faced by him, the technique of analysis
adopted by him, the broad findings and generalizations and the various suggestions
he wants to offer regarding the problem concerned.
Rewriting and polishing of the rough draft: This step happens to be most difficult
part of all formal writing. Usually this step requires more time than the writing of the
rough draft. The careful revision makes the difference between a mediocre and a
good piece of writing. While rewriting and polishing, one should check the report for
weaknesses in logical development or presentation. The researcher should also “see
whether or not the material, as it is presented, has unity and cohesion; does the
report stand upright and firm and exhibit a definite pattern, like a marble arch? Or
does it resemble an old wall of moldering cement and loose brick.” In addition the
researcher should give due attention to the fact that in his rough draft he has been
consistent or not. He should check the mechanics of writing—grammar, spelling and
usage.
Preparation of the final bibliography: Next in order comes the task of the
preparation of the final bibliography. The bibliography, which is generally appended
to the research report, is a list of books in some way pertinent to the research which
has been done. It should contain all those works which the researcher has
consulted. The bibliography should be arranged alphabetically and may be divided
into two parts; the first part may contain the names of books and pamphlets, and the
second part may contain the names of magazine and newspaper articles. Generally,
this pattern of bibliography is considered convenient and satisfactory from the point
of view of reader, though it is not the only way of presenting bibliography. The entries
in bibliography should be made adopting the following order:

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For books and pamphlets the order may be as under:

1. Name of author, last name first.

2. Title, underlined to indicate italics.
3. Place, publisher, and date of publication.
4. Number of volumes.
Example
Kothari, C.R., Quantitative Techniques, New Delhi, Vikas Publishing House Pvt. Ltd.,
1978.

For magazines and newspapers the order may be as under:

1. Name of the author, last name first.

2. Title of article, in quotation marks.
3. Name of periodical, underlined to indicate italics.
4. The volume or volume and number.
5. The date of the issue.
6. The pagination.

Example
Robert V. Roosa, “Coping with Short-term International Money Flows”, the
Banker, London, September, 1971, p. 995.

The above examples are just the samples for bibliography entries and may be used,
but one should also remember that they are not the only acceptable forms. The only
thing important is that, whatever method one selects, it must remain consistent.

Writing the final draft: This constitutes the last step. The final draft should be
written in a concise and objective style and in simple language, avoiding vague
expressions such as “it seems”, “there may be”, and the like ones. While writing the
final draft, the researcher must avoid abstract terminology and technical jargon.
Illustrations and examples based on common experiences must be incorporated in

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the final draft as they happen to be most effective in communicating the research
findings to others. A research report should not be dull, but must enthuse people and
maintain interest and must show originality. It must be remembered that every report
should be an attempt to solve some intellectual problem and must contribute to the
solution of a problem and must add to the knowledge of both the researcher and the
reader.

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PLANNING PROGRAM CHANGES

Once managers and an organization commit to planned change, they need to create
a logical step‐by step approach in order to accomplish the objectives. Planned
change requires managers to follow an eight‐step process for successful
implementations, which is illustrated in Figure 1.

1. Recognize the need for change. Recognition of the need for change
may occur at the top management level or in peripheral parts of the
organization. The change may be due to either internal or external forces.

2. Develop the goals of the change. Remember that before any action is
taken, it is necessary to determine why the change is necessary. Both
problems and opportunities must be evaluated. Then it is important to
define the needed changes in terms of products, technology, structure,
and culture.

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3. Select a change agent. The change agent is the person who takes
leadership responsibility to implement planned change. The change
agent must be alert to things that need revamping, open to good ideas,
and supportive of the implementation of those ideas into actual practice.

4. Diagnose the current climate. In this step, the change agent sets about
gathering data about the climate of the organization in order to help
employees prepare for change. Preparing people for change requires
direct and forceful feedback about the negatives of the present situation,
as compared to the desired future state, and sensitizing people to the
forces of change that exist in their environment.

5. Select an implementation method. This step requires a decision on the

best way to bring about the change. Managers can make themselves
more sensitive to pressures for change by using networks of people and
organizations with different perspectives and views, visiting other
organizations exposed to new ideas, and using external standards of
performance, such as competitor's progress.

6. Develop a plan. This step involves actually putting together the plan, or
the “what” information. This phase also determines the when, where, and
how of the plan. The plan is like a road map. It notes specific events and
activities that must be timed and integrated to produce the change. It also
delegates responsibility for each of the goals and objectives.

7. Implement the plan. After all the questions have been answered, the
plan is put into operation. Once a change has begun, initial excitement
can dissipate in the face of everyday problems. Managers can maintain
the momentum for change by providing resources, developing new
competencies and skills, reinforcing new behaviors, and building a
support system for those initiating the change.

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8. Follow the plan and evaluate it. During this step, managers must
compare the actual results to the goals established in Step 4. It is
important to determine whether the goals were met; a complete follow‐up
and evaluation of the results aids this determination. Change should
produce positive results and not be undertaken for its own sake.

Keep in mind that a comprehensive model of planned change includes a set of

activities that managers must engage in to manage the change process effectively.
They must recognize the need for change, motivate change, create a vision, develop
political support, manage the transition, and sustain momentum during the change.

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CHAPTER 6
5 Stages of Industry Growth

2021 2022 2024 2029 2039

1) Development
2) Startup
3) Growth
4) Expansion
5) Maturity

Stage 1: Development stage

This is the very beginning of the business lifecycle, before your startup is even
officially in existence. You’ve got your business idea and you are ready to take the
plunge. But first you must assess just how viable your startup is likely to be. At this
stage, you should garner advice and opinion as to the potential of your business idea
from as many sources as possible: friends, family, colleagues, business associates,

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or any industry specialists you may have access to. Ultimately the success of your
business will come down to many factors– including your own abilities, the readiness
of the market you wish In some ways, this is the soul-searching phase. It’s where
you take a step back and consider the feasibility of your business idea, and also ask
yourself if you have what it takes to make it a success.

Stage 2: Startup stage

Once you have thoroughly canvassed and tested your business idea and are
satisfied that it is ready to go, it’s time to make it official and launch your startup.
Many believe this is the riskiest stage of the entire lifecycle. In fact, it is believed that
mistakes made at this stage impact the company years down the line, and are the
primary reason why 25% of startups do not reach their fifth birthday.
Adaptability is key here, and much of your time in this stage will be spent tweaking
your products or services based on the initial feedback of your first customers. It can
even get to the point where you are making so many changes to your offering that
you start to feel a bit of confusion. That’s just noise, and the main advice here is to
power through the blurriness, because extreme iterations upfront will naturally seem
confusing. Rest assured the clarity will once again come.

Stage 3: Growth stage

If you’re at this stage, your business should now be generating a consistent source
of income and regularly taking on new customers. Cash flow should start to improve
as recurring revenues help to cover ongoing expenses, and you should be looking
forward to seeing your profits improve slowly and steadily.
The biggest challenge for entrepreneurs in this stage is dividing time between a
whole new range of demands requiring your attention– managing increasing levels of
revenue, attending to customers, dealing with the competition, accommodating an
expanding workforce, etc.

Stage 4: Expansion
At this stage you might feel there is almost a routine-like feel to running your
business. Staff is in place to handle the areas that you no longer have the time to
manage (nor should you be managing), and your business has now firmly

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established its presence within the industry. Here you might start to think about
capitalizing on this certain level of stability by broadening your horizons with
expanded offerings and entry into new geographies.
Businesses in this stage often see rapid growth in both revenue and cash flow as the
blueprint has now been established, but be warned about getting too comfortable. In
business, if you are not moving forward you are moving backwards, and without a
constant, almost nervous itch or desire to expand, complacency can set in, and you
might get caught off guard.

Stage 5: Maturity
Having navigated the expansion stage of the business lifecycle successfully, your
company should now be seeing stable profits year-on-year. While some companies
continue to grow the top line at a decent pace, others struggle to enjoy those same
high growth rates.
It could be said that entrepreneurs here are faced with two choices: push for further
expansion, or exit the business. If you decide to expand further, you will need to ask
yourself the same questions you did at the expansion stage: Can the business
sustain further growth? Are there enough opportunities out there for expansion? Is
your business financially stable enough to cover an unsuccessful attempt at
expansion?

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CONCLUSION
The entire project was good opportunity to know about the Producing agriculture
seed for cultivation "ANNADATA AGRO SEEDS" The products that we are
producing are jawarseeds, Peanutseeds, Bazara and ghevunseeds. Seeds are the
basic and most critical input for sustainable agriculture. Therefore our major concern
and focus is to produce quality seed to take more and more from less and less land.
Seeds are the vehicle for delivering the improvements in a crop to the farmer’s field.
They are a critical input in agricultural production. Seeds are unique in that they must
remain alive and healthy when they are used and they are also the input that farmers
can produce by themselves.
The agricultural marketing plays a vital role in easy way agro produce distribution to
the customers. Like all the marketing activities, it also aims in profit making. It helps
the farmers to reach their customers within very short lead time.Our products will
supply by Multilevel Distribution and advertising in newspaper, radio and poster.
The agricultural sector is of vital importance for the region. It is undergoing a process
of transition to a market economy, with substantial changes in the social, legal,
structural productive and supply set-ups, as is the case with all other sectors of the
economy. These changes have been accompanied by a decline in agricultural
production for most countries, and have affected also the national seed supply
sectors of the region.

In 1st phase we study about the:

Marketing Strategies, Finance strategies, Project analysis, Markings situation,

objective, Vision and Mission, Human resources Strategies, requirement of
machinery, plan, long term and short goals and PEST analysis.

Then in 2 phases we study about several of Strategies that are:

Corporate strategies, Business level strategies, Functional level strategies,

Marketing growing Strategies, Strategies when strong competitors comes into the
market and Production strategies

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And In last 3rd and 4th phase evaluation process and growth stages of organization
are discussed:

Designing evaluation, Designing data collection tools, Collection data, Analysis

results, Reporting findings, Planning program changes and 5 stages of industry
Growth.

The agricultural sector is highly dependent on the availability and quality of seeds for
a productive harvest. The response of all other inputs depends on quality of seeds to
a large extent and estimated 15 – 20% contribution of quality seed alone to the total
production which is depending upon the crop and it can be further raised up to 45%
with efficient management of other inputs.

Due to the relatively low demographic pressure projected for the future, the presence
of some favourable types of climates and other positive factors, including a very wide
formal seed supply sector, it should be possible to overcome problems of food
insecurity in the region as a whole, and even to use this region to provide food to
other food-deficient regions. Opportunities must therefore be created to reach these
results.

In order to address the main constraints affecting the development of the national
and regional seed supplies that are mentioned here, the region requires integrated
efforts by all national and international stakeholders and institutions involved in seed
supply and plant genetic resource management. On practical issues, lessons
learned by some countries could be shared with other countries; e.g. on how to
progress with the transition or how to recognize the most immediate needs of
farmers. Appropriate policies should also be established, at various levels, in order to
facilitate seed investment and development in the region.

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