Thursday, October 12, 2006

Let us think big...

Agriculture employs 67% of workers in India. Agriculture contributes to 34% of GDP. Agriculture's growth rate is 3%. I see a grim picture. I see a tremendous opportunity -

1. Potential for farmers to collaborate - Rather than being owner of small 1 acre land, why can't some farmers consolidate and work. Risk hedging by finances as well as whatever fertility difference in soil.

2. Potential for getting sponsored by retailers - Doable but not easy. e-choupal is a start but we need to remember that it was ITC that started it.

3. Potential to kick someone's a** at Mandi - Let us accept it, Mandi system sucks and that is the biggest pain to any farmer. From point 1, a united front of farmers can wake Mandi up and demand some rights.

I know Unionization can be said as a potential threat, but we do need it where we need it. And of course, laws can also be made to avoid such a situation. All I am saying is that building some bargaining power in farmers will try to balance the power equation.

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