International Journal of Agricultural

Science and Research (IJASR)

ISSN(P): 2250-0057; ISSN(E): 2321-0087
Vol. 6, Issue 3, Jun 2016, 241-244
TJPRC Pvt. Ltd.

MAJOR CONSTAINTS FACED BY THE TRAINED AGRIPRENEURS IN

SUCESSFULLY RUNNING THEIR AGRIVENTURES UNDER THE SCHEME OF
AGRICLINICS AND AGRIBUSINESS CENTERS IN ANDHRA PRADESH
M. VINAYA KUMARI1, P. KANAKA DURGA2, M. R. BHANUSREE3 & M. CHANDRIKA4
1

Department of Agribusiness Management, Prof. Jayashankar Telangana State Agricultural University,

College of Agriculture, Rajendranagar, Hyderabad, Telangana, India
2

Faculty, National Institute of Agricultural Extension Management, Hyderabad, Telangana, India

3

Faculty, Uttar Banga Krishi Viswa Vidyalaya, West Bengal, India

Department of Plant Physiology, Prof. Jayashankar Telangana State Agricultural University, Hyderabad, Telangana, India

ABSTRACT
Agriclinics and Agribusiness centers provide a major opportunity

to create gainful self employment

opportunities to unemployed agricultural graduates, to support agricultural development. It is also a fact that the majority
of agripreneures are facing the competition from the dealers who have already established in the market, availing of bank

skilled labour, fear of sale etc., are the major problem faced by agripreneurs. Non-cooperation of farmers illiteracy and
lack of knowledge and marketing and infrastructure are other problems faced by the agripreneurs.
KEYWORDS: Self Employment, Agripreneurs

Received: Apr 19, 2016; Accepted: Apr 28, 2016; Published: May 06, 2016; Paper Id.: IJASRJUN2016028

Original Article

loans, high rate of bank interest, inadequate hand holding support by the nodal training institute, nonavailability of

INTRODUCTION
The scheme of Agri Clinics and Agri Business centers was launched on 9April 2002, to strengthen the
transfer of technology and extension services and also provide self employment opportunities to technically trained
persons. The programme was designed to help development opportunities for private extension, in order to lower
the burden on burden on public funding to offer a wide range of advise in specialist areas than is possible through
public extension, and to develop challenging job opportunities for agriculture graduates.
Manpower availability in agriculture sector indicated that more than 12000 agricultural graduates pass out
from the state agricultural universities (SAUs) all over the country every year , of which only 2000 find job in
public and private sector, leaving a huge number of graduates unemployed(Global AgriSystem, 2009).
The scheme aims at supplementing the existing extension network to accelerate the process of technology
transfer to agriculture and providing supplementary sources of input supply and services.
Objectives of Agriclinics and Agribusiness Centers Scheme:

To supplement efforts of public extension by necessarily providing extension and other services to the
farmers on payment basis or free of cost as per business model of agri- preneur, local needs and
affordability of target group of farmers.

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M. Vinaya Kumari, P. Kanaka Durga, M. R. Bhanusree & M. Chandrika

To support agricultural development

To create gainful self employment opportunities to unemployed agricultural graduates, agricultural diploma
holders, intermediate in agriculture and biological science graduates with PG in agri-related courses.
Agri- clinics: Agriclinics are envisaged to provide expert advice and services to farmers on various technologies

including soil health, cropping practices, plant protection from pest and diseases, crop insurance, post harvest technology ,
market trends and prices of various crops in the markets and also clinical services for animals etc., which would enhance
productivity of crops and animals and ensure increased income to farmers.
Agri- Business Centers : Agribusiness centers are commercial units of agriventures established by trained
agricultural professionals. Such ventures may include maintenance and custom hiring of farm equipment , sale inputs and
other services in agriculture and allied areas, including post harvest management and market linkagesfor income generation
and entrepreneurship development.
National Institute of Agricultural Extension Management (MANAGE) will responsible for providing training to
eligible candidates, through Nodal Training Institutes and motivating them to setting up of Agriclinics and Agribusiness
Centers.
The eligible financial institutions under the scheme are:

Commercial banks

Regional rural banks

State cooperative banks

State cooperative agriculture and Rural Development Banks

Such other institutions eligible for refinance from NABARD.

Project Cost Ceiling
Ceiling of project cost for subsidy has been enhanced to 20 lakh for an imdividual project (25 lakh in case of

extremely successful individual projects) and up to 100 lakh for a group project.

METHODOLOGY
The state of Andhra Pradesh was chosen purposively for the study, it is one of the important state in South India
particularly in establishing Agriclinics and Agribusiness Scheme. Andhra Pradesh has six training institutes to train agri
graduates under Agriclinic & Agribusiness Centres scheme. Out of six training centers, about 573 graduates were trained
by Participatory Rural Development Initiatives (PRDIS). Out of 23 districts of Andhra Pradesh, three districts were
selected randomly. The data was collected from 11 agripreneurs, who have not started their agriventure and 11
agripreneurs, who have already established their agri ventures. The primary data from the agripreneurs was collected
through a well designed and pre-tested schedule by personal interview method, the secondary data was obtained from the
National Institute of Agriculture Extension Management, MANAGE.

RESULT AND DISCUSSION

Impact Factor (JCC): 4.7987

NAAS Rating: 3.53

Major Constaints Faced by the Trained Agripreneurs in Sucessfully Running their

Agriventures Under the Scheme of Agriclinics and Agribusiness Centers in Andhra Pradesh

243

Table 1: Constraints Faced by the Trained Agricultural Graduates in Establishing Their agri Ventures (N=11)
Sl.
.No.
1
2
3
4
5
6
7
8
8
9
10
11
12

Particulars of Problems Faced

High rate of interest
Lengthy procedures involved in obtaining bank loans
Risk of sale
Lack of business and field experience
Seasonality of business
Fear of collection of money from the farmers
Rejection of proposal from banks
Lack of hand holding support from the training institutions
Lack of collateral security
Lack of family support
Hesitation from bankers to finance
Public / private sector job opportunities
Lack of knowledge about the AC and ABC scheme to the banks

Number of
Respondents
9
6
5
4
5
7
6
8
2
7
6
5
4

Percentage
81.18
54.54
45.45
36.36
45.45
63.63
54.54
72.72
18.18
63.63
54.54
45.45
36.36

The data on constraints faced by the agricultural graduates in establishing their agri ventures was collected and it
was found that, high rate of interest (81.18 per cent), lack of hand holding support from the training institutions
(72.72 per cent), lack of family support (63.63 per cent), fear of collection of money from farmers(63.63 per cent), lengthy
procedures involved in obtaining loans(54.54 per cent), rejection of proposal from banks (54.54 per cent) are the major
problems faced. The other constraints are risk of sale, seasonality of business, public/private sector job opportunities, lack
of business and field experience, lack knowledge about the AC and ABC scheme to the banks and lack of collateral
security accounts for 45.45 per cent, 45.45 per cent, 45.45 per cent, 36.36 per cent 36.36 per cent and 18.18 per cent
respectively.
Table 2: Major Constraints Faced by the Sample Agripreuners in Running their Agriventure (N=11)
Sl.
No.
1
2
3
4
5
6
7

Particulars
Heavy competition from well established and other
old dealers in business
Farmers asking the products on credit basis
Non cooperation of the farmers
Insufficient cash in hand while starting the business
Illiteracy and lack of knowledge of the farmers
Average support from family (risk involved and new
activity)
Marketing and infrastructure

No. of
respondents

Percentage

81.82

8
7
6
5

72.72
63.63
54.54
45.45

36.36

27.27

It could be observed that the major problems faced by the agripreuners who have established their agri ventures
were heavy competition from well established and other old dealers in business which accounts for 81.82 per cent followed
by farmers asking the products on credit basis (72.72 per cent), non- cooperation of farmers (63.63 per cent) and
insufficient cash in hand while starting the business (54.54 per cent). The other problems faced are illiteracy and lack of
knowledge of farmers, average support from family and marketing and infrastructure which accounts for 45.45 per cent,
36.36 per cent and 27.27 per cent respectively.

CONCLUSIONS
On the basis of present investigation, the major constraints faced by trained agripreneurs in successfully running
their agriventures. High rate of interest, lot of procedures involved in getting bank loans, fear of sale, lack of business and
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244

M. Vinaya Kumari, P. Kanaka Durga, M. R. Bhanusree & M. Chandrika

field experience, business runs only in seasons, heavy completion from well established and other old dealers,
non-cooperation of the farmers, insufficient cash in hand, marketing and infrastructure facilities etc., are the major
constraints faced by the trained agripreneurs in running their agriventures. This study also advocates the need for linking
between financial institutions with training institutions, agriclinics should be treated on par with government agriclinics
especially in distribution of seeds on subsidized rates.
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Impact Factor (JCC): 4.7987

NAAS Rating: 3.53