Madhya Pradesh Shyama Prasad

Mukherjee RuRBAN Mission

CI based sustainable business

model for Agro-park
Cluster – Simrol, Dist - Indore
Presented by-
Guided by Young Professional
Shubham Barik
Parikhit Mehta
IRMA
 Introduction
What is an Agro Park?

# An establishment encompassing various units pertaining

to agriculture and allied sectors in one location.

# The idea behind setting up an Agro park is upliftment of

primary producers by skill development, increasing
productivity with the help of technology and increasing
income by value addition.

# The activities conducted in an Agro park can range from

training of producers to packaging of food products,
depending on need.
Objective & Scope of the project

Objective Scope
To come up with CI based The scope of the project was
sustainable business model to run limited to Simrol cluster.
the Agro-park.
 Simrol
About the Cluster

‘Simrol’ Cluster comes under

the jurisdiction of Mhow
tehsil in Indore district. It is a
non-tribal cluster and has
predominant rural- urban
character due to its proximity
with the city of Indore (22
km) and the fact that IIT
Indore is also situated in
Simrol. The cluster has an
area of 88.94 Sq. KM.
 Simrol
About the Cluster Sl No.
Gram Panchayat Predominant agri. Produce Population (2011)

Wheat,
5 Gram Panchayats Simrol Soybean,
10 villages 1 Onion, Potato 9856
Total population = 41044 Potato,
(2021) Shivnagar Soybean,
Total House Holds = 7715 2 Wheat, Garlic 4355
Flowers,
Memdi
3 Cucumber 2708
Potato,
Gosikheda
4 Soybean, Onion 2657
Potato,
Datoda Soybean,
5 Wheat, Flower 11224
Community Institutions present in Simrol

Gram Name of VO Number of SHGs VO MIS Code

Panchayat

Datoda JAGRATI GRAM SANGTHAN 32 292832

DATODA

Memdi NARI SHAKTI AJIVIKA VO MEMDI 20 239434

AADARSH AJIVIKA VO BARDARI 3 287745

Shivnagar AJIVIKA GRAM SANGTHAN 3 451759

GOKNYA

SANGAM VO SHIVNAGAR 13 239436

Simrol MA BHAVANI AJIVIKA GRAM 27 241259

SANGHTHAN SIMROL
Community Institutions present in Simrol

Meeting with members of Jagrati Gram Sangathan, Datoda

SWOT analysis of Jagrati VO
STRENGTH
 Operates in the same location
where Agro-park has been
proposed.
 Recognized by NRLM. It will be
easier to sanction funds.
THREAT
 Lack of business acumen could lead
to failure of the project. (NPA)
 Being women from village, their
authority might not be respected.
WEAKNESS
 In terms of members and power, it
is small as compared to a CLF.
 A CLF will be always preferred
over a VO
OPPORTUNITY
 Upliftment of socio-economic
status of women.
 A chance to promote women in
Agri-business.
FPC – An alternative
Who can form a producer company?
 Primary Producers- Any ten or more primary producers.
 Producer institution- Any two or more producer institutions.
 Producers and institutions- A combination of ten or more individuals and a producer institution.

Activities of a Producer Company:

Benefits of FPC –  Production, harvesting, procurement,
 Training to the farmers grading, sorting, marketing
 Providing credit facilities  Export produce of farmers
 Technology transfer  Import goods and resources
 Helping farmers access bigger markets  Supply farm machineries
 Getting inputs at affordable rates  Supply of consumables
 Increasing market intelligence  Education and welfare services
 Natural resource development and
management
 Extension activities
 Credit and insurance
FPC – An alternative
FPC – An alternative
 Agro Park as a start up!!

Profitability Sustainability

Increase
Margin Reduce COP  Training Programs
with incentives.

 Shareholding
 No investment
Cost  Grants & Schemes

 Tie ups with NGOs &

CSRs
FPC – An alternative
FPC – An alternative
SWOT analysis of new FPC
STRENGTH
 Every member is a primary
producer
 Membership is open to all
 High digital literacy
THREAT
 Might be dominated by big and
powerful farmers.
 Process of registration is complex
WEAKNESS
 It is not recognized by NRLM. So,
sanctioning funds will be difficult.
 Will take some time to get
registered
OPPORTUNITY
 Upliftment of socio-economic
status of farmers or primary
producers.
 More business exposure for small
and marginal farmers.
Mixed Model – A way forward

VO FPC
CL
VO
F
To be
Board of Directors registered

Marketing Committee
Processing Committee
As an
Production Committee FPC
CEO
Supporting Schemes
Sl General nature of
no. Name of Scheme Subsidy Website
Credit linked Back ended (25 to
1 Construction of Rural Godowns 33.33%) Agricoop.nic.in

Credit linked Back ended (25 to

33.33%) Individual producers
2 Dairy Entrepreneurship Dev Scheme (DEDS) can utilize the scheme. dahd.nic.in
Credit linked Back ended
3 Nursery Maximum 50 % nhm.nic.in
25% for OF 40% for SF/MF in
general areas and 50% for NER/
4 Cut Flowers Himalayan states  
40% for farmers in General
areas, 50% for NER/ Himalayan
5 Spices and aromatic plants states  
6 Cold Chain – Non horticulture Grant in aid / interest subsidy Mofpi.nic.in
Primary Processing centre – The Scheme is applicable
to both horticulture and nonhorticulture produce such
as: fruits, vegetables, grains& pulses, dairy products,
7 etc. Grant in aid 50 % to 75%  
Revenue Estimation

Source: https://rurban.gov.in/index.php/login/index

Potato Cold Onion Horticulture

Storage Warehouse Warehouse Total Annual profit =
INR 4544935.07 /-
• INR • INR • INR
4,046,363.64 302,857.14 195,714.29
Major Revenue generators
Sl No. Particulars Unit Quantity Rate Amount Assumption
  Potato Cold Storage          
  Total Capacity MT 5000     
  Market Rate per Kg Rupees 2.1     
  Cheapest Rate per Kg Rupees 1.6    Sahakari Sheet Gruha
  Our rate per Kg Rupees 1.5     
  Total Revenue per year Rupees 7500000  INR 7,500,000.00 
  Major Expenditure          
As per information gathered
  Electricity bill per month Rupees 318181.8    from cold storage facilities
Assuming the cold chamber is
  Annual Electricity Bill Rupees 2863636  INR 2,863,636.36operated for 9 months
  Monthly salary          
  SBU Head cum Technician Number 1 15000 INR 15,000.00Going rate in market
  Technician cum helpers Number 2 10000 INR 20,000.00 
  Miscellaneous       INR 10,000.00 
  Total per month       INR 45,000.00 
  Total per year       INR 540,000.00 
  Yearly Maitenace       INR 50,000.00 
  Total expenditure per year       INR 3,453,636.36 
  Total profit per year       INR 4,046,363.64 
Major Revenue generators
Sl No. Particulars Unit Quantity Rate Amount Assumption
1Onion Warehouse          
2Total Capacity MT 250     
3Weight of one katta Kg 60     
3Capacity in terms of Katta Number 4166.67     
4Market Rate per katta per month Rupees 15     
5Cheapest Rate per katta per month Rupees 14     
7Our rate per katta per month Rupees 12     
8Total Revenue per month Rupees 50000  INR 50,000.00 
Assuming the warehouse is filled
9Total Revenue per year Rupees 600000  INR 600,000.00throughout the year
9Major Expenditure          
As per information gathered from
10Electricity bill per month Rupees 8928.57    private onion warehouse
Assuming the warehouse is in use
11Annual Electricity Bill Rupees 107143  INR 107,142.86throughout the year
12Monthly salary          
14Technician cum helpers Number 2 10000 INR 10,000.00 
15Miscellaneous       INR 5,000.00 
16Total per month       INR 15,000.00 
17Total per year       INR 180,000.00 
18Yearly Maitenace       INR 10,000.00 
19Total expenditure per year       INR 297,142.86 
20Total profit per year       INR 302,857.14 
Major Revenue generators
Sl No. Particulars Unit Quantity Rate Amount Assumption
1Horticulture Warehouse          
2Total Capacity MT 500     
4Market Rate per quintal per month Rupees 15     

5Cheapest Rate per quintal per month Rupees 12     

7Our rate per quintal per month Rupees 10     
8Total Revenue per month Rupees 50000  INR 50,000.00 
Assuming the warehouse is filled
9Total Revenue per year Rupees 600000  INR 600,000.00throughout the year
9Major Expenditure          
As per information gathered from
10Electricity bill per month Rupees 17857.1    private warehouse
Assuming the warehouse is in use
11Annual Electricity Bill Rupees 214286  INR 214,285.71throughout the year
12Monthly salary          
14Technician cum helpers Number 2 10000 INR 10,000.00 
15Miscellaneous       INR 5,000.00 
16Total per month       INR 15,000.00 
17Total per year       INR 180,000.00 
18Yearly Maitenace       INR 10,000.00 
19Total expenditure per year       INR 404,285.71 
20Total profit per year       INR 195,714.29 
Conservative Assumptions
• Profit was calculated only for 3 out of 10 units present in the Agro-Park as data was not available for
the other units.
• Solar and Bio gas energy to be used to generate electricity which was not considered while
calculating electricity bill.
• Break even will also be calculated using the profit of 3 units only.
• Depreciation is assumed to be 10 %

Areas of Concern Areas yet to be explored

• Dormancy – Constant follow up • 7 units yet to be explored & NOPAT

• Mismanagement of funds and power • More schemes for funds
• Domination • MoU between VO & FPC
• Political Interference • Technical Support & Hand holding
Recommendations
• Agro-park will be run by a mixed model of CI to be known as AGCLF.
• Skill Development trainings – Handling accounts, Operating Machines, Leadership &
managerial skills
• More VOs required to form a CLF.
• Inclusion of tribal arts – Bamboo crafts, interior decorations
• Venture into organic products
• BOD should compulsorily include women, small & marginal farmers.

Conclusion
• Benefits to Farmers – Expenditure Reduction, Dividends
• Benefits to VO – Exposure to Business Activities
• Socio-economic upliftment of women, small & marginal farmers.
 Thanks!
Reference:

CREDITS: This presentation template was created by Slidesgo,

https://mofpi.nic.in/Schemes/about-pmksy-scheme
https://www.linkedin.com/in/shubha including icons by Flaticon, and infographics & images by
mbarik7008327895 Freepik. https://youtu.be/0oOUZ8arI0E
http://www.avanteefoodpark.com/category.html