Feasibility study on individual investment in agricultural and allied activities

Abstract

The business model proposed is to create a pool of unused barren land of farmers in a locality or village on a rental or lease basis. The land acquired would be used for farming practices incorporating advanced technologies. The proposed plan has two aspects to it, the cultivation of crops and the Investments. The study focuses on identifying the challenges and the feasibility of the proposed business model. After interviewing various stakeholders from farming communities and individual investors, we were able to identify some of the pain points and challenges associated with the proposed model. Even though the share of agricultural industry in the GDP has decreased over the years, still it caters to around INR 55,994 billion market value and is expected to grow at a CAGR of 12%. Credit availability happens to be one of the most main drawbacks of the Indian agriculture and by enabling retail and individual investors to be part of the agricultural production value chain, the impact of this can be dampened. The primary and the secondary research shows that the business model is viable but has a separate set of challenges which are addressed in this report.