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HomePosts Tagged "Amit Patjoshi"
Agribusiness, Floriculture, India, Opinions

Co-authored by Amit Patjoshi, CEO, Palladium India and Biswajit Behera, Associate Director, Palladium India

India’s export economy has great potential in the floriculture sector, and FPOs are leading the way in harnessing this potential. India’s floriculture FPOs can have a significant impact on increasing exports and empowering smallholder farmers, particularly women in rural areas, by embracing climate-smart practices, improving infrastructure, and strengthening market connections.

Floriculture is a rapidly emerging sector in India, commonly referred to as a “sunrise sector” due to its immense potential for income generation and employment creation, especially for small and marginal farmers, many of whom are women. The Indian floriculture market is projected to reach a volume of approximately $5.9 billion by 2030, growing at a compounded annual growth rate (CAGR) of around 7-8 per cent. The sector primarily deals with two types of flowers: cut flowers and loose flowers, with a significant portion of sales occurring through organised retail.

India’s export performance in floriculture has been commendable, though there is still much-untapped potential. In 2023, India exported around 19,600 metric tonnes of floriculture products, worth approximately $86 million. Major export destinations include the United States, UAE, Germany, Canada, Japan, and Malaysia. However, despite the promising figures, the volume of floriculture exports remains modest in comparison to the country’s production capacity.

Geographically, Andhra Pradesh and Tamil Nadu lead the country’s floriculture production, accounting for more than 35 per cent of total production. Other key states include Karnataka, West Bengal, Uttar Pradesh, Gujarat, Maharashtra, and Odisha. These latter states not only produce significant quantities of flowers but also have the potential to serve international markets if supported by improved infrastructure, value chains, and export-oriented business models.

Odisha: Strengthening FPOs Value Chain

Odisha has been an emerging player in India’s floriculture sector, with key districts such as Sambalpur, Rayagada, Ganjam, Puri, Bhadrak, and Angul being major centres for flower cultivation. Farmers in these districts primarily grow marigolds and roses, catering to the local market. However, the state’s floriculture potential extends beyond domestic sales, particularly through the involvement of Farmer Producer Organizations (FPOs).

FPOs have become essential in strengthening the floriculture value chain in Odisha. The first floriculture FPO in the state was established in 2021 by Palladium, in collaboration with NABARD. This initiative trained around 650 women farmers in enhanced production techniques, post-harvest practices, and business planning to cater to local market demands. However, to meet export market requirements, significant challenges remain, particularly related to climate variability, market fluctuations, and a lack of infrastructure.

The floriculture value chain in Odisha involves multiple stakeholders, including smallholder farmers, FPOs, research institutions, and government agencies. FPOs play a critical role by aggregating the produce of small and marginal farmers, helping them achieve economies of scale, access to markets, and technical support. By working collectively, farmers under FPOs can reduce production costs, adopt advanced technologies for post-harvest management, processing and value-addition in floriculture value chains and negotiate better prices in both local and international markets. Furthermore, FPOs can facilitate partnerships with research institutes to drive innovation and improve yields, while also ensuring that sustainable practices are adopted to combat climate-related challenges.

Business models through FPOs

The business model for floriculture exports through FPOs hinges on the role of FPOs, which serve as the link between small farmers and the broader market. The aggregation of products through FPOs ensures that smallholder farmers, who individually may lack the resources or scale to export, can still participate in international markets.

The primary steps in the floriculture export business model include:

1. Production: FPOs provide access to high-quality seeds, fertilisers, and technical knowledge to improve yield and ensure the quality of flowers meets export standards.

2. Aggregation and Processing: FPOs collect the flowers from member farmers and handle post-harvest processing such as grading, packaging, and storage. This ensures that the flowers are of a uniform standard, which is critical for export.

3. Logistics: FPOs manage the transportation of flowers to international markets. In the case of cut flowers, this often involves specialised cold storage and transportation to maintain freshness.

4. Marketing and Export: FPOs, in collaboration with export agencies, identify international markets, negotiate prices, and handle the regulatory requirements of different countries.

FPOs also play a crucial role in ensuring that farmers receive fair prices for their produce by eliminating intermediaries and improving their bargaining power. In the case of Odisha, where floriculture is still in its developmental phase, the business model emphasises capacity building, market linkages, and scientific research to enhance production and ensure that smallholder farmers can access international markets.

Recently, Palladium has successfully facilitated an agreement between the Sabuja Sanatanpali Farmer Producer Company Limited and the Council of Scientific and Industrial Research (CSIR), National Botanical Research Institute, Lucknow. This partnership focuses on promoting scientific research in floriculture, including plant-environment interactions and biotechnological approaches for improving plant quality. Such collaborations are pivotal in helping FPOs adapt to climate challenges and improve production levels, ensuring the competitiveness of Odisha’s floriculture in export markets.

To read more click on: https://agrospectrumindia.com/e-magazine

Co-authored by Amit Patjoshi, CEO, Palladium India

Agribusiness, AgroPolicy, India

Experts from the agri sector have praised the announcement that aims to encourage more private and public investment in areas of post-harvest activities

The agricultural sector has expressed its appreciation for the Union Budget 2024. Experts from the agri sector have praised the announcement that aims to encourage more private and public investment in areas of post-harvest activities. This includes aggregation, modern storage, efficient supply chains, primary and secondary processing, as well as marketing and branding. This step is considered laudable and has been welcomed by the industry.

MK Dhanuka, Managing Director, Dhanuka Agritech said,

“We commend the Finance Minister Nirmala Sitharaman’s budget announcement for adhering to the path of fiscal consolidation and yet presenting a far-sighted budget.  The announcement to further encourage private and public investment in areas of post-harvest activities including aggregation, modern storage, efficient supply chains, primary and secondary processing and marketing and branding is a laudable step. The move will help reduce huge wastage and in turn, help in enhancing farmers’ income. The focus on promoting ‘Research & Development’ as well as on technological advancement in various aspects including agriculture is also a step in the right direction. The decision to promote the application of Nano DAP on various crops in different agro-climatic zones is in line with the Government’s vision of promoting technological advancement in the rural sector. We have already witnessed the huge amount of savings to the tune of Rs 2.7 lakh crore that ‘Direct Benefit Transfer’ has resulted in.”

Amit Patjoshi, CEO, Palladium India said,

“We commend the government’s strong commitment to the agricultural sector evident in the Budget. The focus on value addition and income augmentation for farmers is pivotal, and the success of initiatives like Pradhan Mantri Kisan Sampada Yojana, benefiting 38 lakh farmers, is truly commendable. The support extended through Pradhan Mantri Formalisation of Micro Food Processing Enterprises Yojana, assisting 2.4 lakh SHGs and 60 thousand individuals, reflects a holistic approach towards empowering the agricultural community. The emphasis on reducing postharvest losses and enhancing productivity aligns with the sector’s long-term sustainability. Furthermore, the launch of schemes promoting climate-resilient activities for the blue economy 2.0 is a forward-looking step. This integrated and multi-sectoral approach for coastal aquaculture and mariculture, coupled with restoration and adaptation measures, holds promise for sustainable growth. Overall, this budget signals a positive trajectory for the agricultural sector, laying the foundation for a more resilient and prosperous future.”

Mohan Kumar Mishra, Secretary, National Council of Cooperative Training (NCCT) said,
“This budget is people-centric and focuses on agriculture, rural development, and fisheries, with a strong emphasis on farmer cooperatives and value addition.
Many initiatives are continuations of previous budgets, aiming to strengthen the rural credit structure. Primary Agriculture Cooperative Credit Societies (PACS) are expected to emerge as multi-service centres for rural prosperity with financial support and credit availability.”

Dr Sat Kumar Tomar, Founder & CEO,  Satyukt Analytics said, “The Budget 2024 has resonated positively with the agriculture sector, aligning with our expectations for a technologically driven, sustainable farming approach. While the integration of IoT devices for precision farming wasn’t explicitly mentioned, the focus on farmers is evident. Crop insurance coverage for 4 crore farmers under the PM Fasal Bima Yojana ensures risk mitigation. Additionally, the announcement of rooftop solarisation benefiting 1 crore households aligns with sustainable farming goals. The commitment to Direct financial assistance for 11.8 crore farmers under the PM Kisan Samman Yojana reflects a dedication to enhancing the 3Ps of agricultural business: productivity, predictability, and profitability. However, the industry was expecting more industry-centric announcements in this budget to further catalyze growth and innovation in the agricultural sector.”

Jinesh Shah, Managing Partner, Omnivore opined, “Despite the brevity, the interim budget offered some interesting interventions. Specifically in the agriculture sector, encouraging public-private partnerships for post-harvest activities can directly address the chronic issues around food waste, low-capacity utilization of processing units, and standardised quality. India’s dependence on edible oil imports has been a shadow on the atmanirbhar sentiment of the country. With the Atmanirbhar Oil Seeds Abhiyan, a reboot of the Yellow Revolution is afoot. This not only serves to make India self-sufficient in edible oil but also, with efficient implementation, will have a lasting impact on farmer incomes.

One of the most interesting aspects of the budget was the emphasis on green initiatives, specifically on alternative materials. The government’s support of regenerative practices will provide young startups in this space the necessary credibility in the global markets.”

Experts from the agri sector have praised