Agriculture is the mainstay of the Indian economy. It is the dominant employment providing sector. As a result, it has a huge impact on the population of our country. As a developing nation, both agriculture and industry are important to our economy. Also, they are important to each other. Agriculture provides inputs to the industry. The outputs from the industry are in turn used in agriculture to expand production.
Moreover, there is a growing recognition that agriculture business development occurs at many levels. This is essential for the expansion and diversification of agricultural products. In fact, it is the next step in securing food sustainability.
What do you mean by Agricultural Business?
Agricultural Businesses or ‘Agro-industries’ manufacture agricultural equipment. They also manage the supply, processing and distribution of agriculture products. Moreover, based on the type of link they have with agriculture, these industries can be of two types:
- Agro industries: These are supply industries which support agriculture by producing the inputs. For example, agricultural implements, seeds, fertilizers and pesticide units and so on.
- Agro-based industries: These are processing industries which are supported by agricultural products. These include food processing, tobacco, paper, leather, textile industries and so on.
Importance of Agricultural Businesses
Agro-based industries help to process agricultural products into edible and other usable forms. These include seeds, pulses, cereals, lentils, beans and nuts, livestock and fisheries. In fact, Agro-industrial activities expand the markets for raw agricultural products. Moreover, by minimizing post-harvest losses & integrating food production and processing, they help to:
- Stabilise agriculture and exploit it to its full potential.
- Create job opportunities at different levels.
- Decrease the seasonability of consumption of processed foods.
- Increase the shelf life of agricultural commodities, hence increase the viability and profitability.
- Avoid wastage of perishable agricultural products.
- Increase sustainability of food leads. Hence, higher returns for farmers.
- Improve employment opportunities for the rural population. As a result, improve their standard of living.
Problems faced by Agricultural Businesses
The objectives of the agro-based industry are to:
- minimize product losses
- maximize their value
- achieve high-quality standards
- keep the processing costs low
But there are many challenges to these objectives being met, in the form of:
- A very low level of investment in agriculture.
- Seasonality of crops.
- Inconsistent as well as an insufficient supply of raw materials.
- Fluctuations in raw material quality
- Fluctuating market prices.
- Sub-par technology for handling as well as storage.
- High losses during storage, handling, processing, and during transport from farm to factory.
- Inappropriate packaging materials.
- High packaging costs.
- Sub-optimal use of processing facilities.
- Lack of proper hygiene and sanitisation practices.
- Lack of proper guidance to entrepreneurs.
- Scarcity of financing, lack of consumer education.
- Inadequate research and development support for product development.
- Lack of technical support for the agro-industry.
Hence, there is a need for improvement at many levels of functioning of the agro-industry. In fact, one of the critical levels is the supply chain.
What is supply chain?
The supply chain of a typical agricultural business includes step-by-step processes. These processes aim to meet the final customer requirements. These take place between different stages. This means, from production to final consumption. It includes:
- producer and its suppliers
- transporters
- warehouses
- retailers
- consumers
Moreover, it also includes:
- handling and storage
- processing
- new product development
- marketing
- operations
- distribution
- finance
- customer satisfaction
– all fall under the supply chain as well.
Various problems in the supply chain can lead to huge losses, in raw materials and end products. In fact, these problems occur due to:
- A delay in production
- Improper Storage
- Transport Problems
Improper storage can occur due to unpredictable climate. It can also occur due to pest infestation from insects, rodents and birds. This can lead to huge losses of agricultural produce, in both quality and quantity. Managing the supply chain well ensures efficient production. As a result, the delivery of products that meet market requirements. This problem can be resolved by using hermetic storage bags.
What are hermetic bags?
Hermetic bags are airtight bags that prevent air or water from getting into the bags. In fact, they are made using hermetic technology which preserves the contents of the bag.
This ensures an air-tight barrier between the stored produce and outside environment.
SaveGrain Bags also work on hermetic technology. They are made from a special polymer called Ethylene Vinyl Alcohol (EVOH). It has been manufactured using a proprietary Japanese technology under the EVAL trademark. Hence, the presence of EVOH ensures that the Save Grain Bags bags act as airtight containers. As a result, they preserve the flavor, freshness and aroma of its contents. How can hermetic bags help agricultural businesses? Hermetic bags are useful to:
- Store raw materials used for production, such as wheat, rice, maize, seeds, etc.
- Store final products such as flour, spices, sugar, etc.
Save Grain Bags offers hermetic storage bags for both these purposes. In fact, they help to reduce post-harvest losses and improve agricultural yield. Our hermetic bags are available in different quantities. These include:
- 500 gm
- 1 kg
- 2 kg
- 5 kg
- 25 kg
- 50 kg
- 100 kg
Moreover, these bags are useful to store dry agricultural produce for a long duration. In fact, hermetic technology keeps the aroma, taste, or nutritive value of the product intact.
Lastly, hermetic bags are an affordable, effective and chemical-free option. They can help improve the functioning of agricultural businesses at different levels. As a result, they can contribute to the goal of attaining food security.
