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  • Category: Miscellaneous

    Wherever the industrial economy supports the rural economy growth follows

    We do not need big project industrialization all the time. A few big companies can have contractors in different cities and they can also support huge employment in their locations. For example, in Coimbatore city, there are too many small entrepreneurs employing ten to twenty people, with a turnover of at least one crore every month, mostly after all expenses and GST as well.

    Well, these entrepreneurs also buy a whole lot of vegetables and fruits grown in the neighbouring villages spread over a one hundred kilometer area. The farmers are able to get a decent amount as profit as they directly sell to the retailers and in some places, the produce goes directly to customers without any middle man.

    Ditto in too many towns in South India. Am not sure about places where industrialization is not much. We need business models where one sector supports another sector, while having some safeguards for the poor.
  • #779132
    Farmers able to sell their products directly to the market or through the enablers are the luckier lot as they can get a good price for their crops. Middlemen create problems everywhere and try to take a good amount themselves rather passing on to the farmers or customers.
    The coordination done by entrepreneurs in Coimbatore is a praiseworthy action and it should be followed in other parts of the country.
    It is true that real growth would be there when farmers get a good price for their produce and live satisfactorily. That would also inspire the young generation to take agriculture as a profession. Today many farmers are leaving village for small jobs in the cities.
    Govt cannot buy everything from farmers on a higher rate because there are problems of storing the material in big Govt warehouses. It is nice if some honest private entrepreneurs take interest in such massive works.

    Knowledge is power.

  • #779134
    Sivakumar, do those entrepreneurs have business related to agriculture? If not, why they should buy vegetables or fruits from the farmers? I agree with your point about mutual support but please specify how?
    'Educating the mind without educating the heart is no education at all'.
    -Aristotle

  • #779135
    In the united Andhra Pradesh, when Chandra Babu Naidu was the chief minister, the Rytu Bazar ( Farmer's Market) concept was introduced. In this market, farmers were selling the vegetables and Fruits directly to the customer without any middlemen. That is giving benefit to the farmer as well as the customer. But slowly after his defeat in the elections, these Rytu Bazaars also became weekly markets where retailers purchased from farmers and sold in these markets. In this way also the farmer is getting a good rate and the customer has to pay a little more.
    Yesterday I met a person who is doing an agri-export business. He has many cold storage facilities. He purchases grapes and other fruits from local farmers and he is exporting. He says that he pays a good price to the farmers and the rare he pays will be a little more than the market price.

    drrao
    always confident

  • #779138
    The peasants take every care to safeguard their produce. They remain interested in having a better price for their produce. They try their best to get a price for their products a little above the market trend. This needs vigorous exercise from their end to reach the centre allotted for such an exchange.
    Moreover, sometimes, they find themselves in a state of helplessness in the wake of the erratic closure of such centres. Such a situation puts them under stress especially when the produce cannot be disposed of immediately in the market at a remunerative price. This needs to be streamlined to take care of the needs of the helpless farmers.

  • #779147
    Saji Sir, the point was that the entrepreneurs directly and indirectly support the rich agriculture produce from the sixty odd villages, spread over a distance of one hundred kilometers.

    I will try to explain how. Coimbatore is home to atleast 40000 such entrepreneurs engaged in sub-contract services as well as pure services as traders in wholesale sarees sourced from Gujarat, entrepreneurs who run medium sized hotels,buy and sell agricultural produce like milk products and so on from the villages.

    Now,Coimbatore is a huge market for weddings and the support of these entrepreneurs is massive for at least 200 days in a year. I do not know if you know --Coimbatore is superbly connected to Bangalore and Chennai by train and hundreds of buses. So, the Coimbatore entrepreneurs also make money trading in the two big metro cities and then conduct lavish weddings. Today, am told, there are 200 wedding contractors who cater to weddings attended by even 5000 people. Now, one such person hails from a village near Mettupalayam and he had in fact cooked for the great Modi and his gang when they were in Coimbatore. Now, fruits, vegetables,and so on, come from Pollachi as well. Perhaps you know the quality of Pollachi coconuts that are also exported. The coconut water from Pollachi is the sweetest in India.

    Well, one feeds another and when the buyers are rich, the farmer does not lose. Hope you get the picture.

    Another allied information, though it is not directly relevant to this thread. Both Pollachi and another very beautiful town called Gobichettipalayam that is around 150 minutes by bus, are centers for most Hindi movies. Am told that the cash flow in these rural pockets,(call them semi-urban,but they are basically busy towns as centre of some sixty rich villages for agricultural trading), is very good as well. Repeat, this has no direct relevance to the thread, but when one feeds the other, we can possibly have far better balanced approach to comprehensive development of the service sector.

  • #779148
    Saji Sir, the city is famous for success stories of all kinds. Suguna Chicken is the largest producer of chicken through some advanced technology that I do not understand, since I do not know anything about Chicken. This is exported as processed food after the birds are slaughtered on the 64th day after their birth(on e again I do not understand the logic of doing this) and exported to most of Europe. Turnover, 5000 crores.

    Now, it might interest you to know that KR Bakes, is the largest chain of the best brand of bakery, which was started by a Mallu man( I think some Nair). He is one of the richest persons in Coimbatore today. The precise point is that the rural economy goes on surving because of the power of entrepreneurs and not because of the huge industries. Well, Coimbatore is now emerging as a SaaS capital in recent times. Expect it to grow at 40 percent per annum in the next few years.

  • #779149
    I don't know whether any respected member has visited Solan (a small town in Himachal Pradesh), or not. It is located on the way to Shimla, just after Kalka. This small town is famous for jam, jelly and pickles. There are many small factories which purchase fruits from Himachal Pradesh, Punjab and Haryana and make jam/jelly, etc. This has become a very profitable small-scale industry and the products of Solan are now supplied all over North India and even in other parts of the country.
    Solan provides many successful examples of small-scale agro-based profitable industry.

  • #779150
    Saji Sir. I must also point out the stupendous success of a brand called Pazhamudhircholai, a Coimbatore-based outlet selling the highest quality of vegetables and fruits. It was first started by a rather illiterate entrepreneur who saw the need and exploited it. His son, who studied MBA abroad, widened the scope and diversified into the Chennai market. There are some clones with similar marketing strategies. Just buy the produce directly from farmers and sell it through their own retail outlets. They have at least ten branches in Coimbatore and neighbouring cities as well. Am told their present turnover would exceed four hundred crores. Am not too sure if the family still runs it. As usual, big brother Reliance Fresh wanted to acquire it. Reliance Fresh had already taken over Kannan Departmental Stores, a successfully run outlet with at least ten odd branches not only in Coimbatore but other towns as well. So, Coimbatore is a city where entrepreneurship thrives and keeps growing with every single day.


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